DALLAS, Feb. 28,
2024 /PRNewswire/ -- Southwest Airlines
Co. (NYSE: LUV) today announces the launch of Southwest
Airlines Renewable Ventures (SARV), a wholly-owned subsidiary of
Southwest Airlines® dedicated to creating more
opportunities for Southwest to obtain scalable sustainable aviation
fuel (SAF), a critical component in the success of the
carrier's goal to replace 10% of its total jet fuel consumption
with SAF by 2030. The carrier also announces a $30 million investment in LanzaJet, Inc., a SAF
technology provider and producer with a patented ethanol-to-SAF
technology and the world's first ethanol-to-SAF commercial plant,
as part of the SARV investment portfolio.
"Our launch of SARV and our investment in LanzaJet demonstrate
that we are not sitting on the sidelines. Rather, we're in the game
by taking proactive, disciplined steps toward securing affordable
SAF for Southwest, as we continue to march toward our goal of net
zero by 2050," said Bob Jordan,
President & CEO of Southwest Airlines. "We look forward to
working with companies and organizations developing important
technology, like LanzaJet, which could help us meet our SAF
goals."
Southwest will continue to work with SAF producers to enter into
SAF offtake agreements, while SARV will focus on managing
Southwest's SAF-related investments, including the carrier's
previously announced equity investment in SAFFiRE Renewables
(SAFFiRE). SAFFiRE has been working with the U.S. Department
of Energy's National Renewable Energy Laboratory (NREL) and has a
license agreement and certain exclusivity rights to this technology
for the production of cellulosic ethanol. This technology is an
important component in converting corn stover, a widely available
agricultural residue feedstock in the U.S., to cellulosic ethanol
that can then be converted to SAF using LanzaJet's technology.
Additionally, as part of its agreement with Southwest, LanzaJet
intends to build an ethanol-to-SAF facility to produce SAF
primarily for Southwest. The planned facility includes capabilities
to convert SAFFiRE's cellulosic ethanol into SAF, which can produce
greater quantities of SAF from SAFFiRE ethanol over time.
"SARV's goal is to help scale SAF through strategic investments,
better positioning Southwest to have access to high quality,
affordable SAF in accordance with the robust standards of
Southwest's SAF policy," said Tom
Nealon, President of SARV and CEO of SAFFiRE. "Through
SARV's investment in LanzaJet, we're also entering the next phase
in the commercialization of SAFFiRE technology, which is designed
to support the production of cellulosic ethanol that can be
converted to SAF."
"LanzaJet's ethanol-to-SAF technology represents the next
generation of sustainable aviation fuel and will transform global
aviation's ability to meet its 2050 net zero targets. We're proud
to be working with Southwest Airlines to build out this industry as
well as working with SAFFiRE Renewables to use ethanol made right
here in the U.S.," said Jimmy
Samartzis, CEO of LanzaJet. "Southwest's equity investment
in LanzaJet will help us continue to grow and scale to meet the
demands of the aviation industry, while unlocking the significant
potential of the U.S. biofuels industry to benefit local
communities and support the agriculture industry."
Securing additional SAF is a key pillar of Southwest's Nonstop
to Net Zero plan, which outlines the carrier's approach toward
sustainability through the strategic pillars of carbon,
circularity1, and collaboration to achieve a goal of net
zero carbon emissions by 2050.
For more on the carrier's environmental sustainability plan,
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 goals and focus
areas of Southwest Airlines Renewable Ventures; (ii) the Company's
goals with respect to SAF usage; (iii) the Company's expectations
regarding the pricing and affordability of SAF; (iv) the Company's
environmental sustainability plans, expectations, goals, and
projections; (v) the Company's expectations regarding working with
companies and organizations to develop technology; (vi) the
Company's expectations with respect to SAF offtake agreements;
(vii) the Company's expectations regarding SAFFiRE technology;
(viii) the Company's expectations with respect to LanzaJet and
Lanzajet technology; and (ix) the Company's expectations regarding
access to 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, 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 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.
1Circularity 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.