In Texas, Southwest Airlines announced a sustainable aviation fuel supply agreement with Valero Marketing and Supply Company (Valero), a subsidiary of Valero Energy Corporation, to bring SAF to Chicago Midway International Airport (MDW). As part of the two-year agreement, Southwest will purchase a minimum of 3.6 million gallons of neat SAF for use in its operations as early as Q4 2024, with the option to purchase up to 25 million gallons of neat SAF over the agreement’s term. On a blended basis, this would represent up to 35% of Southwest’s jet fuel out of MDW based on the carrier’s usage in the last year. The neat SAF is expected to be produced from waste-based feedstocks, including used cooking oil, animal tallow, and distiller’s corn oil, with a lifecycle greenhouse gas emission reduction ranging from approximately 74% to 84% compared to conventional jet fuel. Diamond Green Diesel, a joint venture between an affiliate of Valero and Darling Ingredients Inc., will supply the neat SAF, which will be blended with Valero’s conventional jet fuel and delivered via existing fuel delivery infrastructure, including Explorer Pipeline and West Shore’s Chicagoland pipeline network.
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