United, Tallgrass, and Green Plains Form Joint Venture to Develop New Sustainable Aviation Fuel Technology Using Ethanol
(United Airlines/PR Newswire) United, Tallgrass, and Green Plains will invest up to a combined $50 million in the joint venture – Blue Blade Energy – to develop the technology; United has entered into an offtake agreement with Blue Blade Energy for up to 135 million gallons of ethanol based SAF annually and up to 2.7 billion gallons in total; United has invested in more SAF production than any other airline
United Airlines, Tallgrass, and Green Plains Inc. today announced a new joint venture – Blue Blade Energy – to develop and then commercialize a novel Sustainable Aviation Fuel (SAF) technology that uses ethanol as its feedstock. If the technology is successful, Blue Blade is expected to proceed with the construction of a pilot facility in 2024, followed by a full-scale facility that could begin commercial operations by 2028. The offtake agreement could provide for enough SAF to fly more than 50,000 flights annually between United’s hub airports in Chicago and Denver.*
Blue Blade’s new SAF technology was developed by researchers at the U.S. Department of Energy’s Pacific Northwest National Laboratory (PNNL), a leading center for technological innovation in sustainable energy. SAF, which uses non-petroleum feedstock, is a low-carbon alternative to traditional jet fuel that offers up to 85%** lower lifecycle greenhouse gas emissions.
“The production and use of SAF is the most effective and scalable tool the airline industry has to reduce carbon emissions and United continues to lead the way,” said United Airlines Ventures President Michael Leskinen. “This new joint venture includes two expert collaborators that have the experience to construct and operate large-scale infrastructure, as well as the feedstock supply necessary for success. Once operational, Blue Blade Energy has the potential to create United’s largest source of SAF providing up to 135 million gallons of fuel annually.”
United, Tallgrass, and Green Plains will each provide their unique industry expertise to help develop the joint venture. Under this collaborative approach:
- Tallgrass will manage research and development of the technology, including pilot plant development, and will manage the construction of the production facility.
- Green Plains will supply the low-carbon ethanol feedstock, and use its ethanol industry expertise to manage operations once the pilot facility is constructed.
- United Airlines will assist with SAF development, fuel certification and into-wing logistics, and has also agreed to purchase up to 2.7 billion gallons of SAF produced from the joint venture.
“At Tallgrass, we are striving to innovate how we deliver the energy that powers our nation and enables our quality of life,” said Alison Nelson, Vice President, Business Development at Tallgrass. “Air travel uniquely connects people and improves lives, and the advancement of this novel SAF technology presents a meaningful opportunity to reduce emissions from aviation. We are excited to partner with industry leaders United Airlines and Green Plains on this initiative.”
If the technology is commercialized, the location of Blue Blade’s initial plant would allow easy access to low-carbon feedstock from Green Plains’ Midwest ethanol production facilities. While the initial SAF facility intends to use ethanol, the technology has the capability to work with any alcohol-based feedstock as its fuel source.
“Our transformation to a true decarbonized biorefinery model has positioned Green Plains to help our customers and partners reduce the carbon intensity of their products by producing low-carbon proteins, oils, sugars and now decarbonized ethanol to be used in SAF,” said Todd Becker, President and CEO of Green Plains. “This partnership with world class organizations like United Airlines and Tallgrass, shows the value creation that is possible with our low-carbon platform. The potential impact of this project is a gamechanger for US agriculture, aligning a strong farm economy and a robust aviation transport industry focused on decarbonizing our skies.”
Blue Blade Energy marks one of the largest direct investments from United Airlines Ventures (UAV), United’s corporate venture arm, into SAF. Launched in 2021, UAV targets startups, upcoming technologies, and sustainability concepts that will complement United’s goal of net zero emissions by 2050 without relying on traditional carbon offsets. United has aggressively pursued strategic investments in SAF producers and revolutionary technologies including carbon capture, hydrogen-electric engines, electric regional aircraft and air taxis.
*Assuming current regulations requiring SAF to be blended with conventional jet fuel are removed to allow for the use of unblended SAF.
**Based on United’s current SAF supply
United’s shared purpose is “Connecting People. Uniting the World.” From our U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers. United is bringing back our customers’ favorite destinations and adding new ones on its way to becoming the world’s best airline. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol “UAL”. For further information about our environmental impact, review United’s Corporate Responsibility Report and Annual Report on Form 10-K, available at crreport.united.com and ir.united.com.
Tallgrass is a leading energy infrastructure company focused on safely, reliably and sustainably delivering the energy and services that fuel homes and businesses and enable quality of life. We are committed to being at the forefront of efforts to decarbonize our world. An investor group led by Blackstone Infrastructure Partners, which includes Enagás SA, GIC, NPS and USS, owns the outstanding equity interests in Tallgrass. Learn more at Tallgrass.com.
Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low-carbon biofuels, renewable feedstocks for advanced biofuels and high-purity alcohols for use in cleaners and disinfectants. Green Plains is an innovative producer of Ultra-High Protein and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. The Company also owns a 48.8% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information, visit www.gpreinc.com. READ MORE
United Airlines’ new partnership could power 50,000 flights with sustainable aviation fuel (USA Today)
AGREEMENT WITH UNITED AIRLINES, BIOFUEL COMPANIES COULD RAMP UP SAF PRODUCTION (Brownfield Ag News)
That’s not Banana, it’s a new path to SAF: United, Tallgrass, Green Plains form Blue Blade to make billion and billions of gallons of sustainable aviation fuel (Biofuels Digest)
United Airlines’ new partnership could power 50,000 flights with sustainable aviation fuel (USA Today)
Blue Blade Energy: A Joint Venture Between United Airlines, Tallgrass & Green Plains Inc. (Environment + Energy Leader)
United, Tallgrass and Green Plains partner on ethanol-based SAF (Biomass Magazine)
Excerpt from Biofuels Digest: Yes, one intermediate smells like banana, and the other is found in blue cheese. But this is not a story about banana blue cheese crescent rolls for the snack for the flight to the Coast, and the Blue in Blue Blade has likely nothing to do with cheese. it’s about big partners chasing big tech at big scale to solve a big problem, Namely diversifying SAF feedstock to get the costs down and the volumes up.
…
Blue Blade’s new SAF technology was developed by researchers at the U.S. Department of Energy’s Pacific Northwest National Laboratory, uses non-petroleum feedstock, is a low-carbon alternative to traditional jet fuel that offers up to 85% lower lifecycle greenhouse gas emissions.
It’s been under development, the tech, for some time, by the partners, this foray into ketone intermediates. In September, we reported that Green Plains Inc., Tallgrass, and PNNL were awarded funding from the U.S. Department of Energy (DOE) to support demonstration of an innovative process developed by PNNL to convert ethanol to SAF via ketone intermediates, a critical step in proving the scalability of the technology. Green Plains and Tallgrass currently hold the option to exclusively license the PNNL SAF technology globally.
Green Plains has been hard at work with Tallgrass. We reported in December that Green Plains Inc, Tallgrass and Osaka Gas USA, a wholly owned subsidiary of Japan-based Osaka Gas, announced the commencement of a joint feasibility study to evaluate the production of up to 200,000 tons per year of synthetic methane in the U.S. Midwest. The project partners aim to produce synthetic methane from low-carbon hydrogen and biogenic carbon dioxide (CO2) captured from ethanol biorefineries owned and operated by Green Plains. The joint study, which is scheduled to be complete in mid-2023, will focus on the production of low-carbon hydrogen that incorporates the capture and permanent sequestration of at least 95% of the fossil-based CO2, coupled with the methanation of low-carbon hydrogen with biogenic CO2 from fermentation.
And, Tallgrass has been hard at work elsewhere. Last May we reported that Tallgrass entered into an agreement with ADM that would pave the way for Tallgrass to capture CO2 from ADM’s corn-processing complex in Columbus, Neb., and transport it to Tallgrass’ Eastern Wyoming Sequestration Hub for permanent underground storage. By utilizing a converted natural gas pipeline for CO2 transportation, Tallgrass minimizes the need for new pipeline infrastructure while enabling ADM, a global leader in sustainable products, to further decarbonize its global operations and strengthen Nebraska’s agriculture industry.
Beyond corn ethanol? 2G opportunities?
Yes, 2G is in there. The partners say they will jointly pursue the production of SAF from cellulosic and corn ethanol — in addition to commercializing PNNL’s production process upon successful completion of the pilot project.
…
As we reported in November 2020, scientists at Pacific Northwest National Laboratory (PNNL) have developed a novel catalyst that converts ethanol into C5+ ketones that can serve as building blocks for everything from solvents to jet fuel. In a new paper, they describe this breakthrough chemistry and the mechanism behind it. What’s the secret? The catalyst developed at PNNL condenses multiple reactions into a single step. Ethanol meets the catalyst under high temperature (370°C, or 698°F) and pressure (300 pounds per square inch). It then rapidly converts to products containing more than 70 percent C5+ ketones. The catalyst even at that stage appeared robust, remaining stable over 2,000 hours of use.
What did they make? 2-pentanone and/or 2-heptanone. The former, it occurs naturally in tobacco and blue cheese. The latter, smells like banana, and rats pee it out when stressed, by the way, and bees excrete it when on the attack. Just in case you ever smelled a banana right before a bee sting, and thought to yourself, Eureka!, a path to sustainable jet fuel. Or not. READ MORE