United Airlines, Tallgrass, and Green Plains Inc. announced the formation of Blue Blade Energy, a new joint venture that will develop and commercialise a novel Sustainable Aviation Fuel (SAF) technology that uses ethanol as its feedstock. If the technology proves effective, Blue Blade plans to construct a pilot facility in 2024, followed by a full-scale facility that could begin commercial operations in 2028. The offtake agreement could provide sufficient SAF for more than 50,000 annual flights between United’s hub airports in Chicago and Denver.
Researchers at the U.S. Department of Energy’s Pacific Northwest National Laboratory (PNNL), a leading centre for technological innovation in sustainable energy, created Blue Blade’s new SAF technology. SAF, which utilises non-petroleum feedstock, is a low-carbon alternative to conventional jet fuel, with up to 85 per cent** lower lifecycle greenhouse gas emissions.
United, Tallgrass, and Green Plains will each contribute their respective industry expertise to the joint venture’s development. Under this cooperative strategy:
- Tallgrass will oversee the research and development of the technology, including the construction of a pilot plant and the production facility.
- Green Plains will provide the low-carbon ethanol feedstock and use its expertise in the ethanol industry to manage the pilot facility’s operations once it is constructed.
- United Airlines has agreed to purchase up to 2.7 billion gallons of SAF produced by the joint venture and assist with SAF development, fuel certification, and in-flight logistics.
If the technology is commercialised, the location of Blue Blade’s initial plant will provide easy access to low-carbon feedstock from the Midwest ethanol production facilities of Green Plains. While the initial SAF facility will use ethanol as its fuel source, the technology is adaptable to any alcohol-based feedstock.
Blue Blade Energy marks one of the largest direct investments from United Airlines Ventures (UAV), United’s corporate venture arm, into SAF. Launched in 2021, UAV focuses on startups, emerging technologies, and sustainability concepts that will complement United’s goal of reaching net zero emissions by 2050 without relying on traditional carbon offsets. United has aggressively pursued strategic investments in SAF manufacturers and revolutionary technologies, such as carbon capture, hydrogen-electric engines, electric regional aircraft, and air taxis.
“The production and use of SAF is the most effective and scalable tool the airline industry has to reduce carbon emissions and United continues to lead the way,” said United Airlines Ventures President Michael Leskinen. “This new joint venture includes two expert collaborators that have the experience to construct and operate large-scale infrastructure, as well as the feedstock supply necessary for success. Once operational, Blue Blade Energy has the potential to create United’s largest source of SAF providing up to 135 million gallons of fuel annually.”
“At Tallgrass, we are striving to innovate how we deliver the energy that powers our nation and enables our quality of life,” said Alison Nelson, Vice President, Business Development at Tallgrass. “Air travel uniquely connects people and improves lives, and the advancement of this novel SAF technology presents a meaningful opportunity to reduce emissions from aviation. We are excited to partner with industry leaders United Airlines and Green Plains on this initiative.”
“Our transformation to a true decarbonized biorefinery model has positioned Green Plains to help our customers and partners reduce the carbon intensity of their products by producing low-carbon proteins, oils, sugars and now decarbonized ethanol to be used in SAF,” said Todd Becker, President and CEO of Green Plains. “This partnership with world class organizations like United Airlines and Tallgrass, shows the value creation that is possible with our low-carbon platform. The potential impact of this project is a gamechanger for US agriculture, aligning a strong farm economy and a robust aviation transport industry focused on decarbonizing our skies.”
*Assuming current regulations requiring SAF to be blended with conventional jet fuel are removed to allow for the use of unblended SAF.
**Based on United’s current SAF supply