American Airlines’ Pioneering Investments in Hydrogen and Sustainable Aviation Fuel

American Airlines and its cargo division have set their sights on achieving zero-emission operations by 2050 through the development of hydrogen and Sustainable Aviation Fuel (SAF) technologies.

The airline, headquartered in Fort Worth, Texas, has invested in two hydrogen development companies to expand its decarbonization opportunities, signaling its commitment to future fuels.

In August of last year, American Airlines made an investment in ZeroAvia, a UK/US-based hydrogen-electric engine developer. The investment also provided the airline with the potential to order up to 100 zero-emission engines initially designed for regional jet aircraft. Additionally, in October of the same year, American Airlines made an equity investment in Universal Hydrogen, a California-based company dedicated to realizing hydrogen-powered commercial flights.

Greg Schwendinger, President of American Airlines Cargo, emphasizes that the airline believes achieving zero emissions will require more than just SAF. By strategically investing in hydrogen startups, American Airlines aims to diversify its approach towards carbon neutrality and support technologies that could be part of the solution.

While American Airlines Cargo currently operates without freighters, any green investments made by the passenger side of the business will ultimately benefit the cargo division.

Although SAF remains a critical component of American’s decarbonization strategy, the airline has already established contracts with three SAF providers: Neste, Aemetis, and Gevo. American Airlines began collaborating with Neste, a Finnish renewable fuels and products company, in 2017. The partnership involves the use of Neste’s renewable fuels, with a recent agreement to supply SAF via pipeline at San Francisco International Airport.

American Airlines also has plans to receive 16 million gallons of SAF annually from Aemetis, a California-based renewable fuels and biochemicals company, starting in 2024. Furthermore, the airline has committed to purchasing 500 million gallons of SAF from Gevo, a Colorado-headquartered renewable chemicals and biofuels company, over a five-year period beginning in 2026. These agreements contribute significantly to American Airlines’ goal of replacing 10% of jet fuel usage with SAF by 2030.

Jill Blickstein, Vice President of Sustainability at American Airlines, is guiding the airline’s incremental progress toward achieving net-zero greenhouse gas (GHG) emissions by 2050. By 2030, American Airlines aims to replace approximately 10% of its jet fuel consumption with SAF. By 2035, the company plans to reduce greenhouse gas emissions intensity by 45% and scope two emissions by 40%.

In addition to investments in future fuels, American Airlines is focusing on fleet renewal, sustainable ground equipment, facility improvements, and operational sustainability. American Airlines Cargo has reduced its paper use by supporting the industry’s eAWB initiative, and it has also partnered with M&G Packaging’s BioNatur Plastics to utilize reusable and biodegradable polyethylene film for shipments at US airports. The lighter weight of the film reduces fuel burn and CO2 emissions, contributing to sustainability efforts.

Greg Schwendinger acknowledges that the industry faces challenges in increasing SAF production to achieve financial viability by 2050. However, American Airlines remains committed to its early identification and implementation of SAF. Schwendinger believes that if the entire industry shares American’s commitment, reaching net-zero emissions is achievable, albeit requiring significant investment. Schwendinger emphasizes the importance of shouldering the cost of decarbonization to fund infrastructure development, ultimately reducing costs and enabling widespread adoption of sustainable technologies.