Southwest Airlines has entered a supply agreement with Valero to provide sustainable aviation fuel (SAF) at Chicago Midway International Airport (MDW) and is the largest SAF supply agreement to take place in Illinois.
The two-year agreement will see the low-cost carrier purchase a minimum of 3.6 million gallons of neat SAF – which equates to around 12 million gallons blended – for operational use from the fourth quarter of this year. Southwest also has the option to purchase up to 25 million gallons of neat SAF – around 84 million gallons blended - over the agreement’s term.
On a blended basis, this would represent up to 35% of Southwest’s jet fuel out of MDW based on the carrier’s usage in the last year.
“Today’s announcement marks a milestone in our efforts to utilize more SAF in our operation,” said Michael AuBuchon, managing director of fuel strategy and management at Southwest Airlines.
“We’re grateful to the state of Illinois for making the Sustainable Aviation Fuel Purchase Credit available to airlines serving Illinois, and we thank our incredible Corporate Customers for supporting our use of SAF, which is a great example of public-private collaboration that we anticipate will help scale SAF and meet our long-term sustainability goals.”
The SAF is expected to be certified by a CORSIA-approved sustainability certification scheme (SCS) at the batch level, providing third-party verification that the SAF meets or exceeds all the requirements of Southwest’s SAF policy.
Governor of Illinois JB Pritzker commented: “Our airports are some of the largest and most connected in the country and I’m thrilled that Southwest and Midway International Airport are partnering to expand sustainable fuel use in their flights, an essential step toward a clean energy future.”
Diamond Green Diesel - a joint venture between an affiliate of Valero and Darling Ingredients - will be the supplier of the neat SAF.