Southwest Airlines Partners with Valero for SAF Supply

• Stakeholders' contributions support the expansion and usage of SAF.
• The partnership speeds up clean energy goals in the US aviation sector.

Southwest Airlines, a major airline in the US that operates on a low-cost carrier model, has collaborated with Valero Marketing and Supply Company, a subsidiary of Valero Energy Corporation, which manufactures and sells transportation fuels.

The airline's deal with Valero is to bring sustainable aviation fuel (SAF) to Chicago Midway International Airport, making it the largest SAF supply agreement to date.

The two-year agreement allows Southwest to purchase at least 3.6 million gallons of pure SAF starting at the end of this year, with the option to buy up to 25 million gallons over the agreement's duration.

Illinois Governor JB Pritzker said this would support initiatives for sustainability and clean energy in the state and encourage the use of sustainable fuel in aviation.

The SAF is produced from used cooking oil and animal fat, which can reduce greenhouse gas emissions by 74%. It also has third-party certification to ensure that it meets environmental standards.

A joint venture between an affiliate of Valero and Darling Ingredients called Diamond Green Diesel will produce the SAF, mix it with conventional jet fuel, and deliver it to the Chicago area through existing pipelines.

Cooperation across several sectors is required to expand the use of SAF. This partnership is supported by an Illinois tax credit for SAF purchases and contributions from Southwest's corporate customers.

"Today’s announcement marks a milestone in our efforts to utilize more SAF in our operation,” said Michael AuBuchon, Managing Director of Fuel Strategy and Management at Southwest Airlines. “We’re grateful to the state of Illinois for making the Sustainable Aviation Fuel Purchase Credit available to airlines serving Illinois, and we thank our incredible Corporate Customers for supporting our use of SAF, which is a great example of public-private collaboration that we anticipate will help scale SAF and meet our long-term sustainability goals.”

For more information about Southwest's sustainability efforts, visit their website.

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Source: Southwest