Southwest Sells Renewable Fuels Unit to Conestoga Energy
Published · 3 min read
Southwest Airlines has sold its renewable fuels business, SAFFiRE Renewables, to Conestoga Energy. The deal includes all intellectual property, certain related technologies, a proposed pilot plant in Kansas, and key members of the SAFFiRE leadership team. Terms were not disclosed. The pilot is planned at Conestoga’s Arkalon Energy site in Liberal, Kansas, with operations expected in 2026.
What Was Sold
- All IP and related tech behind SAFFiRE’s cellulosic ethanol process.
- A Kansas pilot facility plan co-located at Conestoga’s Arkalon Energy plant.
- Key leaders, including CTO Marykate O’Brien and Director of Engineering Nitin Kolhapure.
- An exclusive license to NREL’s deacetylation and mechanical refining (DMR) pretreatment tech for converting corn stover to ethanol.
- Conestoga says the pathway can reach a carbon intensity score below −100 for the ethanol intermediate.
The Kansas Pilot Plant
The pilot plant will sit inside Conestoga’s Arkalon Energy complex. It aims to process corn stover—the leaves, stalks, and cobs left after harvest—into cellulosic ethanol. That ethanol can be upgraded into sustainable aviation fuel (SAF) using alcohol-to-jet technology at LanzaJet.
U.S. Department of Energy materials note the pilot is designed to handle about 10 tons of corn stover per day and target a lifecycle footprint at least 83% lower than conventional jet fuel, depending on inputs and boundaries. Groundbreaking occurred in 2024.
Conestoga and SAFFiRE plan to use lessons from the pilot to guide designs for future commercial plants. The company says first operations are expected in 2026, subject to execution and permits.
Background and Timeline
Southwest created its Renewable Ventures subsidiary in February 2024 to help secure SAF. A month later, it acquired SAFFiRE. The airline had first invested in SAFFiRE in 2022. Today’s sale passes the technology and pilot plan to a producer that already runs large ethanol sites in Kansas.
Who Is Conestoga Energy?
Conestoga operates two ethanol plants and manages 200+ million gallons per year of production and co-products across Kansas and Texas. Its operations include long-running CO₂ capture and generation of both D6 and D3 RINs. The Arkalon Energy plant in Liberal is a large site, reported at roughly 110–115 million gallons per year capacity.
Learn more about the company at conestogaenergy.com.
Why This Deal Matters
Airlines want more SAF to cut carbon. But supply is tight, and prices are high. Conestoga’s CEO said the acquisition helps bridge the supply–demand gap and could create new value for U.S. agriculture. Moving SAFFiRE into an experienced biofuels operator may speed scale-up and de-risk day-to-day operations.
Key Facts at a Glance
| Item | Detail |
| Buyer | Conestoga Energy Partners, LLC |
| Seller | Southwest Airlines Renewable Ventures (SAFFiRE unit) |
| Assets | All IP, related tech, proposed Kansas pilot, key leadership |
| Pilot Location | Arkalon Energy plant, Liberal, Kansas (Conestoga) |
| Planned Start | 2026 (company guidance) |
| Core Tech | NREL’s DMR pretreatment; corn stover to ethanol for SAF |
| Pilot Design | ~10 tons/day corn stover; target ≥83% lower emissions than jet fuel |
| Arkalon Capacity | ~110–115 million gal/year (reported) |
What Happens Next
- Conestoga integrates SAFFiRE’s team and IP.
- Build-out continues at Arkalon for the pilot.
- Testing aims to confirm yields, costs, and reliability.
- Results inform commercial plant designs and siting.
The company says the pilot should guide its plans for commercial-scale production. If it meets goals, the pathway could add more low-carbon ethanol for SAF and other markets. :contentReference[oaicite:10]{index=10}
Context: SAF Push in the U.S.
The SAF Grand Challenge sets big goals for production this decade. The SAFFiRE pilot, with public and private support, is one step toward that future. It’s early days, but the plan is simple: prove the tech, then scale it.
