Skift Take

Delta already owns a refinery and now United is investing a lot of money in a biofuels producer in a sign that airlines are trying to increase their control over one of their highest fixed costs.

United Airlines is investing $30 million in a company that makes biofuels for airplanes.

United said Tuesday that the investment in Fulcrum BioEnergy Inc. could provide it with up to 180 million gallons of fuel per year.

That’s just a drop in United’s fuel consumption — the Chicago airline burned 3.9 billion gallons last year — and the investment is a tiny fraction of United’s $1.1 billion profit last year.

Still, United Continental Holdings Inc. says it’s the biggest single investment in biofuels by a U.S. airline.

Pressure is building on airlines to reduce carbon emissions from burning oil-based jet fuel. The Obama administration has taken early steps toward limiting emissions, following the lead of an international aviation authority.

This article was written by The Associated Press from The Associated Press and was legally licensed through the NewsCred publisher network.

November 16, 2022
Dallas-Fort Worth, TX and Online
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Tags: biofuels, climate change, united airlines

Photo credit: United wants to lower its carbon emissions and has invested in a biofuels manufacturer. United Airlines