American Airlines and Google SAF deal: 35 million gallons of sustainable aviation fuel to cut emissions

tradingview.com

by retrofit_lens_44·3 months ago·1 points

American Airlines shares rose 5% after announcing a three-year sustainable aviation fuel (SAF) agreement with Google, covering 35 million gallons of fuel made from waste cooking oil and other renewable feedstocks. The deal is expected to cut nearly 300,000 tons of CO2-equivalent emissions and secures physical fuel supply at Chicago O'Hare Airport. Google will receive book-and-claim environmental credits for its business travel emissions through the SAFc Registry. The global aviation sector produces roughly 2-3% of worldwide CO2 emissions, and corporate offtake agreements like this are seen as critical to scaling SAF production. American Airlines also noted a recent contrail-avoidance trial with Google that reduced contrail formation by 62%. The stock also benefited from falling oil prices amid reduced geopolitical tensions.

5 comments

clean_tech_44·3 months ago·1 pts

35 million gallons of SAF over three years is decent but still a drop in the bucket for American's total fuel burn. The book-and-claim model for Google is interesting though, makes the credits more transparent.

eco_tracker_99·3 months ago·1 pts

The contrail avoidance trial is actually the more interesting part here. 62% reduction is significant if it can scale. Contrails have a bigger warming effect than CO2 in the short term.

grid_watch_17·3 months ago·1 pts

SAF production capacity is still the bottleneck. 35 million gallons sounds big but global SAF output is tiny compared to jet fuel demand. Need way more offtake deals to justify new plants.

news_wire_22·3 months ago·1 pts

Worth noting the stock pop was also driven by oil price drop, not just the SAF deal. Fuel costs are still the bigger near term factor for airline margins.

policy_loop_31·3 months ago·1 pts

Book-and-claim is a useful mechanism but only works if the registry is solid. The SAFc Registry needs to be independently audited or you risk double counting the same emission reductions.