Business Airline Industry

Southwest Airlines to power some flights with biofuels

Nick Ut/The Associated Press
Southwest Airlines’ Bill Tiffany calls the Red Rock Biofuels deal “a win-win situation.”

Their engines may not emit a nice woodsy smell, but some Southwest Airlines Co. flights may be flying on jet fuel made from “forest residues” in a few years.

Southwest said Wednesday that it has agreed to buy about 3 million gallons of jet fuel a year from Red Rock Biofuels. The Fort Collins, Colo., firm focuses on converting organic materials into biofuels.

Southwest said it is purchasing “low-carbon renewable jet fuel, made using forest residues that will help reduce the risk of destructive wildfires in the Western United States.” Deliveries are to begin in 2016 to Southwest’s San Francisco Bay Area airports.

The amount planned won’t cover much of Southwest’s needs. The Dallas carrier bought 1,818 million gallons of jet fuel in 2013, so 3 million gallons would meet 0.2 percent of its needs. Put another way, 3 million gallons is about 60 percent of an average day’s use.

But it might provide a noticeable portion of the fuel needs at Southwest’s Bay Area airports — San Francisco, Oakland and San Jose.

“Our commitment to sustainability and efficient operations led us on a search for a viable biofuel that uses a sustainable feedstock with a high rate of success,” said Bill Tiffany, Southwest’s vice president of supply chain. “Red Rock Biofuels’ technology, economics and approved use made entering into an agreement for purchase a win-win situation.”

“From the outset, we have sought to build the best possible team of project partners,” Red Rock CEO Terry Kulesa said. “A conversation we started with Southwest on the premise of providing renewable jet fuel at cost parity with conventional jet fuel has evolved into a great partnership. We’re happy to help Southwest diversify its fuel supply.”

Red Rock has received a $70 million grant from the U.S. Department of Energy to build a “biorefinery” in far south Oregon close to Fremont National Forest.

That plant “will convert approximately 140,000 dry tons of woody biomass feedstock into at least 12 million gallons per year of renewable jet, diesel and naphtha fuels,” the companies said.

The airline industry has a number of efforts underway to expand the use of biofuels — fuels made from organic materials — both to reduce costs and lessen the impact of airline flights on the environment.

According to the Energy Information Agency, U.S. airlines used 15.9 billion gallons of jet fuel in 2013, paying a total of $48.2 billion for the fuel.

The International Air Transport Association says a number of airlines have tested biofuel blended with regular jet fuel to power their flights.

“Sustainable aviation biofuels are one of the most promising solutions to meet the industry’s ambitious carbon emissions reduction goals,” IATA says. “Sustainable biojet fuels allow airlines to reduce their carbon footprint, ease their dependence on fossil fuels, and offset the risks associated with the high volatility of oil and fuel prices.”

Follow Terry Maxon on Twitter at @tmaxon.

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