Watershed, a leading climate solutions platform, has announced the successful facilitation of sustainable aviation fuel certificate (SAFc) purchases on behalf of prominent companies such as BlackRock, Ripple, Samsara, and Block. These certificates, which play a crucial role in reducing carbon emissions from air travel, will supply sustainable aviation fuel (SAF) to Alaska Airlines’ passenger flights. In return, the participating companies will receive carbon offset credits to counterbalance the emissions generated by their employees’ business travel.
Founded in 2019, Watershed is dedicated to supporting businesses in achieving their sustainability goals by providing tools for data collection, reporting, and access to a marketplace for decarbonization investments. Its offerings span initiatives like carbon removal, clean energy, and sustainable aviation fuel. The SAFc purchases are being coordinated with the Sustainable Aviation Buyers Alliance (SABA), an international organization that promotes SAF adoption and investment.
Watershed, an aggregator partner of SABA, has played a pivotal role in SABA’s largest SAFc deals to date. Announced in April 2024, the commitments are expected to result in $200 million worth of SAFc purchases over five years, equating to approximately 50 million gallons of SAF. This investment is anticipated to abate 500,000 tons of CO2e, significantly contributing to corporate decarbonization goals.
Claire Kiely, Head of Watershed Marketplace Carbon Supply, emphasized the importance of collective action in driving the SAF market forward. She stated, “Watershed consolidates our customers’ demand for high-impact, low-carbon technology like sustainable aviation fuel, then works with SAF suppliers, airlines, and experts through SABA to meet that demand and grow an essential new sector. By participating in this historic investment, Watershed customers are providing a powerful demand signal for SAF and affirming the role SAFc will play in corporate emissions reduction initiatives.”
Sustainable aviation fuel, made from renewable or waste feedstocks, offers a significant reduction in carbon emissions compared to traditional jet fuel. SAF can be used in existing aircraft without requiring upgrades to fleets or infrastructure, achieving an average carbon intensity reduction of 80% relative to conventional jet fuel. However, despite its advantages, SAF currently constitutes less than 0.5% of global jet fuel supply and is priced higher than its fossil fuel counterpart, presenting challenges to widespread adoption.
Alaska Airlines, a founding member of SABA’s Aviators group, has been a strong advocate for SAF investment and market growth. Diana Birkett Rakow, Senior Vice President of Public Affairs and Sustainability at Alaska Airlines, highlighted the collaborative nature of this effort. “Investing in SAF alongside partners like Watershed, BlackRock, Ripple, Samsara, and Block helps us scale up use and provides critical demand signals for the market. We’re grateful for their leadership and partnership, and look forward to even more collaboration as they join SABA.”
Through this initiative, Watershed and its partners are not only reducing emissions from business travel but also helping to scale a crucial industry solution. The investments underline the potential of SAF to drive decarbonization in aviation and demonstrate how collective corporate action can accelerate the adoption of sustainable technologies.