United Airlines announced yesterday a joint venture to develop and market sustainable aviation fuel (SAF) technology that will use ethanol as a raw material.

Blue Blade Energy, a joint venture formed by United Airlines, energy infrastructure company Tallgrass and biorefiner Green Plains, will receive an investment of up to $50 million.

The joint venture will provide up to 135 million gallons of ethanol-based SAF annually and up to 2.7 billion gallons in total under a purchase agreement, United Airlines said.

SAF, which uses raw materials such as cooking oils to reduce conventional fuel emissions by up to 80 percent, is seen as the carbon savior for the aviation sector, accounting for nearly 3% of global carbon dioxide emissions.

The joint venture expects to continue construction of a pilot plant in 2024, followed by a large-scale facility that could begin commercial operations in 2028, United Airlines said.

Source: RPA news