United Airlines (
) 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
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
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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