Major American carrier Southwest Airlines has signed a huge deal for supply of Sustainable Aviation Fuel.

In a bid to promote sustainable aviation, Southwest Airlines has signed a huge deal for supply of Sustainable Aviation Fuel for 20 years.

In a press statement, the Dallas-based airline says it has entered into an agreement with USA BioEnergy to purchase up to 680 million gallons or about 2.6 billion litres of Sustainable Aviation Fuel (SAF).

The deal is for 20 years and supplies could begin by 2028. The agreement includes a provision in which Southwest Also has the option to purchase an additional 180 million gallons or over 680 million litres of SAF.

“This offtake agreement with USA BioEnergy marks important progress in the development of our SAF portfolio and furthers our goal to replace 10 pc of our total jet fuel consumption with SAF by 2030,” says Michael AuBuchon, Managing Director Fuel Strategy and Management at Southwest Airlines.

The airline says that by definition, an offtake agreement is struck between two companies before a production facility is even constructed.

“We look forward to the opportunity to grow our strategic relationship with USA BioEnergy and potentially purchase more SAF from them in the future,” AuBuchon adds.

“Our agreement with Southwest Airlines is a perfect fit because it aligns Southwest’s goal of reaching net zero carbon emissions by 2050 and USA BioEnergy’s goal of becoming the leading producer of carbon-negative fuel,” says David Prom, Chairman of the Board, Co-Founder of USA BioEnergy. 

“USA BioEnergy is excited to work with Southwest on this initial project and, potentially, future sites we may add in our pipeline,” adds Prom.

Southwest says it is looking to forge relationships now to achieve its sustainable fuel goals in the future.