Southwest Airlines enters sustainable aviation fuel deal with Valero
17/10/2024 17:17
Oct 17 (Reuters) - Southwest Airlines LUV.N has
entered into a deal with a unit of Valero Energy VLO.N for the
supply of sustainable aviation fuel (SAF) to the Chicago Midway
International Airport, the carrier said on Thursday.
The U.S. Energy Information Administration expects domestic
production of biofuels to increase by about 50% in 2024, led by
rising production of SAF, which can help decarbonize the
aviation sector.
Under the two-year agreement, Illinois' largest SAF supply
deal, Southwest will purchase a minimum of 3.6 million gallons
of neat SAF for use in its operations as early as in the current
quarter, the company said in a statement.
The carrier will also have the option to purchase up to 25
million gallons of neat SAF over the agreement's term.
Southwest said the neat SAF is expected to be produced from
waste-based feedstocks, including used cooking oil, animal
tallow, and distiller's corn oil.
Diamond Green Diesel, a joint venture between the unit of
Valero and Darling Ingredients DAR.N , will supply the neat
SAF, which will be blended with Valero's conventional jet fuel
and delivered through existing fuel delivery infrastructure.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Shailesh
Kuber)
((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))