JetBlue (NASDAQ: JBLU) has signed a 10-year renewable fuel purchase agreement with SG Preston, the company said.
The airline is purchasing renewable jet fuel made from renewable, bio-based feedstocks that do not compete with food production. This marks a renewable jet fuel purchase agreements with a long-term, binding commitment for HEFA (hydro-processed esters and fatty acids) based renewable jet fuel.
Renewable jet fuel is produced from biological resources, like plant matter, which can be replenished without impacting food supply. With SG Preston, JetBlue is creating renewable jet fuel that has the ability to benefit the airline´s bottom line while also lowering its net CO2 emissions.
To launch the strategic relationship with SG Preston, JetBlue plans to purchase more than 33 million gallons of blended jet fuel per year for at least 10 years. The fuel will consist of 30 percent renewable jet fuel blended with 70 percent traditional Jet-A fuel. The renewable jet fuel portion produced from select plant oils is targeted to achieve a 50% or higher reduction in greenhouse gases emissions per gallon based on a life-cycle analysis.
JetBlue is an air carrier based in New York and serving Boston, Fort Lauderdale/Hollywood, Los Angeles (Long Beach), Orlando and San Juan. JetBlue carries more than 32 million customers a year to 97 cities in the UX, Caribbean, and Latin America with an average of 925 daily flights.
SG Preston is a bioenergy leader unlocking the potential of renewable biomass through an intelligent and integrated logistics and product development system.