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United States : JETBLUE inked a 10-year deal to procure blended biofuel/jet fuel from SG PRESTON
Publish Date : 27-Sep-2016
New York City-based JetBlue Airways has accomplished the signing of a longterm deal with Pennsylvania-headquartered bioenergy firm SG Preston to secure as much as 33 million gallons of blended biofuel/jet fuel per year to support its operations. Through the newly signed 10-year pact, the Pennsylvania company will help the airline cut its reliance on fossil fuels.
SG Preston is now investing $500 million for the development of a new refinery at South Point in Ohio for the annual production of 120 million gallons of biofuel using oil-rich seeds. The JetBlue-SG Preston agreement is said to be one of the biggest deals so far involving renewable jet fuel procurement. Issuing a statement, JetBlue CEO Robin Hayes disclosed, The future of aviation relies, in part, on renewable energy sources.
Jet Blue, an American low-cost carrier, is based in New York City, New York. It is anticipated that the fuel will facilitate a minimum of 50% reduction in the volume of carbon emissions, according to the companies. The blended fuel, comprising 30% biofuels and 70% jet fuel, will account for 4.7% of the airlines fuel consumption per annum. The biofuel will be recovered from non-edible oilseeds.
The companies have disclosed that the price of the blended fuel can be compared with the jet fuel only. The American budget airline has revealed that the new blended fuel will be accessible in the first quarter of 2019. The Founder & CEO of SG Preston Randy Delbert LeTang, however, has not been ready to name the bio-based feedstocks. But, he has revealed that the plants generate HEFA or hydroprocessed esters or fatty acids. According to the companies, the biomass to be utilized does not race with food production.
More biofuel contracts, according to the SG Preston boss, are expected to be announced by 2016. Though no federal biofuel mandates for airline operators now exists, United Continental and Southwest have signed such pacts in recent times. JetBlue, on an average, operates 925 flights on a daily basis to serve 97 destinations. The carrier serves 332 million passengers per year.
