Southwest Airlines Co. (NYSE: LUV) has announced a deal with Valero Energy Corporation (NYSE: VLO) to produce and supply sustainable aviation fuel (SAF) for the airline’s Chicago Midway International Airport operations. The agreement marks Southwest’s largest SAF supply contract to date and is expected to reduce the airline’s carbon emissions by approximately 150,000 metric tons annually. Valero’s Port Arthur, Texas, refinery will produce the fuel using renewable feedstocks. The partnership is part of Southwest’s commitment to reduce its carbon footprint and achieve carbon neutrality by 2050.
