United Airlines, Tallgrass, and Green Plains have set up a joint venture (JV) called Blue Blade Energy to develop a "novel" sustainable aviation fuel (SAF) using ethanol.
If the fuel works, Blue Blade expects to build a pilot facility in 2024, followed by full-scale production that could begin commercial operations by 2028. If that all comes to fruition, the output could be enough to fuel more than 50,000 flights annually between United's hub airports in Chicago and Denver, the carrier said.
Blue Blade's SAF technology was developed by researchers at the US Department of Energy's Pacific Northwest National Laboratory, which United described as "a leading centre for technological innovation in sustainable energy".
"The production and use of SAF is the most effective and scaleable tool the airline industry has to reduce carbon emissions and United continues to lead the way," said United Airlines ventures president Michael Leskinen. "This new joint venture includes two expert collaborators that have the experience to construct and operate large-scale infrastructure, as well as the feedstock supply necessary for success. Once operational, Blue Blade Energy has the potential to create United's largest source of SAF providing up to 135 million gallons of fuel annually."
The terms of the JV, United said, will see Tallgrass manage research and development of the technology, including pilot plant development. But first it will manage the construction of the production facility. Green Plains will supply the low-carbon ethanol feedstock, and deploy its ethanol industry expertise "to manage operations once the pilot facility is constructed".
The airline is to help with SAF development, fuel certification and into-wing logistics, and has also agreed to purchase up to 2.7 billion gallons of SAF.
"At Tallgrass, we are striving to innovate how we deliver the energy that powers our nation and enables our quality of life," said Alison Nelson, vice president, business development at Tallgrass.
"Our transformation to a true decarbonised biorefinery model has positioned Green Plains to help our customers and partners reduce the carbon intensity of their products by producing low-carbon proteins, oils, sugars and now decarbonized ethanol to be used in SAF," said Todd Becker, president and chief executive of Green Plains.