Southwest Airlines [LUV:US] has announced its acquisition of SAFFiRE Renewables, a company supported by the US Department of Energy (DOE) to develop and expand production of sustainable aviation fuel (SAF), as reported by ESG Today on April 1. SAFFiRE is set to utilize technology developed at the DOE’s National Renewable Energy Laboratory (NREL)to convert corn stover, a widely available agricultural residue in the US, into renewable ethanol. The ethanol produced will then be upgraded into SAF by LanzaJet, asustainable fuel technology startup in partnership with Southwest Airlines. The acquisition builds on Southwest’s first investment in SAFFiRE in 2022, and SAFFiRE will now join the airline’s recently established SAF investment unit, Southwest Airlines Renewable Ventures (SARV).

Earlier this month, Southwest Airlines set up SARV to secure scalable SAF for achieving Southwest’s clean fuel target of replacing 10% of its total jet fuel consumption with SAF by 2030. This will set the stage for the airlines’targets of lowering its carbon emissions intensity from 2019 levels by 25% by 2030 and 50% by 2035,ultimately reaching net-zero emissions by 2050. The recent acquisition would contribute to the ambitious target, as the DOE said the SAF produced using SAFFiRE’s technology could slash greenhouse gas (GHG) emissions by up to 84% compared to fossil fuels. Furthermore, the DOE estimates that this technology enables SAF production at a Minimum Fuel Selling Price (MFSP) of USD2.75 per gallon, way below that of traditional jet fuels.

Sources:

https://www.esgtoday.com/southwest-airlines-acquires-doe-backed-sustainable-aviation-fuel-startup-saffire-renewables/

https://hk.finance.yahoo.com/news/southwest-airlines-acquires-saffire-renewables-183000686.html

https://www.esgtoday.com/southwest-airlines-invests-in-doe-backed-sustainable-aviation-fuel-project/