United Airlines Executes "Historic" 15 Million Gallon Biofuel Deal; Shares Rise 2%

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United Airlines ( UAL ) executed a definitive purchase agreement with AltAir Fuels for cost-competitive, sustainable, advanced biofuels at commercial scale, representing what the company called "a historic milestone for aviation."

With United's strategic partnership, AltAir Fuels will retrofit part of an existing petroleum refinery to become a 30-million gallon, advanced biofuel refinery near Los Angeles, Calif. AltAir will produce low-carbon, renewable jet fuel and other renewable products. United has collaborated with AltAir Fuels since 2009 and has agreed to buy 15 million gallons of lower-carbon, renewable jet fuel over a three-year period, with the option to purchase more.

The airline is purchasing the advanced biofuel at a price competitive with traditional, petroleum-based jet fuel, and AltAir expects to begin delivering five million gallons of renewable jet fuel per year to United starting in 2014. United will use the biofuel on flights operating out of its Los Angeles hub.

UAL is up 2.2% to $32.88. Shares have a day's range of $32.15 - $33.39, within a

52-week range of $17.45 - $35.27.



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This article appears in: Investing , Commodities

Referenced Stocks: UAL

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