According to the carrier, this investment is the largest of its kind by a US airline and is the latest step by United to explore the option of alternative fuels. This is not only an environmental endeavour but one of a financial nature, addressing the airline's largest expense: in 2014 alone, United spent US$11.7bn on 3.9bn gallons of jet fuel.
It has been agreed that United and Fulcrum will develop five alternative fuel refineries near United's hubs, with each expected to produce up to 180m gallons of biofuel per year. Of this 180m, United has the chance to buy at least 90m gallons a year, which equates to 20,000 flights, for a minimum of ten years at a competitive price to traditional jet fuel. Despite sounding like a considerable sum, however, this quantity constitutes less than 3% of United's annual fuel use.
According to Angela Foster-Rice, United's Managing Director of Environmental Affairs and Sustainability, if commercial operation of Fulcrum's first fuel plant begins in 2017, as expected, United anticipates receiving its first delivery of fuel in 2018, reaching the full 90m gallons by 2021.
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United invests in alternative fuel
At the beginning of the month, United announced a US$30m investment in California-based Fulcrum BioEnergy, which specialises in converting municipal waste into fuel.
