Southwest Airlines announced on October 21, 2024, a two-year sustainable aviation fuel (SAF) supply agreement with Valero Marketing and Supply Company for Chicago Midway International Airport (MDW). This marks the largest announced SAF supply agreement in Illinois.
Under the agreement, Southwest will purchase a minimum of 3.6 million gallons of neat SAF, equivalent to approximately 12 million gallons blended, for use in its operations starting as early as Q4 2024. The option exists to purchase up to 25 million gallons of neat SAF, or about 84 million gallons blended, over the term.
This volume could represent up to 35% of Southwest's jet fuel usage out of MDW based on the previous year's consumption. The SAF, produced from waste-based feedstocks, is expected to achieve a lifecycle greenhouse gas emission reduction of approximately 74% to 84% compared to conventional jet fuel.
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