US-headed air carrier Southwest Airlines Co. (Southwest) has announced the signing of Memoranda of Understanding (MoU) with two leading energy companies intended to facilitate the development and production of commercialized sustainable aviation fuel.
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Southwest Airlines has signed MoUs with Marathon Petroleum Corporation (MPC), and Phillips 66 Co. (Phillips 66).
According to Southwest, these collaborations may include a variety of initiatives, for example, an increased focus to advocate sustainable aviation fuel (SAF) policies with governmental agencies, cooperation to advance research and development targeted toward greater commercialization of SAF at progressively lower carbon intensities, and partnerships on initiatives to raise public awareness of SAF’s benefits.
Fuel is the primary source of greenhouse gas emissions in the aviation industry and Southwest continually seeks an innovative approach to reduce them, said Stacy Malphurs, VP of Supply Chain Management and Environmental Sustainability at Southwest.
Framework for future possible SAF offtakes
Operating for almost two decades as the largest carrier of air travelers to, from, and within California, its operations in the state include a major East Bay hub at Oakland International Airport (OAK).
The MoUs also sets the framework to explore a future SAF supply agreement involving MPC’s planned Martinez Renewable Fuels facility and Phillips 66’s Rodeo Renewed project.
Our plans include the integration of SAF, a lower carbon alternative on a lifecycle basis to conventional jet fuel, in our operations and we look forward to opportunities with MPC and Phillips 66 to help make that happen, Stacy Malphurs said.
If acquired the SAF would be utilized by Southwest in the San Francisco Bay Area and throughout its operation in the Golden State.
Working with these valued partners, alongside other organizations, is intended to help scale up the SAF industry, bringing SAF to market at competitive prices and helping Southwest meet its carbon-reduction goals, said Stacy Malphurs.
Scaling up SAF production
According to estimates from MPC and Phillips 66, combined, these biorefineries may produce at least 300 million (US) gallons (≈ 1.14 billion litres) of SAF by 2025.
Southwest and these energy companies will explore separate offtake agreements for Southwest’s possible purchase of a substantial share of this SAF— an amount that could represent a significant portion of Southwest’s current demand for conventional jet fuel in California.
Air travel will continue to be one of the primary ways people build connections with each other and the world around them. Increasing the commercial viability of sustainable aviation fuel is a natural next step for the airline industry and our own, and we look forward to extending our ongoing partnership with Southwest Airlines, including supporting their efforts to reduce carbon emissions, said Brian Davis, EVP and Chief Commercial Officer at MPC.
For Phillips 66, the Southwest MoU aims to leverage the company’s expertise in refining, distribution, and technical commercialization of transportation fuels as well as its portfolio of renewable energy projects.
Phillips 66 has a long history of driving innovation in the commercial and general aviation industry. We are excited to work with Southwest Airlines to find ways to help achieve its lower-carbon goals and to develop a path forward for sustainable aviation fuel that benefits all segments of the industry, said Brian Mandell, EVP of Marketing and Commercial for Phillips 66.
The latter includes Rodeo Renewed, the proposed conversion of the San Francisco Refinery in Contra Costa County, California, into one of the world’s largest renewable fuels facilities.
If fully realized the converted refinery would be capable of producing an initial 800 million (US) gallons (≈ 3.02 billion litres) per year of renewable fuels.
The project, subject to permits and approvals, is expected to be completed in early 2024.
Given Southwest’s extensive operations in the Bay Area and throughout California, we’re ideally positioned to benefit from any SAF production by Phillips 66 at Rodeo, Stacy Malphurs said.
Partner with NREL
SAF is a lower carbon-intensity fuel that can be produced from renewable feedstocks such as waste oils, fats, greases, and vegetable oils.
It is a drop-in fuel, meaning it can be used in existing aircraft engines and airport fuel infrastructure.
Southwest continues to increase its commitment and desire to integrate SAF in its operation as the carrier recognizes commercially viable SAF will play an important role in achieving carbon neutrality by 2050.
Southwest also announced an ongoing partnership with the US Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL) to support NREL’s work to enhance the commercialization of SAF at progressively-lower carbon intensities.
The carrier is also a member of Airlines for America (A4A), the industry trade organization representing the leading U.S. airlines that recently announced the commitment of its member carriers to work to achieve carbon neutrality by 2050.
The pledge includes efforts to advance the rapid expansion and deployment of SAF to make 2 billion gallons (≈7.6 billion litres) available to US aircraft operators by 2030.
