United Airlines, Tallgrass, and Green Plains Inc. have announced a new joint venture – Blue Blade Energy – to develop and then commercialize a novel Sustainable Aviation Fuel (SAF) technology that uses ethanol as its feedstock.

In a statement, the US airline said if the technology is successful, Blue Blade is expected to proceed with the construction of a pilot facility in 2024, followed by a full-scale facility that could begin commercial operations by 2028.

The offtake agreement could provide for enough SAF to fly more than 50,000 flights annually between United's hub airports in Chicago and Denver.

United said Blue Blade's new SAF technology was developed by researchers at the U.S. Department of Energy's Pacific Northwest National Laboratory (PNNL), a centre for technological innovation in sustainable energy.

"The production and use of SAF is the most effective and scalable tool the airline industry has to reduce carbon emissions, and United continues to lead the way," said Michael Leskinen, United Airlines Ventures president.

"This new joint venture includes two expert collaborators that have the experience to construct and operate large-scale infrastructure, as well as the feedstock supply necessary for success. Once operational, Blue Blade Energy has the potential to create United's largest source of SAF, providing up to 135 million gallons of fuel annually."

United said Tallgrass will manage research and development of the technology, including pilot plant development, and will manage the construction of the production facility.

Meanwhile, Green Plains will supply the low-carbon ethanol feedstock and use its ethanol industry expertise to manage operations once the pilot facility is constructed.

United Airlines, for its part, will assist with SAF development, fuel certification and into-wing logistics and has also agreed to purchase up to 2.7 billion gallons of SAF produced from the joint venture.

The carrier said while the initial SAF facility intends to use ethanol, the technology has the capability to work with any alcohol-based feedstock as its fuel source.

Blue Blade Energy marks one of the largest direct investments from United Airlines Ventures (UAV), United's corporate venture arm, into SAF.

Launched in 2021, UAV targets startups, upcoming technologies, and sustainability concepts that will complement United's goal of net zero emissions by 2050 without relying on traditional carbon offsets. 

SAF, which uses non-petroleum feedstock, is a low-carbon alternative to traditional jet fuel that offers up to 85% lower lifecycle greenhouse gas emissions.