Southwest Airlines invests $30 million in LanzaJet

Southwest Airlines Co. announced Feb. 28 the launch of Southwest Airlines Renewable Ventures, a wholly owned subsidiary of Southwest Airlines dedicated to creating more opportunities for Southwest to obtain scalable sustainable aviation fuel (SAF).

The airline has a goal to replace 10 percent of its total jet fuel consumption with SAF by 2030.

The carrier also announces a $30 million investment in SAF technology provider and producer LanzaJet Inc. whose patented ethanol-to-SAF technology is on display in the world’s first ethanol-to-SAF commercial plant in Soperton, Georgia, which opened in January.

“Our launch of SARV and our investment in LanzaJet demonstrate that we are not sitting on the sidelines,” said Bob Jordan, president and CEO of Southwest Airlines.

“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,” Jordan added.

“We look forward to working with companies and organizations developing important technology, like LanzaJet, which could help us meet our SAF goals,” he said.

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.  

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 cellulosic ethanol into SAF.

“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 SARV President Tom Nealon, president of SARV.

Jimmy Samartzis, CEO of LanzaJet, added, “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. 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, circularity and collaboration to achieve a goal of net-zero carbon emissions by 2050.