4. United SAF Study Session
Title Slide—do not deletePort of Seattle SAF Study Session Tom Michels Director, Government Affairs United April 27, 2021 United is the only airline globally to commit to net-zero without offsets—here’s our path to decarbonization New aircraft Capturing CO2 Appealing to eco- Ample, affordable and engine directly from the conscious low-carbon fuel technology atmosphere customers Aviation demand Reducing fuel use isn’t Likely not enough SAF, Making customers feel continues to grow, so enough—low-carbon but carbon capture can good about flying—on fuel efficiency must sustainable aviation fuel achieve the remainder airlines innovating and continue to improve as (SAF) offers ~80% CO2 leading decarbonization well reductions Launch customer for 18 First airline to fly on SAF Only airline investment in First U.S. airline with a new aircraft types on an ongoing basis (2016) carbon capture and carbon offset calculator Nearly 300 new aircraft on Largest airline investment sequestration via (2007) order—with 15%-20% CO2 in a SAF producer ($30M) multimillion-dollar Testing display of CO2 reductions Purchased more SAF than investment in 1PointFive emissions in booking Invested in Archer Aviation any other airline (2020) process to scale up urban air Nearly half of publicly Greening onboard product mobility—with potential for announced SAF and airport facilities future larger applications commitments (2021) 2 United backs its ambitious decarbonization goals by leading the airline industry in developing SAF Flights using sustainable fuel1 Sustainable fuel contracted2 millions of gallons ~219,000 925 130 99 ~7,700 ~3,200 ~1,200 25 0 24 9 Undisclosed UA AS AA B6 DL WN UA DL B6 WN AA AS 1 Bureau of Transportation Statistics, 2019 2 Includes two ties 1 Through December 31, 2020; scheduled departures at airports with SAF contracts, test flights, and announced delivery flights 2 Publicly announced commitments 3 United backs its ambitious decarbonization goals by leading the airline industry in developing SAF Nearly half of First ongoing Purchased all future SAF Largest airline SAF use more SAF purchases First U.S. investment globally than any other Based on publicly SAF flight $30M in Fulcrum World Energy in airline globally announced Two hours BioEnergy Los Angeles as of Dec 31 commitments 2009 2015 2016 2020 Today 4 United works with two SAF producers and has the largest purchase agreement and investment globally Purchase agreement for up to 5M Equity investment of $30M in gallons/year for 5 years, starting in 2015, the largest airline 2016 investment in SAF SAF produced from waste fats, oils, Purchase agreement for up to and greases using HEFA process 90M gallons/year for 10 years, the Nearly 80% CO2 emissions largest globally reduction SAF to come from landfill waste using Fischer-Tropschprocess Production in Paramount, California—then delivered to Los Greater than 80% CO2 emissions Angeles International Airport reduction Reno, Nevada facility under construction; Gary, Indiana planned 5 Corporate adoption of SAF would significantly accelerate supply and reduce price premiums U.S. SAF supply has increased 25% since 2016, but has yet to achieve needed exponential growth Modest SAF commitments by corporates would result in a large increase in SAF supply—and long-term, a decrease in costs U.S. SAF supply1 Economies of scale4 Gallons (M) 5% / 10% curves Cost 3.4 +25% $6 Current gap 2.4 $5 $4.50 $4.25 $4. 05 1.9 1.8 +19 1% $4 1.7 Incentives 1.3 $3 Other2 0.9 0.7 $3.30 1.2 $3.00 $2 $2.70 United 1.1 1.0 1.2 $1 Conventional 0.6 $0 2016 2017 2018 2019 Apr 13 0x 50x 100x 150x 200x Volume increase / commitments3 0.01% 0.7% 1.3% 2.0% 2.7% % of U.S. jet fuel5 1 RIN issuances by EPA 2 Primarily foreign airlines buying in the U.S. 3 Commitments from over a dozen United customers announced on April 13 4 Wright’s Law (aka Learning Curve): for every doubling of output, unit costs will decrease by x%; for illustrative purposes only 5 U.S. jet fuel demand of ~20B gallons in 2019 6 The Eco-Skies Alliance program offers a new way to decarbonize via sustainable aviation fuel (SAF) Over a dozen United customers Direct reductions are funding SAF’s green premium, SAF provides direct reductions within aviation, rather including: than buying carbon offsets that don’t solve the core underlying problem Autodesk Boston Consulting Group ~80% less CO2 SAF provides a nearly 80% reduction in CO2 CEVA Logistics emissions—far more effective than the 15%-20% of Deloitte flying on a newer aircraft DHL Global Forwarding Made in California DSV Panalpina United’s SAF is produced ~15 miles from Los Angeles International Airport, the closest and fastest delivery to HP Inc. an airline from any SAF producer Nike Brand differentiation Palantir Flying on SAF offers significant opportunities to Siemens differentiate a customer’s brand and demonstrate sustainability leadership—with customers and Takeda Pharmaceuticals employees 7 uniTEDASTAR ALLIANCE MEMBER7;he We plan to land on the green side of history. United is going 100% green by 2050 by reducing our greenhouse gas emissions by 100%. Learn more at united.com/100green8
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.