Southwest Airlines Co. announced the signing of memoranda of understanding with Marathon Petroleum Corporation and Phillips 66 to facilitate the development and production of commercialized sustainable aviation fuel. The collaborations aim to support the airline's efforts to reduce greenhouse gas emissions by integrating lower-carbon fuel alternatives into its operations.
Stacy Malphurs, Southwest’s vice president of supply chain management and environmental sustainability, stated that fuel remains the primary source of emissions in aviation. The carrier plans to integrate sustainable aviation fuel as a lifecycle alternative to conventional jet fuel. Malphurs noted that working with these partners is intended to help scale up the industry and bring sustainable fuel to market at competitive prices.
Southwest, which serves as the largest carrier for air travelers to, from, and within California, intends to utilize fuel from specific facilities if acquired. These include Marathon’s planned Martinez Renewable Fuels facility and Phillips 66’s Rodeo Renewed facility in the San Francisco Bay Area. Estimates from the energy companies suggest these facilities could produce at least 300 million gallons of sustainable aviation fuel by 2025.
The airline and the energy firms will explore separate offtake agreements for Southwest to purchase a substantial share of this fuel. This volume could represent a significant portion of the carrier’s current demand for conventional jet fuel in California. The partnerships also include initiatives to advocate for sustainable fuel policies with governmental agencies and raise public awareness of the fuel's benefits.
Brian Davis, executive vice president and chief commercial officer for Marathon, described increasing the commercial viability of sustainable aviation fuel as a natural next step for the airline industry. He expressed excitement about extending the ongoing partnership with Southwest to support carbon emission reduction efforts.
Brian Mandell, executive vice president of marketing and commercial for Phillips 66, highlighted the company's history of innovation in the aviation industry and its goal to help achieve lower-carbon targets.
