By: Sunita Somvanshi
Southwest Airlines Co. (NYSE: LUV) has signed a landmark sustainable aviation fuel (SAF) supply agreement with Valero Marketing and Supply Company, which is a subsidiary of Valero Energy Corporation (NYSE: VLO).
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The aim of this partnership is to bring a substantial volume of SAF to Chicago Midway International Airport (MDW), making it the largest agreement of its kind in the state of Illinois.
Southwest Airlines will purchase a minimum of 3.6 million gallons of SAF for use in its operations, with the goal of securing 25 million gallons of SAF over the duration of the two-year agreement.
The sustainable aviation fuel is derived from waste-based feedstocks, such as used cooking oil, animal tallow, and distiller's corn oil which would yield 74% - 84% reduction in greenhouse gas emissions.
The SAF undergoes a rigorous certification by a CORSIA-approved Sustainability Certification Scheme (SCS) at the batch level in order to maintain the purity of the fuel at batch level.
Southwest's "Nonstop to Net Zero" plan outlines the path towards achieving net zero carbon emissions by 2050 through steps like reducing single-use plastics from inflight service by 50%, saving 50 million incremental gallons of jet fuel and eliminating single-use plastics where feasible.
By 2035, Southwest aims to reduce its emissions intensity by 50% and save 1.1 billion cumulative gallons of jet fuel.
The airline also plans to halve the energy utilization index (EUI) at its Dallas headquarters.