Southwest Airlines Deal Brings SAF to Chicago Midway Intl.


   
    

    

   OAKHURST, N.J. (DTN) --- Southwest Airlines Co. today announced a 
sustainable aviation fuel supply agreement with Valero Marketing and Supply 
Company, a subsidiary of Valero Energy Corp., to bring SAF to Chicago Midway 
International Airport in the state's largest announced SAF supply agreement.

   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 the fourth quarter this year, 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.

   The neat SAF is expected to be produced from waste-based feedstocks, 
including used cooking oil, animal tallow, and distiller's corn oil.

   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.

   Scaling SAF will require collaboration across and beyond the value chain. 
This agreement was made possible by the Illinois Sustainable Aviation Fuel 
Purchase Credit and support from valued Southwest Corporate Customers in 
Southwest's Scope 3 SAF Program. With this SAF volume, Southwest can expand 
access for Corporate and Cargo Customers to support the use of SAF in the 
carrier's operations.




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