GHG Emissions, Commercial, Sourcing Renewables  -  October 21, 2024

Southwest Airlines Signs for SAF in Chicago

Southwest Airlines Co. announced a sustainable aviation fuel (SAF) supply agreement to bring SAF to Chicago Midway International Airport (MDW).

The agreement was signed with Valero Marketing and Supply Company, a subsidiary of Valero Energy Corporation.

Southwest will purchase a minimum of 3.6 million gallons of neat SAF, or about 12 million gallons blended, for use in its operations as early as the fourth quarter of 2024 with the option to purchase up to 25 million gallons of neat SAF, or about 84 million gallons blended, during the two-year agreement. 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. The SAF is expected to be certified by a CORSIA-approved Sustainability Certification Scheme (SCS) at the batch level, providing third-party verification that the SAF meets or exceeds all the requirements of Southwest's SAF policy.

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.

The agreement was made possible by the Illinois Sustainable Aviation Fuel Purchase Credit and support from valued Southwest Corporate Customers in Southwest's Scope 3 SAF Program. With this SAF volume, Southwest can expand access for Corporate and Cargo Customers to support the use of SAF in the carrier's operations.

"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, in a statement. "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."

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