DALLAS, March 28,
2024 /PRNewswire/ -- Southwest Airlines
Co. (NYSE: LUV) announces the acquisition of SAFFiRE
Renewables, LLC (SAFFiRE) as part of the investment portfolio
of its wholly owned subsidiary Southwest Airlines Renewable
Ventures, LLC (SARV). SARV is dedicated to creating more
opportunities for Southwest® to obtain scalable
sustainable aviation fuel (SAF).
SAFFiRE is part of a project supported by the Department of
Energy (DOE) to develop and produce scalable renewable ethanol that
can be upgraded into SAF. SAFFiRE expects to utilize technology
developed at the DOE's National Renewable Energy Laboratory (NREL)
to convert corn stover, a widely available agricultural residue
feedstock in the U.S., into renewable ethanol.
"This acquisition marks Southwest's transition from investor to
sole owner of SAFFiRE, expressing our confidence in SAFFiRE's
technology and its potential to advance our sustainability goals as
well as the goals of the broader industry," said Bob Jordan, President & CEO of Southwest
Airlines. "Championing SAF is a key pillar of Southwest's Nonstop
to Net Zero plan and our work toward a more sustainable future for
air travel. We look forward to continuing our journey with SAFFiRE
as part of our efforts to propel this promising technology
forward."
Southwest first invested in SAFFiRE during phase one of the
pilot project in 2022. With this acquisition, SAFFiRE is expected
to proceed with phase two of the project by developing a pilot
plant hosted at Conestoga's Arkalon Energy ethanol facility in
Liberal, Kansas. Initially, this
plant is intended to utilize SAFFiRE's exclusive technology license
from NREL to process 10 tons of corn stover per day for the
production of renewable ethanol. Then, the plan is for the ethanol
to be converted into SAF by LanzaJet, Inc. (LanzaJet).
"Renewable ethanol is an important feedstock to realizing
high-volume, affordable SAF, which is a critical part of the
journey to net zero carbon emissions," said Tom Nealon, President of SARV and CEO of
SAFFiRE. "We are enthusiastic about the ethanol-to-SAF pathway and
SAFFiRE's potential ability to produce renewable ethanol at a scale
that is economically viable."
The acquisition of SAFFiRE comes shortly after Southwest
announced an investment in LanzaJet, a SAF technology provider
and producer with a patented ethanol-to-SAF technology and the
world's first ethanol-to-SAF commercial plant.
For more on Southwest's Nonstop to Net Zero plan outlining the
carrier's path toward net zero carbon emissions by 2050 and a more
sustainable future through carbon, circularity1, and
collaboration, visit southwest.com/planet.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This news release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Specific forward-looking statements include,
without limitation, statements related to (i) the Company's plans
associated with the management of SAFFiRE; (ii) the goals and focus
areas of Southwest Airlines Renewable Ventures LLC and SAFFiRE
Renewables LLC; (iii) Southwest's and SAFFiRE's expectations
regarding SAFFiRE technology; (iv) Southwest's environmental
sustainability plans, expectations, goals, and projections; (v)
Southwest's and SAFFiRE's plans and expectations associated with
the development and utilization of a pilot plant, as well as
expectations with respect to the capabilities of the expected
plant; (vi) Southwest's and SAFFiRE's expectations with respect to
technology license usage; (vii) Southwest's and SAFFiRE's plans and
expectations associated with the conversion of ethanol into SAF;
and (viii) the plans, goals, and expectations of SARV, SAFFIRE, and
Southwest associated with the available volume of SAF and the
affordability of SAF. Forward-looking statements involve risks,
uncertainties, assumptions, and other factors that are difficult to
predict and that could cause actual results to vary materially from
those expressed in or indicated by them. Factors include, among
others, (i) any negative developments in any phase of SAFFiRE's
business development from current concept to commercialization,
including limitations on the availability of feedstock,
transportation, and refinery availability; (ii) any negative
developments in any phase of LanzaJet's business development; (iii)
the continuation of government support for SAFFiRE's and LanzaJet's
objectives and renewable fuels generally, including SAF; (iv) the
Company's dependence on third parties, in particular with respect
to fuel supply, technology licensing, environmental sustainability,
and the production, transport, storage, blending, and distribution
of SAF, and the impact on the Company's goals and plans of any
third party delays or non-performance; (v) the Company's ability to
timely and effectively prioritize its focus areas and initiatives
and related expenditures, including its ability to implement and
maintain the necessary processes to support the utilization of
sustainable aviation fuel; (vi) the consequences of competition
with other existing and new sources of aviation fuel, whether or
not sustainable; (vii) the ability to obtain and protect
intellectual property rights relating to the development and
commercialization of technology, including with respect to
converting corn stover to renewable ethanol and converting ethanol
to SAF; (viii) the impact of governmental regulations and other
governmental actions on the Company's business plans and
operations, including with respect to carbon emissions, SAF, SAF
tax credits, environmental compliance requirements, and other
sustainability matters; (ix) the impact of fears or actual
outbreaks of diseases, extreme or severe weather and natural
disasters, actions of competitors, consumer perception, economic
conditions, fuel prices, socio-demographic trends, and other
factors beyond the Company's control, on the Company's business
plans, expectations, and goals; and (x) other factors, as described
in the Company's filings with the Securities and Exchange
Commission, including the detailed factors discussed under the
heading "Risk Factors" in the Company's Annual Report on Form 10-K
for the fiscal year ended December 31,
2023. Caution should be taken not to place undue reliance on
the Company's forward-looking statements, which represent the
Company's views only as of the date this release. The Company
undertakes no obligation to update publicly or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise.
ABOUT SOUTHWEST AIRLINES CO.
Southwest Airlines Co. operates one of the world's most
admired and awarded airlines, offering its one-of-a-kind value and
Hospitality at 121 airports across 11 countries. Southwest took
flight in 1971 to democratize the sky through friendly, reliable,
and low-cost air travel and now carries more air travelers flying
nonstop within the United States
than any other airline2. Based in Dallas and famous for an Employee-first
corporate Culture, Southwest maintains an unprecedented record of
no involuntary furloughs or layoffs in its history. By empowering
its nearly 75,0003 People to deliver unparalleled
Hospitality, the maverick airline cherishes a passionate loyalty
among more than 137 million Customers carried in 2023. That formula
for success brought industry-leading prosperity and 47 consecutive
years4 of profitability for Southwest
Shareholders (NYSE: LUV). Southwest leverages a unique legacy and
mission to serve communities around the world including harnessing
the power of its People and Purpose to put communities at the Heart
of its success. Learn more by visiting
Southwest.com/citizenship. As the airline with Heart,
Southwest has set a goal to work toward achieving net zero carbon
emissions by 2050. Southwest has also set near-term targets and a
three-pillar strategy to achieve its environmental goals. Learn
more by visiting Southwest.com/planet.
1. Circularity at Southwest means working toward reducing waste
through maximizing the value of resources by keeping products and
materials in circulation as long as possible. This can be through
reusing, recycling, and considering what happens to a product at
the end of its lifecycle from the time that sourcing begins.
2Based on U.S. Dept. of Transportation
quarterly Airline Origin & Destination Survey since Q1
2021
3Fulltime-equivalent active
Employees
41973-2019 annual
profitability
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SOURCE Southwest Airlines Co.