Sustainable Aviation

JetBlue signs Agreement with Shell Aviation to boost SAF Supply at LAX

JetBlue signs Agreement with Shell Aviation to boost SAF Supply at LAX.
Shell has already announced its ambition to have 10% of its aviation jet fuel sales as SAF by 2030.

JetBlue is expected to take delivery of 10,000,000 gallons of blended SAF from Shell Aviation at LAX till 2025 and an option to purchase up to 5,000,000 gallons more in the third year.

JetBlue and Shell Aviation have announced a new partnership bringing the additional supply of sustainable aviation fuel (SAF) to Los Angeles International Airport (LAX). This will further assist in targeting the commencement of delivery in the first half of 2023. According to the terms of the agreement, JetBlue is expected to take delivery of 10,000,000 gallons of blended SAF at Los Angeles International Airport (LAX) over the next two years and 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 drops directly into existing aircraft and infrastructure with no impact on 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.

“We’ve long said we need multiple key stakeholders to step up to reach our aggressive emissions reduction goals. This deal with Shell is a key signal of the growing engagement of the major fuel producers to begin converting conventional jet fuel to SAF,” said Robin Hayes, chief executive officer, JetBlue. “Shell’s involvement, with their expertise in energy markets and logistics, is a validation of the SAF market’s potential and highlights how critical the SAF transition of our hard-to-decarbonize industry is to establishing a more sustainable future of flight.”

Shell has already announced its ambition to have 10% of its aviation jet fuel sales as SAF by 2030. To achieve this goal, Shell is building supply chain capabilities to blend, handle and distribute SAF and enable more customers to access SAF, helping to accelerate the pace of decarbonizing the aviation sector.

“It’s terrific to be supporting JetBlue once again in its decarbonization efforts. Like Shell, JetBlue understands that SAF will be the key technology to help decarbonize flight,” commented Jan Toschka, President of Shell Aviation. “LAX is a critical North American airport hub and we’re delighted to be able to provide JetBlue and corporations on its Sustainable Travel Partners program access to SAF, allowing them to lower their emissions while jointly contributing to investments in SAF,” he further added.

The aviation industry is responsible for around 2.5% of global greenhouse gas emissions, and the demand for air travel is expected to grow significantly in the coming years. The use of SAF is seen as a key solution for reducing emissions from aviation, as it has the potential to reduce emissions by up to 80% compared to traditional jet fuel.

The International Air Transport Association (IATA) has set a target of achieving net-zero emissions by 2050, and many airlines have set targets for reducing emissions. However, the production of SAF is currently limited and expensive, and there is a need for government incentives and policies to support its development and adoption.

The additional SAF provided through Shell Aviation at LAX will increase the airline’s SAF supply at the airport, bringing SAF to approximately 15 percent 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.

“We envision a future of a robust, regular, and diversified supply of SAF delivered all around our network, incrementally replacing conventional fuels and driving down emissions in our operation. We’ve publicly committed to cutting our per-seat emissions in half by 2035, and a viable SAF market at scale is a key component to meet this goal,” said, Sara Bogdan, director sustainability and ESG, JetBlue. “Working with Shell will not only help grow the availability of SAF in the long-term, but also ensure this transition is sustainable from a business perspective, by building the connections and infrastructure to help keep the cost of SAF competitive with traditional fuel,” she further added.

While JetBlue’s successes with SAF in California are critical to the airline’s goal to convert 10% of its total fuel to 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.

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The partnership between JetBlue and Shell Aviation is a significant step towards increasing the availability of sustainable aviation fuel and reducing emissions from air travel. It demonstrates the commitment of both companies to sustainability and provides a model for other airlines and fuel suppliers to follow. However, more needs to be done to support the development and adoption of SAF, and government policies and incentives will play a critical role in achieving this goal.