STOCK TITAN

Alaska Airlines announces agreement with Shell Aviation to help expand sustainable aviation fuel market in Pacific Northwest

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary

Alaska Airlines has entered into a significant collaboration with Shell Aviation to enhance the sustainable aviation fuel (SAF) market. Announced on March 23, 2023, the partnership aims to establish a robust fuel supply chain and address the infrastructure challenges associated with SAF. As part of the agreement, Shell will supply up to 10 million gallons of neat SAF to Alaska Airlines at Los Angeles. The collaboration focuses on advancing SAF technology, carbon accounting, and public policy support, with particular attention to the West Coast. This initiative supports Alaska Airlines' goal to achieve net zero emissions by 2040, highlighting SAF’s potential to reduce lifecycle emissions by up to 80%.

Positive
  • Collaboration with Shell Aviation to enhance SAF market.
  • Supply of up to 10 million gallons of SAF to Alaska Airlines.
  • Focus on reducing carbon emissions by up to 80% through SAF.
  • Efforts to tackle fueling infrastructure challenges in the Pacific Northwest.
  • Alignment with Alaska Airlines' goal for net zero emissions by 2040.
Negative
  • None.

New collaboration will advance development in the sustainable aviation fuel market and long-term jet fuel supply

SEATTLE, March 23, 2023 /PRNewswire/ -- Today, Alaska Airlines announced an agreement with Shell Aviation to expand the sustainable aviation fuel (SAF) market beyond a standard fuel supply agreement. The innovative cross-industry collaboration brings together a world-class fuel supply chain and the fifth-largest domestic carrier to procure and use sustainable fuel, while working together to define and tackle what it will take to advance SAF technology, development, infrastructure and investment.

"Alaska Airlines has set our course to net zero by 2040 and sustainable aviation fuels represent the greatest near-term opportunity to make a step-level change on that journey," said Diana Birkett Rakow, senior vice president for public affairs and sustainability at Alaska. "That's why we've pioneered SAF technologies for more than a decade. But we can't scale the market alone. We're excited to take this next step in the journey with Shell, to leverage their deep knowledge of the energy industry, its infrastructure requirements and supply chain to make lower lifecycle carbon SAF more widely available for the future."

Details of the agreement include commitments to deepen understanding of the technology, infrastructure, carbon accounting systems and public policy support needed to bring SAF to more markets, in greater quantities and at a more sustainable long-term cost. The companies will put particular focus on enabling supply to the West Coast and alleviating fueling infrastructure challenges in the Pacific Northwest. Shell Aviation will also supply up to 10 million gallons of neat SAF to Alaska Airlines at their hub in Los Angeles.

"We're excited to expand our strong relationship with Alaska and amplify our efforts to help decarbonize aviation through SAF supply on the West Coast and in the Pacific Northwest," said Jan Toschka, president of Shell Aviation. "We need support from the entire ecosystem to build a sustainable future for aviation. This deep level of collaboration will help us put the technologies and supply chain in place to advance the industry."

Both Alaska Airlines and Shell Aviation share an ambition to help scale the SAF market by concurrently addressing cost and volume through multiple strategies to grow availability and commercial viability of SAF.

"With Shell's world-class fuel supply chain and deep technical knowledge, we're aiming to transform West Coast fuel supply," said Ann Ardizzone, vice president of strategic sourcing and supply chain management at Alaska Airlines. "By leveraging the fuel infrastructure expertise of a major fuel producer, we can advance SAF access in more markets, accelerating the market scale of SAF to reach our environmental goals."

SAF is a safe, certified drop-in fuel that meets the jet fuel standards to reduce carbon emissions by as much as 80% of lifecycle emissions.

Learn more about Alaska Airlines efforts to reduce its climate impact and go net zero by 2040 at news.alaskaair.com/collection/planet.

Alaska Airlines
Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We emphasize low fares and award-winning customer service. Alaska is a member of the oneworld global alliance. With the alliance and our additional airline partners, our guests can travel to more than 900 destinations on more than 20 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at news.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/alaska-airlines-announces-agreement-with-shell-aviation-to-help-expand-sustainable-aviation-fuel-market-in-pacific-northwest-301779485.html

SOURCE Alaska Airlines

FAQ

What is the recent agreement between Alaska Airlines and Shell Aviation?

Alaska Airlines has partnered with Shell Aviation to enhance the sustainable aviation fuel market, focusing on technology, infrastructure, and supply.

How much sustainable aviation fuel will Shell supply to Alaska Airlines?

Shell will supply up to 10 million gallons of neat sustainable aviation fuel to Alaska Airlines.

What are Alaska Airlines' sustainability goals?

Alaska Airlines aims to achieve net zero emissions by 2040, with sustainable aviation fuels playing a key role.

When was the collaboration between Alaska Airlines and Shell announced?

The collaboration was announced on March 23, 2023.

How does sustainable aviation fuel help reduce emissions?

Sustainable aviation fuel can reduce carbon emissions by as much as 80% of lifecycle emissions compared to traditional fuels.

Alaska Air Group, Inc.

NYSE:ALK

ALK Rankings

ALK Latest News

ALK Stock Data

8.26B
126.38M
0.46%
88.21%
7.02%
Airlines
Air Transportation, Scheduled
Link
United States of America
SEATTLE