United Takes $30 Million Stake in Biofuels Firm | Aviation International News

Sustainability and Environment

United Takes $30 Million Stake in Biofuels Firm

Airline plans to participate in as many as five projects near its hubs

United obtained carbon credits offsets for all passengers and crew on every flight performed by a specially painted Boeing 737-900ER in April under its EcoSkies CarbonChoice program. (Photo: United Airlines)

By Gregory Polek • Senior Editor

July 1, 2015

United Airlines has taken a $30 million equity investment in California-based biofuels supplier Fulcrum BioEnergy, the companies announced Tuesday. The deal marks the single largest investment by a U.S. airline and calls for United and Fulcrum to collaborate on as many as five projects located near the airline’s hubs that would produce up to 180 million gallons of fuel per year. United has also negotiated a long-term supply agreement with Fulcrum that offers it the option to buy at least 90 million gallons of sustainable aviation fuel a year for a minimum of 10 years at a cost the companies characterize as “competitive” with conventional jet fuel. Fulcrum expects its first alternative fuels plant to begin commercial operation in 2017.

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