United Airlines announces JV to develop sustainable fuel using ethanol

Green Plains

31/01/2023 16:26

Jan 31 (Reuters) - United Airlines Holdings Inc  UAL.O 
on Tuesday announced a new joint venture to develop and
commercialize a sustainable aviation fuel (SAF) technology that
will use ethanol as a feedstock.
    The announcement comes at a time aircraft owners strive to
curb emissions to become more environment friendly.
    Blue Blade Energy, the JV formed by United Airlines, energy
infrastructure company Tallgrass and biorefiner Green Plains Inc
 GPRE.O , will see an investment of up to $50 million.
    The JV will provide up to 135 million gallons of
ethanol-based SAF annually, and up to 2.7 billion gallons in
total under an offtake agreement, United Airlines said.
    SAF, which uses feedstocks such as cooking oils to reduce
emissions by up to 80% from conventional fuel, is seen as the
carbon savior for the aviation sector, which accounts for nearly
3% of global carbon dioxide emissions.
    The JV expects to proceed with the construction of a pilot
plant in 2024, followed by a full-scale facility that could
begin commercial operations by 2028, United Airlines said.
 (Reporting by Priyamvada C in Bengaluru; Editing by Shilpi
Majumdar)
 ((Priyamvada.C@thomsonreuters.com https://twitter.com/priyamouli1812?lang=en;))