5 days ago
Southwest Steps Back from SAF Production, Passes SAFFiRE to Conestoga
Southwest Airlines has sold its renewable fuels subsidiary, SAFFiRE Renewables, to Conestoga Energy, a U.S. biofuels producer. The deal, whose terms were not disclosed, includes SAFFiRE's intellectual property, technology, leadership team, and plans for a Kansas pilot plant to produce sustainable aviation fuel (SAF).
The move marks a shift in Southwest's sustainability approach. Less than two years after acquiring full ownership of SAFFiRE, the airline will now remain only as an investor, aiming to advance the company's technology under Conestoga's leadership. SAFFiRE's process converts corn stover—an abundant U.S. agricultural residue—into renewable ethanol with a carbon intensity below -100, based on technology developed at the U.S. Department of Energy's National Renewable Energy Laboratory. This ethanol can then be refined into SAF.
The pilot plant will be integrated into Conestoga's ethanol facility in Liberal, Kansas, and is slated to start operations in 2026. Conestoga, which already produces over 200 million gallons of ethanol annually from facilities in Kansas and Texas, sees the acquisition as a chance to help bridge the SAF supply gap while creating new opportunities for U.S. agriculture.
Southwest remains committed to its goal of replacing 10% of its jet fuel use with SAF by 2030 and is pursuing multiple supply partnerships to achieve this target. SAF is viewed as a crucial tool for decarbonizing aviation, but current production remains small and costly compared to conventional fuel, limiting widespread adoption.
According to Conestoga CEO Tom Willis, SAF represents a multi-billion-dollar opportunity, and the addition of SAFFiRE's technology puts the company at the forefront of market expansion. The acquisition also ensures the continuation of the Kansas pilot project, which is essential for scaling production to commercial levels.
The aviation industry faces mounting pressure to cut carbon emissions, and SAF is considered one of the few near-term solutions. Yet without significant cost reductions and increased supply, achieving meaningful adoption will be challenging. Conestoga's bet on SAFFiRE reflects a broader industry push to accelerate SAF production capacity while leveraging advanced biofuel technologies.
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