Southwest Airlines Co. has reached a sustainable aviation fuel (SAF) supply agreement with Valero Marketing and Supply Company (Valero), a subsidiary of Valero Energy Corporation, to bring SAF to Chicago Midway International Airport (MDW) in the state’s largest announced SAF supply agreement, according to a news release.
As part of the two-year agreement, Southwest® will purchase a minimum of 3.6 million gallons of neat SAF (about 12 million gallons blended) for use in its operations as early as Q4 2024, with the option to purchase up to 25 million gallons of neat SAF (about 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.
“Since day one as Governor, I’ve committed to making Illinois a national leader in sustainability and clean energy, which is why I was proud to support a nation-leading SAF tax credit last year that we’ve already seen make an impact on adoption rates in Illinois,” said Governor JB Pritzker. “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.”
The neat SAF is expected to be produced from waste-based feedstocks, including used cooking oil, animal tallow, and distiller’s corn oil, with a lifecycle greenhouse gas emission reduction ranging from approximately 74% to 84% compared to conventional jet fuel1. Furthermore, 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.
Diamond Green Diesel, a joint venture between an affiliate of Valero and Darling Ingredients Inc., will supply the neat SAF, which will be blended with Valero’s conventional jet fuel and delivered via existing fuel delivery infrastructure, including Explorer Pipeline and West Shore’s Chicagoland pipeline network.
