United Airlines purchases stake in Fulcrum BioEnergy with $30 million investment

Published on : Wednesday, July 1, 2015

United AirlinesUnited Airlines today announced an historic $30 million equity investment in U.S.-based alternative fuels developer Fulcrum BioEnergy, Inc., a pioneer in the development and commercialization of converting municipal solid waste into low-cost sustainable aviation biofuel. It is also the single largest investment by a U.S. airline in alternative fuels and sets United apart in the aviation industry in the advancement of aviation biofuels and carbon emissions reductions. In addition to the equity investment, United and Fulcrum have entered into an agreement that contemplates the joint development of up to five projects located near United’s hubs expected to have the potential to produce up to 180 million gallons of fuel per year.

 

 

“We know alternative fuels is an emerging industry that is vital to the future of aviation and this is just one of our initiatives to help make these fuels saleable and scalable,” said United’s Executive Vice President and General Counsel Brett Hart. “Investing in alternative fuels is not only good for the environment, it’s a smart move for our company as biofuels have the potential to hedge against future oil price volatility and carbon regulations.”

 

 

United has also negotiated a long-term supply agreement with Fulcrum and, subject to availability, will have the opportunity to purchase at least 90 million gallons of sustainable aviation fuel a year for a minimum of 10 years at a cost that is competitive with conventional jet fuel. This alternative fuel will be a drop-in fuel that meets all of the airline’s technical requirements and specifications, and will power the aircraft in the same way as conventional jet fuel. Fulcrum expects its first alternative fuels plant to begin commercial operation in 2017.

 

 

Fulcrum’s Waste-to-Biofuel Technology

Fulcrum’s technology converts household trash, known as municipal solid waste (MSW), into renewable jet fuel. Fulcrum’s renewable jet fuel is expected to provide a greater than 80 percent reduction in lifecycle carbon emissions when compared to conventional jet fuel.

 

Fulcrum
has successfully developed and proven its technology to convert MSW into low-cost, low-carbon transportation fuels in an innovative, clean and efficient thermochemical process. MSW is an attractive biofuel feedstock as it is low cost, has limited volatility and a virtually unlimited supply. United’s agreement with Fulcrum is expected to decrease the airline’s carbon footprint through the use of sustainable aviation biofuel, while also diverting waste from landfills and creating new jobs in those communities where new Fulcrum facilities are sited. Fulcrum’s projects have also received support and participation from the U.S. Air Force and U.S. Navy for the future production of fuel that meets military specifications.

 

 

“This partnership underscores United’s efforts to be a leader in alternative fuels as well as our efforts to lead commercial aviation as an environmentally responsible company,” said United’s Managing Director for Environmental Affairs and Sustainability Angela Foster-Rice. “From our carbon offset program to our fuel saving winglet technology, this investment in Fulcrum represents yet another example of our Eco-Skies commitment to a more sustainable future.”

 

 

“United Airlines just demonstrated why they are one of the leaders in commercial aviation,” said E. James Macias, Fulcrum’s President and Chief Executive Officer. “United’s investment and participation in our projects is a tremendous boost to our program. Their support, commitment and backing accelerate our schedule to bring large volumes of competitively-priced, sustainable fuels to United and the rest of the aviation industry.”

 

 

United’s Track Record in Aviation Biofuels

United is the first U.S. airline to invest in a biofuel company. It is another in a series of firsts for the airline which, since 2009, has made significant investments in the advancement of sustainable aviation biofuels.

 

 

 

Source:- United

Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

arrow2Follow TTW
 
facebook-logo  twitter-logo  LinkedIn_logo  stumbleupon-logo   rss_logo 
ttw_blogger_logo  ttw_blogger_logo  ttw_blogger_logo

ADVERTISEMENT

  • 01 AIME 2018 BB
  • 02 WTM 2017
  • 03 EMITT 2018
  • 04 AIME-2018 small
  • 05 iitmindia 2017
  • 06 imtm 2018
  • 06 TTF-Surat 2017
  • 07 balttour 2018
  • 08 OTM 2018
  • 30 PATA

TRAVEL INDUSTRY EVENTS

Get our toolbar!
Review www.travelandtourworld.com on alexa.com