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.

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. 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 Executive Vice President and General Counsel Brett Hart

The Fulcrum process begins with the gasification of the organic material in the MSW feedstock to a synthesis gas (syngas) which consists primarily of carbon monoxide, hydrogen and carbon dioxide. This syngas is purified and processed through the Fischer-Tropsch (FT) process to produce a syncrude product which is then upgraded to jet fuel or diesel.

Fulcrum’s renewable jet fuel is expected to provide a greater than 80% reduction in lifecycle carbon emissions when compared to conventional jet fuel.

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 US Air Force and US Navy for the future production of fuel that meets military specifications.

United is the first US 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.

• In 2009, United was the first North American carrier to perform a two-engine aircraft demonstration flight using sustainable biofuels.

• In 2011, United operated the first US passenger flight powered by advanced biofuels made from algae.

• In 2012, United spearheaded the Midwest Aviation Sustainable Biofuel Initiative (MASBI), a public/private partnership of experts from across the Midwest Region, to accelerate the commercialization of advanced biofuels for aviation.

• In 2013, United announced an agreement with AltAir Fuels for advanced aviation biofuels to be used on flights out of the airline’s Los Angeles hub, making it the first US carrier to execute a commercial scale agreement for aviation biofuels. United expects to begin regularly scheduled flights using AltAir’s fuel later this year.

• In 2015, United received the World Bio Markets (WBM) Award for Excellence in Advanced Biofuels.

United Airlines and United Express operate an average of nearly 5,000 flights a day to 373 airports across six continents. In 2014, United and United Express operated nearly two million flights carrying 138 million customers.