Southwest Airlines Seeks To Advance Sustainable Aviation Fuel Through Two New Energy Partnerships.
Southwest Airlines Co. (NYSE: LUV) announced memoranda of understanding with two leading energy companies, Marathon Petroleum Corporation (NYSE: MPC), and Phillips 66 (NYSE: PSX), intended to facilitate the development and production of commercialized sustainable aviation fuel (SAF).
These collaborations may include a variety of initiatives, for example an increased focus to advocate 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.
Stacy Malphurs, Vice President of Supply Chain Management & Environmental Sustainability:
Fuel is the primary source of greenhouse gas emissions in the aviation industry and Southwest continually seeks an innovative approach to reduce them
“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. 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.”
Southwest, nearing two decades as the largest carrier of air travelers to, from, and within California*, plans to utilize any SAF, if acquired from MPC’s planned Martinez Renewable Fuels facility and from Phillips 66’s Rodeo Renewed facility, in the San Francisco Bay Area and throughout its operation in the Golden State.
According to estimates from MPC and Phillips 66, combined, these renewables facilities may produce at least 300 million gallons 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.
READ the latest news shaping the biofuels market at Biofuels Central
*USDOT O&D survey 2001-2020
Brian Davis, MPC Executive Vice President and Chief Commercial Officer:
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.”
Brian Mandell, Executive Vice President of Marketing and Commercial for Phillips 66:
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.”
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.
The Carrier announced yesterday an ongoing partnership with the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) to support NREL’s work to enhance the commercialization of SAF at progressively-lower carbon intensities.
READ the latest news shaping the biofuels market at Biofuels Central
ABOUT MARATHON:
Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation’s largest refining system. MPC’s marketing system includes branded locations across the United States, including Marathon brand retail outlets. Speedway LLC, an MPC subsidiary, owns and operates retail convenience stores across the United States. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. More information is available at www.marathonpetroleum.com.
ABOUT PHILLIPS 66:
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,300 employees committed to safety and operating excellence. Phillips 66 had $55 billion of assets as of Dec. 31, 2020. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.
ABOUT SOUTHWEST AIRLINES CO.
In its 50th year of service, Dallas-based Southwest Airlines Co. continues to differentiate itself from other air carriers with exemplary Customer Service delivered by more than 56,000 Employees to a Customer base that topped 130 million Passengers in 2019. Southwest has a robust network of point-to-point service with a strong presence across top leisure and business markets. In peak travel seasons during 2019, Southwest operated more than 4,000 weekday departures among a network of 101 destinations in the United States and 10 additional countries. In 2020, the carrier added service to Hilo, Hawaii; Cozumel, Mexico; Miami; Palm Springs, Calif.; Steamboat Springs; and Montrose (Telluride/Crested Butte), Colo. Thus far in 2021, Southwest has initiated service to Chicago (O’Hare) and Sarasota/Bradenton, both on Feb. 14; Savannah/Hilton Head and Colorado Springs, both on March 11; as well as Houston (Bush) and Santa Barbara, Calif., both on April 12; and will begin service to Fresno, Calif. on April 25; Destin/Fort Walton Beach on May 6; Myrtle Beach S.C. on May 23; Bozeman, Mont. on May 27; Jackson, Miss. on June 6; and Eugene, Ore. on Aug. 29. The Company also has announced an intention to initiate new service to Bellingham, Wash., later this year.
Southwest Airlines Seeks To Advance Sustainable Aviation Fuel Through Two New Energy Partnerships, Apr 22, 2021
