United Signs JV With Tallgrass, Green Plains To Develop Ethanol Based Aviation Fuel

(RTTNews) - United Airlines Holdings, Inc. (UAL) Tuesday announced a new joint venture Blue Blade Energy with Tallgrass and Green Plains Inc. to develop and commercialize ethanol-based Sustainable Aviation Fuel or SAF technology.

If the technology is successful, Blue Blade is expected to proceed with the construction of a pilot facility in 2024 and a full-scale facility by 2028.

The agreement envisages providing ethanol-based fuel to fly more than 50,000 flights annually between United's hub airports in Chicago and Denver.

As the Sustainable Aviation Fuel technology uses non-petroleum feedstock, it will be a low-carbon alternative to traditional jet fuel that offers up to 85 percent lower lifecycle greenhouse gas emissions.

As per the agreement, Tallgrass will manage the research and development of the technology, including pilot plant development, and will manage the construction of the production facility.

Green Plains will supply the low-carbon ethanol feedstock. United Airlines will assist with the technology development, fuel certification, and into-wing logistics. Further Green Plains has agreed to purchase up to 2.7 billion gallons of SAF.