JetBlue enters 10-year renewable jet fuel purchase deal

US company JetBlue Airways Corp (NASDAQ:JBLU) said Monday it has agreed a 10-year deal to buy renewable jet fuel from US bioenergy company SG Preston.

JetBlue says this is the largest, long-term, binding commitment by any airline globally for hydro-processed esters and fatty acids-based (HEFA) renewable jet fuel. Under the purchase agreement, the company will be buying over 33 million gallons (125 million litres) of blended jet fuel per year that contains 30% renewable jet fuel and 70% traditional Jet-A fuel.

In its blended form, the total amount of renewable jet fuel to be purchased would be enough to meet about 20% of JetBlue's annual fuel consumption at New York John F Kennedy International Airport (JFK). The renewable jet fuel portion is expected to achieve a 50% or higher reduction in greenhouse gas (GHG) emissions per gallon based on a life-cycle analysis.

“This is just one step of many in our work towards a lower carbon future,” said Robin Hayes, president and CEO of JetBlue.

JetBlue business partners have tested the type of renewable jet fuel associated with the SG Preston deal and qualified it for use in 2011. The company noted that more than 2,200 commercial flights by 22 airlines have flown on different types of renewable jet fuel to date, many of which used the HEFA-SPK type fuel to be produced by SG Preston.

Other US companies such as United, FedEx, Southwest Airlines and Alaska have also struck purchase agreements for alternative jet fuel.

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