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JetBlue signs long term biofuel deal
Saturday, 20 Sep, 2016
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JetBlue has signed a deal to purchase more than 330 million gallons of renewable biofuel over the next decade.
It is be one of the largest purchase agreements yet for the commercial airline industry, the carrier says.
It has struck a deal with bioenergy company SG Preston for the consignment which represents about 4% of all fuel required throughout its network.
"It’s thinking long term about our biggest cost, but its primary motivation is to reduce our greenhouse gases. What we really want to do is jump-start the industry and quite frankly enable all airlines, very much ourselves included, to diversify our fuel supply," said Sophia Mendelsohn, JetBlue’s head of sustainability.
"Brands like JetBlue have recognized that sustainability and the environment need to be part of the overall brand story. JetBlue and contracts like JetBlue’s offer us a completion to our overall credit profile for building these facilities," said Randy Delbert LeTang, chief executive of Philadelphia based SG Preston.
While current low oil prices have stymied motivation to explore alternative green options in the industry, a number of major carriers are testing renewable fuels.
United airlines last year began using a blended biofuel on some services out of Los Angeles.
Airlines including Lufthansa, South African Airways and Virgin Atlantic have signed deals to purchase biofuels or have tested renewable jet fuel developed from organic matter.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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