JetBlue and Shell Aviation collaborate to bring 10M gallons of SAF to LAX over next 2 years; option for 5M more in third year
JetBlue and Shell Aviation are collaborating to bring additional supply of sustainable aviation fuel (SAF) to Los Angeles International Airport (LAX), targeting commencement of delivery in the first half of 2023. Within the terms of the agreement, JetBlue is expected to take delivery of 10,000,000 gallons of blended SAF at LAX over the next two years. The airline has an option to purchase up to 5,000,000 gallons more in the third year, either at LAX or other airports in JetBlue’s network.
SAF is a type of renewable fuel that exists today that drops directly into existing aircraft and infrastructure with no impact to safety or performance. SAF can be produced from a wide array of renewable sources such as agricultural wastes and used cooking oils and can lower lifecycle greenhouse gas emissions by roughly 80% in its neat form when compared to traditional petroleum-based fuels.
Shell has announced its ambition to have 10% of its aviation jet fuel sales as SAF by 2030. To meet this goal, Shell is building supply chain capabilities to blend, handle and distribute SAF and enable more customers access to SAF, helping to accelerate the pace of decarbonizing the aviation sector.
JetBlue and Shell will also be working to offer corporate customers additional ways to simultaneously reduce emissions associated with their flying while helping ensure transparency and accountability. Through Avelia, one of the world’s first blockchain-powered digital SAF book-and-claim solutions for business travel, organizations will be able to directly address their corporate travel emissions with the purchase of JetBlue-issued SAF certificates.
Developed by Shell and Accenture, with the support of the Energy Web Foundation (EWF), Avelia includes American Express Global Business Travel’s travel management services to aggregate global business demand for SAF, which will increase SAF supply and help accelerate the aviation industry’s pathway towards net zero emissions.
The additional SAF provided through Shell Aviation at LAX will increase the airline’s SAF supply at the airport, bringing SAF to approximately 15% of JetBlue’s total LAX jet fuel uptake. JetBlue also regularly flies on SAF out of San Francisco and in 2022 signed agreements with three additional SAF producers for future supply, continuing to look at future SAF partnerships with a particular interest in encouraging SAF in the Northeast.
While JetBlue’s successes with SAF in California are critical to the airline's goal to convert 10% of its total fuel to be SAF by 2030, the airline acknowledges the vast majority of SAF being delivered today is to California airports as a result of the state’s low-carbon fuel program. To expand SAF usage to other airports, additional federal and state level programs to encourage the voluntary use of lower carbon fuels through incentives will also likely be key in changing the economics for the SAF producers and the airline purchasers.