United, Tallgrass, Green Plains to jointly invest USD 50m in SAF JV

US-based United Airlines Holdings Inc (NASDAQ:UAL), energy infrastructure company Tallgrass and ethanol producer Green Plains Inc (NASDAQ:GPRE) have agreed to set up a joint venture to develop a novel sustainable aviation fuel (SAF) technology that uses ethanol as its feedstock.

The three partners will invest up to a combined USD 50 million (EUR 45.9m) in the joint entity, to be called Blue Blade Energy. If its technology is successful, the JV will start the construction of a pilot facility next year, followed by a full-scale plant that may launch commercial operations by 2028, according to a press release.

Blue Blade's new technology was developed by researchers at the US Department of Energy's Pacific Northwest National Laboratory (PNNL).

As part of the agreement, Tallgrass will manage the research and development of the technology and will be in charge of building the plant, while Green Plains will supply low-carbon ethanol feedstock. Apart from agreeing to buy up to 2.7 billion gallons of the SAF produced by the JV, United will also be assisting in the SAF development, fuel certification and into-wing logistics.

"Once operational, Blue Blade Energy has the potential to create United's largest source of SAF providing up to 135 million gallons of fuel annually," said Michael Leskinen, president of United Airlines Ventures (UAV).

(USD 1= EUR 0.919)

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