United Airlines, Green Plains form Joint Venture for ethanol aviation fuel

United Airlines (UAL), Tallgrass, and Green Plains (GPRE, GPP) announced a new joint venture – Blue Blade Energy – to develop and then commercialize a novel Sustainable Aviation Fuel – SAF – technology that uses ethanol as its feedstock. If the technology is successful, Blue Blade is expected to proceed with the construction of a pilot facility in 2024, followed by a full-scale facility that could begin commercial operations by 2028. SAF, which uses non-petroleum feedstock, is a low-carbon alternative to traditional jet fuel that offers up to 85% lower lifecycle greenhouse gas emissions. Tallgrass will manage research and development of the technology, including pilot plant development, and will manage the construction of the production facility. Green Plains will supply the low-carbon ethanol feedstock, and use its ethanol industry expertise to manage operations once the pilot facility is constructed. United Airlines will assist with SAF development, fuel certification and into-wing logistics, and has also agreed to purchase up to 2.7 billion gallons of SAF produced from the joint venture. Blue Blade Energy marks one of the largest direct investments from United Airlines Ventures, United’s corporate venture arm, into SAF.