Is this the way of the future? You scratch my corporate back, I’ll scratch yours

Coughing up the capital for SAF production is not high on most investors’ priorities. As things stand, creating enough sustainable fuel to make a real difference to the industry’s fossil fuel dependence has all the chances of a snowball in environmental hell.

But where companies need to reduce their carbon footprint, it would seem to make sense for them to go direct.

Google’s newly announced strategic deal with American Airlines sends a message to many other large companies that this might be a sensible way to go – although it does need a solid nudge from regulators to make it happen. 

The two companies have announced they will jointly purchase 35 million gallons (132 million litres) of SAF over three years. 40 million litres a year is still a drop in the ocean, but every bit helps.

Google reportedly spends about USD1billion on travel annually, thereby racking up a hefty carbon footprint. Through its investment it will receive credits for the SAFc Registry, the book-and-claim system designed that’s supposed to provide traceable accounting of a company’s SAF-related emissions reductions.

Under the agreement, American Airlines is to purchase and take delivery of physical fuel at Chicago O’Hare using existing infrastructure, with the SAF produced from waste feedstocks like used cooking oil.

As Kate Brandt, Chief Sustainability Officer at Google, says, “This strategic collaboration with American Airlines demonstrates how companies can work together to scale critical sustainability technologies. By entering into this long-term commitment, we are sending a vital demand signal to catalyze investment and bring more SAF to market.”

And American proudly announced that “Our industry-leading agreement with Google is a critical step forward in reducing emissions from our operations. By working with leaders like Google who share our commitment to innovation, we’re helping to grow demand for SAF and support the development of a stronger, more resilient market.”