Dive Brief:
- JetBlue Airways said it signed a deal Wednesday with energy supply management company World Fuel Services, which will facilitate the airline’s procurement of sustainable aviation fuel for flights departing from the John F. Kennedy International Airport in New York.
- The SAF will be provided by a subsidiary of Valero Energy Corporation, a Texas-based fuels producer, under a 12-month agreement slated to kick off as early as the fourth quarter of this year, according to a press release.
- The SAF will be generated from a broad range of feedstocks, including agricultural wastes and used cooking oils, then “blended” with conventional jet fuel from Valero. JetBlue is expected to receive a minimum of 3.3 million gallons of this blended fuel, with an option to purchase an additional 13.3 million gallons, per the release.
Dive Insight:
JetBlue said the SAF will be delivered to JFK using existing distribution infrastructure such as the Colonial Pipeline, which transports refined oil products across the U.S. The delivery will be overseen by World Fuel, which offers fulfillment services across aviation, marine and land-based transportation sectors.
“It takes support across the full supply chain to grow the blended SAF market and meet the aviation industry’s objectives,” Brad Hurwitz, senior vice president of supply and trading at World Fuel, said in the release.
The companies said the blended SAF can lower the lifecycle of greenhouse gas emissions by approximately 80% when compared to conventional jet fuel. The 3.3 million gallons of blended SAF utilize 1 million gallons of “neat” SAF generated from feedstocks.
JetBlue’s collaboration with World Fuel and Valero also aims to spur the distribution and supply network of SAF on the East Coast. Currently, the majority of SAF supplied domestically targets airports on the West Coast, according to the airline. JetBlue said it seeks to “maximize” the supply of blended SAF in the northeast and hopes that through corporate support and incentive programs, this deal will “set the stage for a growing blended SAF market” in the region.
“As a global hub for travel and commerce, we have an opportunity for New York to be viewed as a center for responsible business as well,” Sara Bogdan, JetBlue’s managing director of sustainability and environmental social governance, said in the release.
The deal builds on JetBlue’s sustainability targets, which include achieving net-zero by 2040. The company said it considers SAF as “the most promising solution” to accelerate the reduction of emissions generated by aircrafts in the short and medium term, but also recognizes it is only one proponent of a larger decarbonization strategy which also includes fuel optimization, aircraft efficiency, electrifying ground operations and signing tech partnerships. American Airlines’ CEO Robert Isom said last month there is “an urgent need for more and faster action across the public and private sectors” if the aviation industry is going to meet its climate goals.
The agreement was announced the same day United Airlines said it was signing a deal with renewable and circular solutions company Neste, which will provide the Chicago-based airline with up to 1 million gallons of SAF through the end of the year.
