Southwest Airlines Sells its Biofuels Subsidiary, SAFFiRE Renewables, to Conestoga Energy
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Southwest Airlines has transferred its entire renewable fuels subsidiary, SAFFiRE Renewables, to Conestoga Energy, a producer of low-carbon intensity biofuels. The transaction, for which financial terms were not disclosed, includes intellectual property, associated technologies, key members of the leadership team, and plans for a pilot plant in Kansas for the production of sustainable aviation fuel (SAF).
This decision by Southwest is interpreted as an adjustment in its sustainability strategy, amid limited progress in the aviation biofuels industry. The airline, which had acquired all of SAFFiRE Renewables less than two years ago, thus reverses its position from sole owner to investor, in a move that seeks to advance SAFFiRE's technology under new leadership.
SAFFiRE Renewables specializes in the conversion of corn stover, an abundant agricultural residue in the United States, into renewable ethanol, which can then be converted into SAF. The technology, developed at the U.S. Department of Energy's National Renewable Energy Laboratory (NREL), promises an ethanol with a carbon intensity score below -100.
The pilot plant, to be located at Conestoga Energy's ethanol facility in Liberal, Kansas, is scheduled to begin operations in 2026. This project is critical to scaling up the production of SAF, a key component in the aviation industry's decarbonization plans.
Despite the sale, Southwest Airlines maintains its goal of replacing 10% of its total jet fuel consumption with SAF by 2030. The airline continues to explore various avenues to secure supply and support the large-scale production of sustainable aviation fuels.
What is SAFFiRE Renewables?
SAFFiRE Renewables is a process technology company that enables the production of ultra-low carbon intensity ethanol. Its primary focus is the conversion of corn stover into renewable ethanol, which can be used as a feedstock for the production of sustainable aviation fuel (SAF).
"Sustainable aviation fuel represents a multi-billion-dollar market opportunity, and this acquisition positions Conestoga at the leading edge of efforts to bridge the critical supply-demand gap facing the aviation industry while creating transformative opportunities for American agriculture," stated Tom Willis, CEO of Conestoga Energy.
The acquisition by Conestoga not only ensures the continuity of the pilot plant project but also integrates SAFFiRE's technology into its portfolio of biofuel solutions. Conestoga currently manages over 200 million gallons of ethanol and related co-products annually at its plants in Kansas and Texas.
The aviation industry faces the challenge of reducing its carbon emissions, and SAF is considered one of the most promising tools to achieve this. However, current SAF production is limited and its cost is considerably higher than conventional fuel, which represents an obstacle to its widespread adoption.
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