Southwest and Valero Join Forces for SAF

To strike a giant stride off its carbon footprint, Southwest Airlines company partnered with Valero Marketing and Supply Company to bring sustainable aviation fuel, or SAF, to Chicago Midway International Airport. The deal happens to be the biggest supply agreement that the airline company has entered so far, clearly reiterating the airline's commitment to leading the way in clean energy in the aviation sector. Southwestern Airlines and Valero Energy Corporation have inked a two-year deal in pursuit of rapid usage of SAF in Southwestern's operations. An agreement that shall grant Southwestern the latitude to purchase at least 3.6 million gallons of SAF by year end, and this amount could rise to 25 million gallons by the end of the two years that the contract spans. A Milestone for Sustainable Aviation SAF is being ranked at the top element of strategy put in place by the aviation industry to reduce greenhouse gas emissions. This fuel is derived from renewable sources, such as waste cooking oil and animal fats. Thus, it is a few steps cleaner than the traditional jet fuel. Southwest Airlines further comments that the supplied SAF under this deal may even help reduce up to 74% GHG emissions above conventional fuels. The other merit of the proposed deal is that the fuel provided carries third-party certification, hence ensuring that they strictly adhere to stringent environmental standards. The SAF being procured by Southwest will be manufactured by Diamond Green Diesel, a joint venture between Darling Ingredients and a subsidiary of Valero. This business is focused on producing fuel from renewable feedstocks. For the purposes of this contract, the SAF will be co-mingled with conventional jet fuel and transported via pipelines to the Chicago region, providing for a seamless integration into existing aviation infrastructure. Meeting Illinois Clean Energy Goals This move complements state-level initiatives towards sustainability and clean energy. Illinois Governor JB Pritzker welcomed the partnership by pointing out how the state has been ingraining sustainable practices within sectors like aviation. The government of Illinois has set up a good precedent with regards to SAF acquisition by offering tax credits to airlines that purchase sustainable aviation fuel. This credit makes the concept more financially viable for airlines to include SAF in their offerings and is another step to expanded use of alternative fuels in aviation. Being part of this program, Southwest Airlines contributes to its sustainability goals in addition to aiding Illinois to be a leader in clean energy solutions. Investment in SAF by the airline supports the right kind of contribution to the public-private partnership machinery in driving real progress toward the decarbonization of sectors traditionally challenging to abate, such as aviation. InScope Knowledge Key to Scaling Industry-Wide Cooperation Needed for SAF The adoption of SAF will really depend on a collective effort from airlines, fuel producers, government agencies, and corporate partners. The partnership between Southwest Airlines and Valero is underpinned by contributions from Southwest's corporate customers who have a big investment in trying to reduce their carbon footprint. Those companies are helping create demand for SAF through alignment of travel choices and sustainability commitments. This milestone was considered important by Michael AuBuchon, managing director of Fuel Strategy and Management for Southwest. Corporate customers, in fact, and state policies - such as Illinois's Sustainable Aviation Fuel Purchase Credit - will heavily influence scaling up the use of SAF. The role of such public-private partnerships for a market that encourages investment in cleaner fuels and supplies airlines with the tools to achieve long-term sustainability goals is thus important. SAF's Role in Reducing Aviation Emissions One of the fastest sources of GHG emissions is aviation, so reducing it cuts across all main priorities toward achievement of climate goals. The industry argues that the sector contributes about 2-3 percent to global carbon emissions, and that figure is expected to rise with growth in air travel. The necessary reductions in emissions for efficiency improvement and better operations will yield some savings, but more significant savings are expected through the use of low-carbon fuels such as SAF-from renewable sources-which unlocks decarbonization opportunities for aviation without major changes to aircraft or fuel infrastructure. However, compared to conventional fuels, SAF is still rather expensive to produce and the volumes are still relatively small. Scaling SAF up will require investments into technology, supporting changes in policy, coordination amongst airlines, fuel producers, and governments. Commitment to Sustainability: Southwest Southwest Airlines has emphasized sustainability in its operations during recent years. One of many airlines in the aviation industry drawing the spotlight to SAF, this airline may be one of a more 'green-friendly' way to travel. This most recent agreement with Valero further demonstrates Southwest Airlines's commitment to introducing considerably more SAF into its fuel mix in line with the broader ambitions that the carrier has set: becoming carbon neutral. In the future, Southwest Airlines will continue to invest in the renewable fuels and work with stakeholders for its operations to become increasingly richer in SAFs. The company is set to reduce the carbon footprint of the airline and contribute to the aviation industry in efforts toward fighting climate change. Conclusion Indeed, Southwest Airlines' agreement with Valero to use sustainable aviation fuel at Chicago Midway International Airport is probably the largest step forward yet for clean fuels in the aviation business. A huge deal-the largest supply of SAF that Southwest Airlines has secured to date-the deal illustrates the synergy between airlines, fuel manufacturers, local governments, and corporate customers that can make the transition to these more sustainable forms of energy happen much faster. The entry of SAF will play a pivotal role for the airlines going forward in managing their carbon footprints as pressures mount on the airlines to reduce carbon emissions. Particularly with the impetus from Illinois and a growing demand from the corporate customer, Southwest Airlines is positioning itself ahead of the curve as an aviation leader transitioning to cleaner fuels. Source: Southwest