-- JetBlue to Outpace Industry in SAF Usage
Based on Percentage of Total Fuel (a), Doubling Its Prior
Commitment with SG Preston and On Pace to Achieve 10 Percent SAF
Usage Years Ahead of Its Original Target --
-- Sustainability Commitment Goes Beyond Jet
Fuel with Conversion of Airport Ground Vehicles to Electric at
Newark Liberty International Airport and a Comprehensive LED
Lighting Retrofit at New York’s John F. Kennedy International
Airport --
JetBlue (Nasdaq: JBLU) today announced plans to speed up its
transition to sustainable aviation fuel (SAF) with an offtake
agreement with SG Preston, a leading bioenergy developer. With the
addition of this SG Preston agreement to its previous SAF
commitments, JetBlue is well ahead of pace on its target to convert
10 percent of its total fuel usage to SAF on a blended basis by
2030. The airline will reach nearly eight percent SAF usage by the
end of 2023 when delivery of SAF under this agreement is expected.
JetBlue is doubling its previous SAF commitment with SG Preston,
which was first announced in 2016 as one of the largest SAF
purchase agreements in aviation history.
JetBlue’s agreement with SG Preston also marks a major milestone
for SAF in New York’s airports. This deal is expected to bring the
first large-scale volume of domestically produced SAF for a
commercial airline to New York’s metropolitan airports. JetBlue
will convert 30 percent of its fuel buy across John F. Kennedy
International Airport (JFK), LaGuardia Airport (LGA) and Newark
Liberty International Airport (EWR) from traditional Jet-A fuel to
SAF (b), which is expected to reduce emissions by an estimated 80
percent per gallon of neat SAF, compared to traditional
petroleum-based fuels.
Targeting a start in 2023 and continuing over a 10-year period,
SG Preston will deliver at least 670 million gallons of blended SAF
to JetBlue to fuel its flight operations at JFK, LGA and EWR,
helping JetBlue avoid approximately 1.5 million metric tons of CO2
emissions. JetBlue expects to invest more than $1 billion in
purchasing SAF over the term of this agreement, at a price
competitive to traditional Jet-A fuel, with no expected material
impact to the airline’s total fuel costs. This marks the
largest-ever announced near-term SAF deal for delivery in the
Northeast and will be become the airline’s largest single jet fuel
contract.
“We are well past the point of vague climate commitments and
corporate strategies. Earlier this year, we set specific, dated,
and aggressive emissions targets. And now we are physically
changing the fuel in our aircraft to meet these commitments,” said
Robin Hayes, chief executive officer, JetBlue. “At JetBlue,
we’re heavily investing in SAF because we see it as our most
promising means of rapidly and directly reducing aircraft emissions
in the near-term. With this expanded agreement with SG Preston,
nearly eight percent of JetBlue’s total fuel use will be SAF,
putting us well ahead of pace in reaching our goal of 10 percent
SAF usage by 2030.”
Sustainable aviation fuel is jet fuel produced from biological
resources that can be replenished rapidly and without impacting
food supply. Compared to traditional petroleum-based Jet-A fuel,
renewable options can significantly reduce both greenhouse gas
emissions and other air pollutants such as particulate matter and
sulfur oxides. Safety is JetBlue’s number one priority, and SAF is
functionally equivalent to conventional Jet-A fuel, posing no
discernible difference in safety or performance. The fuel is fully
compatible with existing jet engine technology and fuel
distribution infrastructure when blended with fossil jet fuel, and
is tested and transported the same way as regular Jet-A fuel.
SG Preston has made significant progress on a new facility in
the Northeast to produce SAF at a large scale. SG Preston’s HEFA-
(hydro-processed esters and fatty acids) based renewable jet fuel
will be sustainably produced from waste fats, oils, greases, and
non-food oilseeds. The fuel is expected to receive sustainability
certification from ISCC, an independent, global certification body
for sustainability and carbon reduction. SG Preston’s process
utilizes industry-leading refining process technology, which has
been FAA-approved for commercial flying since 2011. This SAF will
be blended with Jet-A fuel at an estimated 30 percent blend ratio
before being transported to JFK, LGA, and EWR.
“The SG Preston-JetBlue relationship is the blueprint for a
balanced partnership designed to achieve both the airline’s and
global aviation’s sustainability and pricing goals. The reality of
achieving the US sustainability target of approximately 35 billion
gallons of sustainable aviation fuel by 2050 is daunting. Engaging
with, and addressing the concerns of all key stakeholders and
contributors to the solution, is paramount to successfully reaching
this target. JetBlue’s continued commitment to SG Preston’s
development strategy illustrates continued confidence in our unique
approach to this challenge. We’re honored by this demonstration of
trust,” said Randy Delbert Letang, CEO of SG Preston.
JetBlue’s SAF Strategy
JetBlue’s revised deal with SG Preston is its third agreement
for SAF. JetBlue recently entered into a new relationship with
World Energy and World Fuel Services and began flying with SAF at
Los Angeles International Airport (LAX) in July 2021. Additionally,
JetBlue partnered with Neste in August 2020 to fuel its flights
from San Francisco International Airport (SFO) with SAF. JetBlue’s
SAF strategy was developed with support and consultancy from energy
market experts at ICF.
While JetBlue views SAF as the most promising solution to
rapidly and directly reduce aircraft emissions in the short and
medium term, it is one piece of its larger decarbonization strategy
including aircraft efficiency, fuel optimization, sustainable
aviation fuel, electric ground operations, technology partnerships
and carbon offsetting.
Hayes continued, “We recognize that airlines have a
responsibility to decarbonize our operations and usher in an era of
truly sustainable travel. We are therefore stepping up as an
industry with commitments and clear actions. However, we can’t do
it alone. In order for our industry to meet our ambitious targets,
we are asking for collaboration and leadership from our key
stakeholders – fuel suppliers, aircraft and engine manufacturers,
and governments to play a critical role in helping the drive toward
net zero.”
JetBlue’s Commitment to Grow Sustainably in New York
New York is JetBlue’s home and where more than 7,000 of its
crewmembers live and work. The airline is experiencing significant
growth in New York, and furthering plans to substantially increase
flying and bring more low fares and jobs to JFK, LGA and EWR as
part of its Northeast Alliance with American Airlines. As JetBlue
increases its presence and brings more air service to the region’s
three airports, it is more important than ever to grow
sustainably.
With a focus on more sustainable operations, JetBlue was
recently selected for a grant from the New Jersey Department of
Environmental Protection’s transportation electrification
initiative for electric ground service equipment (eGSE) at EWR.
With this grant, JetBlue will convert 38 ground service vehicles to
electric, and install 16 dual-port charging stations, with
additional support from the Port Authority of New York and New
Jersey. Following this conversion and one in process at Boston
Logan International Airport, JetBlue will have converted 39 percent
of these three vehicle types to electric. This is significant
progress towards JetBlue’s eGSE goal to convert 40 percent of its
bag tugs, belt loaders, and pushbacks network wide to electric by
2025, and 50 percent by 2030.
Additionally, JetBlue is making significant updates to T5 by
upgrading the entire terminal to LED lighting solutions provided by
Brightcore Energy, a premier provider of turn-key energy efficiency
projects from lighting to solar, renewable heating & cooling,
EV chargers, and battery storage. The T5 upgrades will reduce
JetBlue’s lighting-related energy use by approximately 66 percent,
based on current usage. The project will have a significant impact,
saving more than 2.1 million kWh annually, while improving
aesthetics, lowering energy costs and reducing the terminal’s
carbon footprint.
“We applaud JetBlue’s commitment to convert 30 percent of its
fuel demand from traditional jet fuel to sustainable aviation fuel
across the three major New York airports. This latest initiative
from JetBlue is a critical step towards accelerating the production
and adoption of SAF in the northeast, and achieving the associated
environmental benefits in our region,” said Rick Cotton,
Executive Director of the Port Authority of NY & NJ. “This
initiative advances our continued collaboration with JetBlue on
important sustainability measures, including energy efficiency
upgrades and electrifying ground support equipment at our
airports.”
JetBlue’s Focus on the Environment
JetBlue depends on natural resources and a healthy environment
to keep its business running smoothly. Natural resources are
essential for the airline to fly and tourism relies on having
beautiful, natural and preserved destinations for customers to
visit. The airline focuses on issues that have the potential to
impact its business. Customers, crewmembers and community are key
to JetBlue's sustainability strategy. Demand from these groups for
responsible service is one of the motivations behind changes that
help reduce the airline’s environmental impact. For more on
JetBlue’s sustainability initiatives, visit
www.jetblue.com/sustainability.
About JetBlue Airways
JetBlue is New York's Hometown Airline®, and a leading carrier
in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando and San
Juan. JetBlue carries customers across the U.S., Caribbean and
Latin America, and between New York and London. For more
information, visit jetblue.com.
(a)
Based on publicly announced deals and volumes, as a percentage of
US airlines’ 2019 respective total fuel use.
(b)
The 30 percent value is based on JetBlue’s 2019 fuel usage across
JFK, EWR, and LGA. The actual percentage may vary by the date of
delivery, based on variations in JetBlue’s future fuel
requirements.
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