United Becomes First U.S. Airline to Sign Agreement to Purchase Sustainable Aviation Fuel Overseas

Rhea-AI Summary

United has signed a groundbreaking purchase agreement with Neste for over 52.5 million gallons of sustainable aviation fuel (SAF) to support flights from Amsterdam's Schiphol Airport. This marks the largest SAF deal made by Neste with a passenger airline, emphasizing United's commitment to sustainability. The agreement allows for 2.5 million gallons in the first year, 20 million gallons in the second year, and 30 million gallons in the third, aiming to reduce carbon emissions by up to 80%. United continues to lead in SAF investments globally, working towards a 100% green goal by 2050.

Positive

• Signed a historic agreement with Neste for 52.5 million gallons of SAF.
• First US airline to secure an international SAF purchase agreement.
• SAF reduces lifecycle GHG emissions by up to 80% compared to conventional fuel.
• Aligns with United's commitment to achieve 100% green emissions by 2050.

Negative

• None.

Agreement with Neste for more than 50 million gallons of SAF to initially fuel United flights out of Amsterdam's Schiphol Airport

Largest SAF agreement Neste has made with a passenger airline 

CHICAGO, May 10, 2022 /PRNewswire/ -- United, which has invested in more sustainable fuel production than any other airline in the world, became the first US airline to sign an international purchase agreement for sustainable aviation fuel (SAF).

The airline has signed a new purchase agreement with Neste that provides United the right to buy up to 52.5 million gallons over the next three years for United flights at Amsterdam's Schiphol Airport, and potentially other airports as well.

"Reducing carbon emissions from fuel is the fastest way United will reach our 100% green goal by 2050. As the airline that has invested more than any other airline in sustainable aviation fuel production, it makes sense to expand our network of partners internationally with a leading company like Neste," said Lauren Riley, United's Chief Sustainability Officer. "The demand from our customers to limit their emissions from flying is growing exponentially, and this agreement means that United customers flying from Amsterdam, and potentially more airports, will be partners in our sustainability efforts." 

Neste will provide United with 2.5 million gallons of SAF in Amsterdam in the first year. United will also have the right to purchase up to 20 million gallons in the second year, and up to 30 million gallons in the third year, at Amsterdam or other locations that Neste can supply throughout the globe, as Neste increases its SAF production. 

This supply agreement is enabled by Neste's ambitious growth strategy, which will see the company producing 515 million gallons of SAF (1.5 million metric tons) per year by the end of 2023. Neste has been producing and delivering SAF since 2011 and has a proven track record of supplying SAF to customers in Europe, Asia and the Americas.

"We're excited to be partnering with United in this milestone purchase agreement and make our SAF available to United, also an industry leader in SAF investments," said Thorsten Lange, Executive Vice President, Renewable Aviation at Neste. "Our global, fast-growing SAF production and supply chain supports airlines and their customers in reducing greenhouse gas emissions. Neste is committed to helping aviation transition to a more sustainable future, and we look forward to expanding our cooperation with United."

SAF delivers the performance of conventional jet fuel but with a significantly smaller carbon footprint on a lifecycle basis. Neste's SAF reduces lifecycle greenhouse gas emissions ("GHG") by up to 80% compared to conventional jet fuel and burns cleaner than conventional jet fuel reducing non-CO₂ emissions, including particulate matter (PM). Neste MY Sustainable Aviation Fuel™ is produced from 100% sustainably sourced renewable waste and residue raw materials, including used cooking oil and animal fat waste.

United has aggressively pursued strategic investments in SAF producers and revolutionary technologies including carbon capture, hydrogen-electric engines, electric regional aircraft, and urban air mobility. United has invested in more SAF production than any other airline globally.

United's 100% green commitment

Here are some of the ways United plans to make sustainability the new standard in flight:

• In March, United invested in synthetic biology company Cemvita Factory for them to begin R&D efforts to bioengineer microbes with the express purpose of creating SAF.
• In December 2021, United purchased an equity stake in hydrogen-electric engine developer ZeroAvia, becoming the largest airline to invest in zero-emission engines for regional aircraft.
• In December 2021, United became the first in aviation history to fly an aircraft with passengers using 100% SAF.
• In September 2021, United agreed to purchase 1.5 billion gallons of SAF paired with an investment in Alder Fuels - enough to fly more than 57 million passengers.
• United is also an investor in Fulcrum BioEnergy, where United has an option to purchase up to 900 million gallons of SAF.
• In July 2021, United announced that along with Breakthrough Energy Ventures and Mesa Airlines, it invested in electric aircraft startup Heart Aerospace. Heart Aerospace is developing the ES-19, a 19-seat electric aircraft that has the potential to fly customers with zero emissions when powered by renewable electricity.
• In July 2021, Air Transport World magazine named United its Eco-Airline of the Year for the third time.
• In February 2021, United announced an agreement to work with Archer Aviation to accelerate the development and production of their electric aircraft – an urban mobility solution that has the potential to serve as an 'air taxi,' giving United customers another opportunity to reduce their carbon footprint before they even board a United flight.
• In 2019, United operated the Flight for the Planet, which at the time represented the most-eco-friendly commercial flight of its kind in the history of commercial aviation.
• In 2018, United became the first U.S. airline to commit to reducing its GHG emissions, by 50% by 2050. This goal has since been superseded by the airline's 100% green net zero commitment.
• In 2016, United became the first airline globally to use SAF in regular operations on a continuous basis with SAF from World Energy.

About United

United's shared purpose is "Connecting People. Uniting the World." In 2019, United and United Express® carriers operated more than 1.7 million flights carrying more than 162 million customers. United has the most comprehensive route network among North American carriers, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C.  For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc. is traded on the Nasdaq under the symbol "UAL".

About Neste

Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world's leading producer of sustainable aviation fuel and renewable diesel and developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce their greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. Our ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. We are introducing renewable and recycled raw materials such as liquefied waste plastic as refinery raw materials. We have committed to reaching carbon-neutral production by 2035, and we will reduce the carbon emission intensity of sold products by 50% by 2040. We also have set high standards for biodiversity, human rights and supply chain. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world's most sustainable companies. In 2021, Neste's revenue stood at EUR 15.1 billion. Read more: neste.com Follow Neste on twitter: @Neste_NA and on LinkedIn.

United Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about our future financial results, goals, plans, commitments, strategies and objectives and involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond our control and could cause our future financial results, goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. These risks, assumptions, uncertainties, and other factors include, among others, any delay or inability of United to realize the expected benefits of the transaction. No forward-looking statement can be guaranteed. Forward-looking statements in this press release should be evaluated together with the many risks and uncertainties that affect United's business and market, particularly those identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections in United's Annual Report on Form 10-K for the year ended December 31, 2021, as updated by our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. The forward-looking statements included in this document are made only as of the date of this document and except as otherwise required by applicable law or regulation, United undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise.

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SOURCE United Airlines

FAQ

What is United Airlines' recent agreement with Neste about?

United Airlines signed an agreement with Neste to purchase over 52.5 million gallons of sustainable aviation fuel (SAF) for flights starting from Amsterdam.

How much SAF will United Airlines purchase in the first year from Neste?

United will purchase 2.5 million gallons of SAF in the first year from Neste.

What are the future purchase amounts for SAF under the United and Neste agreement?

In the second year, United can purchase up to 20 million gallons, and in the third year, up to 30 million gallons.

What is the environmental impact of Neste's sustainable aviation fuel?

Neste's SAF reduces lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel.

When is United Airlines aiming to achieve its 100% green emissions goal?

United Airlines aims to reach its 100% green goal by 2050.