Southwest signs 20-year deal for up to 680 million gallons of SAF
Southwest Airlines signed a 20-year agreement with USA BioEnergy to purchase up to 680 million gallons of sustainable aviation fuel, with procurement beginning as early as 2028. The scale of the commitment signals maturing SAF offtake markets relevant to India's aviation sector and its own sustainable-fuel ambitions.
Southwest Airlines unveiled a 20-year agreement with USA BioEnergy to secure up to 680 million gallons of sustainable aviation fuel (SAF). Blending the SAF with traditional jet fuel could generate around 2.59 billion gallons of carbon-neutral fuel while averting the emission of 30 million metric tons of CO2. Southwest plans to begin SAF procurement from USA BioEnergy's facility in Bon Wier, Texas, as early as 2028. The agreement also allows the potential purchase of an additional 180 million gallons of SAF per annum from future planned production facilities.
The agreement affects the aviation industry and SAF producers, establishing a long-term strategic partnership between Southwest and USA BioEnergy. Southwest is pursuing carbon neutrality by 2050, defined by fuel with a carbon intensity of zero gCO2e/MJ or lower on a lifecycle basis. The deal advances Southwest's goal to replace 10 percent of its total jet fuel consumption with SAF by 2030, illustrating how airlines are using multi-year offtake agreements to build SAF supply portfolios and signal demand to fuel producers.
Airlines and fuel producers should monitor the 2028 start of procurement from the Bon Wier, Texas facility as an indicator of SAF production scale-up timelines. Stakeholders should track Southwest's progress toward replacing 10 percent of jet fuel with SAF by 2030 and the potential expansion to an additional 180 million gallons annually from future facilities. The partnership offers a reference point for how long-term offtake structures can de-risk SAF investment and support aviation decarbonisation goals.
Key figure — SAF volume: up to 680 million gallons over a 20-year agreement
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