As part of the two-year agreement, Southwest® will purchase a minimum of 3.6 million gal. of neat SAF (about 12 million gal. blended) for use in its operations as early as Q424, with the option to purchase up to 25 million gal. of neat SAF (about 84 million gal. 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.
"Since day one as Governor, I've committed to making Illinois a national leader in sustainability and clean energy, which is why I was proud to support a nation-leading SAF tax credit last year that we've already seen make an impact on adoption rates in Illinois," said Governor JB Pritzker. "Our airports are some of the largest and most connected in the country and I'm thrilled that Southwest and Midway International Airport are partnering to expand sustainable fuel use in their flights, an essential step toward a clean energy future."
The neat SAF is expected to be produced from waste-based feedstocks, including used cooking oil, animal tallow, and distiller's corn oil, with a lifecycle greenhouse gas emission reduction ranging from approximately 74% to 84% compared to conventional jet fuel1. Furthermore, the SAF is expected to be certified by a CORSIA-approved Sustainability Certification Scheme (SCS) at the batch level, providing third-party verification that the SAF meets or exceeds all the requirements of Southwest's SAF policy.
Diamond Green Diesel, a joint venture (JV) 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.
"I commend Southwest Airlines for making this significant move forward to bring the first supply of sustainable aviation fuel for its flights out of Midway International Airport," said US Senator, Tammy Duckworth (D-IL). "One of the most important things we can do to make American aviation more sustainable is to dramatically increase the supply of SAF. At the federal level, I'm going to keep pushing to increase the supply of American-grown, American-made SAF from a wide range of feedstocks — a true win-win solution that supports domestic farmers and blenders while reducing our nation's carbon footprint."