Southwest Airlines delivers landmark SAF deal at Chicago Midway Airport
October 22, 2024
Southwest Airlines has partnered with Valero to deliver Illinois’ largest announced sustainable aviation fuel (SAF) agreement.
The fuel, which is being delivered to Chicago Midway International Airport is part of a two-year agreement. Initially Southwest will purchase a minimum of 3.6 million gallons of neat SAF with the option to purchase up to 25 million gallons of the fuel over the course of the agreement. On a blended basis the volume of SAF will represent up to 35% of the low-cost carrier’s fuelling requirements out of Chicago Midway. The initial delivery is the equivalent of about 12 million gallons of blended SAF, while the additional volume will deliver about 84 million gallons of blended SAF.
The SAF which is being supplied by US-based energy company Valero and produced from waste-based feedstocks including used cooking oil, animal tallow and distiller’s corn oil has a lifecycle emission reduction of between 74%-84% compared to conventional jet fuel. The blended fuel will be delivered via existing pipeline infrastructure.
CORSIA COMPLIANCE
At the batch level, the SAF is expected to be certified by ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The global market-based measure to cap aviation’s impact on climate change requires airlines to monitor, reduce and report emissions before offsetting emissions that exceed 2019 levels. For airlines signed up to the scheme’s voluntary pilot phase (2021-203) they need to demonstrate they are CORSIA compliant by April 30 2025. For the First Phase (2024-2026) participating airlines must demonstrate compliance by April 30 of the following year (i.e. demonstrate compliance for 2024 emissions by April 30 2025) and for the Second Phase (2027-2035) airlines must demonstrate compliance by April 30 of each subsequent year.
Underlining that the supply of SAF is a “great example of public-private collaboration” Michael AuBuchon, managing director of fuel strategy and management at Southwest Airlines, thanked the state of Illinois for making the SAF purchase credit available to airlines serving the state. Meanwhile, Commissioner Jamie L. Rhee of the Chicago Department of Aviation (CDA) which owns and operates Midway and Chicago O’Hare airports emphasised it is “critical that Chicago’s airports work together with our airline partners to promote a cleaner, greener future for aviation… We are thrilled that Southwest Airlines has chosen Midway to advance its commitment to sustainability through the use of SAF.”
SAF investments
Earlier this year, Southwest announced it had acquired SAFFiRE Renewables in its efforts to create more opportunities to obtain SAF. The first half of the year also saw the airline invest in LanzaJet, a SAF technology provider and producer with a patented ethanol-to-SAF technology.
