Southwest Airlines acquires SAFFiRE Renewables to boost sustainable aviation fuel production

Southwest Airlines Co. (NYSE: LUV) has taken a significant leap towards sustainability by announcing the acquisition of SAFFiRE Renewables, LLC (SAFFiRE), furthering the endeavors of its wholly owned subsidiary Southwest Airlines Renewable Ventures, LLC (SARV). SARV’s mission is to facilitate Southwest Airlines in acquiring scalable sustainable aviation fuel (SAF) solutions, marking a pivotal move in the airline’s sustainability journey.

SAFFiRE, a venture initially supported by the Department of Energy (DOE), aims to revolutionize the production of renewable ethanol, which can be subsequently upgraded into SAF. This innovative approach utilizes technology developed at the DOE’s National Renewable Energy Laboratory (NREL) to convert corn stover—an abundant agricultural residue in the U.S.—into renewable ethanol, showcasing a sustainable path forward for aviation fuel production.

Bob Jordan, President & CEO of Southwest Airlines, highlighted the strategic importance of this acquisition: “This acquisition marks Southwest’s transition from investor to sole owner of SAFFiRE, expressing our confidence in SAFFiRE’s technology and its potential to advance our sustainability goals as well as the goals of the broader industry.” He further emphasized that championing SAF aligns with Southwest’s Nonstop to Net Zero plan, underlining the airline’s commitment to a sustainable future for air travel.

The acquisition enables SAFFiRE to advance to phase two of their project, which includes developing a pilot plant at Conestoga’s Arkalon Energy ethanol facility in Liberal, Kansas. This plant is set to process 10 tons of corn stover per day, converting it into renewable ethanol—a crucial step before its transformation into SAF by LanzaJet, Inc., a company in which Southwest also recently invested.

Tom Nealon, President of SARV and CEO of SAFFiRE, expressed optimism about the ethanol-to-SAF pathway, stating, “Renewable ethanol is an important feedstock to realizing high-volume, affordable SAF, which is a critical part of the journey to net zero carbon emissions.” He highlighted SAFFiRE’s potential to produce renewable ethanol on a scale that is both economically viable and environmentally sustainable.

This strategic acquisition not only positions Southwest Airlines as a leader in the pursuit of greener aviation practices but also showcases the airline’s proactive approach in investing in technologies that promise a more sustainable future for air travel.

Southwest Airlines’ acquisition of SAFFiRE Renewables is a landmark decision in the aviation industry’s march towards sustainability. It reflects a growing trend among airlines to invest in green technologies that reduce carbon emissions and promote environmental stewardship. By focusing on the development of renewable ethanol as a pathway to SAF, Southwest Airlines demonstrates leadership and commitment to innovation in sustainability.

This move is likely to spur further investments in SAF technology across the sector, encouraging a collaborative approach to achieving net-zero emissions in air travel. As the industry moves closer to this goal, the role of renewable feedstocks like corn stover in SAF production will become increasingly important, showcasing the potential for agricultural by-products to fuel the future of aviation.