Darling Ingredients Inc. announced on October 17, 2024, that its Diamond Green Diesel (DGD) joint venture will supply neat sustainable aviation fuel (SAF) to Chicago Midway International Airport (MDW). This supply is part of a two-year agreement between Valero Marketing and Supply Company and Southwest Airlines Co.
Southwest Airlines will purchase a minimum of 3.6 million gallons of neat SAF, equivalent to about 12 million gallons blended, for use in its operations as early as the fourth quarter of 2024. The agreement includes an option to purchase up to 25 million gallons of neat SAF, or approximately 84 million gallons blended, over its term.
The SAF, produced from waste-based feedstocks such as used cooking oil and animal tallow, is expected to reduce lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel. The DGD Port Arthur plant is anticipated to be online during the fourth quarter of 2024, with the capability to upgrade approximately 50 percent of its 470 million gallon annual production capacity to SAF.
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