14-03-2023

JetBlue and Shell Aviation sign new SAF agreement

JetBlue and Shell Aviation have announced a new agreement to bring additional supplies of sustainable aviation fuel (SAF) to Los Angeles International Airport (LAX).

Under the agreement, Shell Aviation will commence delivery of the SAF to LAX in the first half of 2023.

JetBlue is expected to take delivery of 10 million gallons of blended SAF at LAX over the next two years, with an option to purchase up to 5 million more gallons in the third year, either at LAX or at other airports in JetBlue’s network.

This additional SAF provided through Shell Aviation at LAX will increase the airline’s SAF supply at the airport to approximately 15% of JetBlue’s total LAX jet fuel uptake.

“This deal with Shell is a key signal of the growing engagement of the major fuel producers to begin converting conventional jet fuel to SAF,” said JetBlue CEO Robin Hayes.

“Shell’s involvement, with their expertise in energy markets and logistics, is a validation of the SAF market’s potential and highlights how critical the SAF transition of our hard-to-decarbonise industry is to establishing a more sustainable future of flight.”

Shell has announced its ambition to have 10% of its aviation jet fuel sales as SAF by 2030. In August 2022 the Oil and Gas multinational announced a similar agreement to deliver SAF to German flag carrier Lufthansa beginning in 2024.

“We’ve publicly committed to cutting our per-seat emissions in half by 2035, and a viable SAF market at scale is a key component to meet this goal,” said Sara Bogdan, JetBlue sustainability and ESG director.

“Working with Shell will not only help grow the availability of SAF in the long-term, but also ensure this transition is sustainable from a business perspective, by building the connections and infrastructure to help keep the cost of SAF competitive with traditional fuel.”

JetBlue has set a target of reaching net zero by 2040, 10 years earlier than industry targets. The company says it will continue to encourage a diverse and competitive SAF market and encourage the build-up of available supply and the economies of scale needed for SAF prices to compete with traditional fuel sources.

In 2021, JetBlue signed a memorandum of understanding with startup Air Company to buy 25 million gallons of SAF over five years.