Southwest Airlines announced the launch of Southwest Airlines Renewable Ventures (SARV), a new subsidiary responsible for managing the airline’s sustainable aviation fuel (SAF) investments, and creating opportunities for the company to obtain SAF to reach its clean fuel goals.

The company also announced a new $30 million investment in SAF technology startup LanzaJet, which will form part of the SARV portfolio. Launched in 2020 by carbon recycling technology company LanzaTech, Illinois-based LanzaJet has developed “Alcohol-to-Jet” technology enabling the creation of SAF and renewable diesel from waste-based and sustainable ethanol sources including feedstocks such as low-carbon sugarcane, energy crops, forest residuals, agricultural wastes, and organic waste.

Bob Jordan, President & CEO of Southwest Airlines, said:

“Our launch of SARV and our investment in LanzaJet demonstrate that we are not sitting on the sidelines. 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. We look forward to working with companies and organizations developing important technology, like LanzaJet, which could help us meet our SAF goals.”

The launch of the new SAF investment business follows the release in November by Southwest of its updated sustainability strategy, “Nonstop to Net Zero.” Southwest’s climate goals include achieving net zero emissions by 2050, and reducing emissions intensity by 25% by 2030 and 50% by 2035. The strategy also includes a target to replace 10% of its total jet fuel consumption with SAF by 2030.

In 2022, Southwest invested in SAFFiRE Renewables, a company aimed at piloting and commercializing technology for the production of low-cost sustainable aviation fuel, and formed as part of a Department of Energy (DOE)-backed project to develop and produce scalable SAF, which will also be held by SARV. SAFFiRE has a license agreement for technology used in converting corn stover, a widely available agricultural residue feedstock, into cellulosic ethanol, which can be used to produce SAF utilizing LanzaJet’s technology.

Jimmy Samartzis, CEO of LanzaJet said:

“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.”

As part of its agreement with Southwest, LanzaJet intends to build an ethanol-to-SAF facility to produce SAF primarily for Southwest, which will include capabilities to convert SAFFiRE’s cellulosic ethanol into SAF.

Tom Nealon, President of SARV and CEO of SAFFiRE said:

“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. Through SARV’s investment in LanzaJet, we’re also entering the next phase in the commercialization of SAFFiRE technology, which is designed to support the production of cellulosic ethanol that can be converted to SAF.”