U.S. Sustainable Aviation Fuel Market

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U.S. Sustainable Aviation Fuel Market: Partnerships

Neste's key partnerships include those with Salesforce and McCall Companies, World Fuel Services has key partnerships with Gulfstream Aerospace and AWS, and SG Preston has such partnerships with JetBlue and Qantas. Below, as well as in column F, rows 2-6, of the attached spreadsheet, are descriptions of key partnerships for each sustainable aviation fuel competitor identified in column A.

Neste and Salesforce

  • To achieve up 80% reduction in the greenhouse gas emissions generated from its annual Dreamforce Conference, which held in San Francisco in November 2019, Salesforce partnered with Neste. It used Neste's premium diesel fuel, Neste MY Renewable Diesel, in over 25 of its shuttle buses.
  • Salesforce's Dreamforce is the biggest software conference in the world, with over 171,000 registered attendees as well as 13 million online viewers in downtown San Francisco.

Neste and McCall Companies

  • McCall Companies entered an exclusive partnership with Neste's US subsidiary, Neste US Inc. Through this partnership, Neste MY Renewable Diesel is now available to fleet owners in Oregon, in line with the goal of Oregon lawmakers to reduce carbon emissions and increase the performance of fleets in the state.
  • The partnership marks the first time Neste MY Renewable Diesel is available in Oregon, with McCall Companies being its first distributor in the Northwest.

World Fuel Services and Gulfstream Aerospace Corporation

  • Gulfstream Aerospace uses a blend of 30% low-carbon fuel and 70% traditional Jet-A fuel. Through a partnership, World Fuel Services manages logistics and distribution of renewable fuel to Gulfstream Aerospace on both US coasts.
  • As of December 2019, Gulfstream's Savannah-based fleet had flown over a million nautical miles on sustainable aviation fuel. This implies that World Fuel Services' partnership with the company is significant.

World Fuel Services and AWS

  • Due to exceptional growth, World Fuel Services' technology stack consisted of many different solutions and tools, running in its 20 data centers across the globe. The company then decided to adopt cloud computing and DevOps to rationalize and cut down the number of separate environments and tools, and also stimulate the delivery of innovative new products and features, choosing AWS as its cloud partner.
  • According to World Fuel Services' application development leader, its reason for choosing AWS is that Amazon has been more than a vendor for the company. The partnership is in line with World Fuel Services' mantra of forming alliances with companies from which it can learn.

SG Preston and JetBlue

  • In 2016, JetBlue entered a ten-year partnership agreement with SG Preston to buy renewable jet fuel at New York JFK airport. The plan is to purchase over 125 million liters of blended jet fuel (30% renewable jet fuel + 70% traditional Jet-A fuel) annually for at least ten years.
  • The partnership is considered key based on the tenure of the deal, and the amount of renewable jet fuel involved over the period. At the time of the agreement, it was considered "one of the largest renewable jet fuel purchase agreements in aviation history."

SG Preston and Qantas

  • SG Preston entered an agreement with Qantas to power its Los-Angeles-Australia flights with 50% renewable jet fuel, beginning from 2020. The plan is for Qantas to purchase 30 million liters of renewable jet fuel annually from SG Preston over the next ten years in line with its commitment to reduce its carbon emissions.
  • This commercial biofuel agreement is critical because, according to Gareth Evans, CEO of Qantas International and Freight, it is the first time such a deal is happening in Australian aviation history.

Gevo Inc. and US Dairies

  • In January this year, Gevo partnerships with three US dairies to supply manure, which it will convert to renewable natural gas. Collectively, the three dairies will are expected to generate about 350,000 MMBTU biogas annually, which would either be sold to off-takers or used at the advanced biofuel production facility of its Luverne, Minnesota affiliate, Agri-Energy LLC.
  • Together with wind power, these partnerships are in line with Gevo's goal of reducing and eliminating the fossil footprint emanating from the Luverne facility.
  • According to Patrick R. Gruber, the company's CEO, the three dairy farms represent "phase one of the biogas cluster," which will eventually consist of a system of 8-10 total farms.

Gevo Inc. and Leaf Resources

  • Gevo entered a joint development agreement with Leaf Resources aimed at exploring Gevo's potential use of Leaf Resources' cellulosic-derived sugars and glycerol and its ability to transform these sugars to hydrocarbon molecules for use as fuels or chemicals. Phase one of the three-phase agreement will involve developing the feasibility of a potential facility, with the other phases involving an investigation of the commercial development and the project's commercialization.
  • The partnership is significant because Leaf Resources is one of the foremost companies that convert plant biomass into industrial sugars in the world.

Honeywell UOP and Jizzakh Petroleum

  • Honeywell UOP is in a partnership with Jizzakh Petroleum that allows Jizzakh Petroleum to use Honeywell UOP technologies to construct its new refinery, which would have the capacity to process 5 million tonnes of crude oil annually to yield "clean-burning gasoline, diesel, and jet fuel." Honeywell UOP will provide Jizzakh Petroleum with licensing and basic engineering design services for Distillate Unionfining, CCR Platforming, Par-Isom, Unicracking, and Merox processes.
  • The partnership is key because of the extent of involvement of Honeywell UOP's proprietary technologies in building the large-capacity Jizzakh refinery.

Honeywell UOP and Ceyhan Polipropilen Uretim

  • Honeywell UOP agreed to provide its proprietary Oleflex technology Ceyhan Polipropilen Uretim, a joint venture of Ronesans Holding and Sonatrach S.p.A.
  • Ceyhan Polipropilen Uretim will use the technology to produce 457,000 metric tons of polymer-grade propylene annually for a new petrochemicals complex in Ceyhan, Turkey, which will reduce the country's dependence on imports from the Middle East and Western Europe.
  • The contract to use Honeywell UOP's Oleflex technology is significant because it is Turkey's first contract for propane dehydrogenation (PDH) technology, with the PDH unit poised to be the first to operate in the country.
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