Fulcrum BioEnergy, Inc. and United Airlines, Inc. announced that United Airlines has invested $30 million in Fulcrum and will have the option to directly participate in Fulcrum’s waste-to-jet fuel plants across North America.
United will also have the opportunity to purchase 90 million gallons per year of Fulcrum’s cost-competitive, sustainable jet fuel under long-term offtake agreements, subject to availability. This represents the biggest strategic partnership in the biofuels and aviation industries and Fulcrum’s second direct investment by an airline.
“This is a major advancement of Fulcrum’s program to provide large volumes of commercial and military spec fuel at competitive pricing to the industry. This strategic partnership with United accelerates our whole program,” said E. James Macias, Fulcrum’s President and Chief Executive Officer.
“We have created a business that will compete directly with fossil fuel on the basis of cost and sustainability. Since our inception, Fulcrum has developed a robust operating platform and business plan that brings in large industry leaders to create value throughout the waste to fuels process. We have combined the best team in biofuels with two of the largest waste services companies, two major airlines, the U.S. Air Force, the U.S. Navy, the USDA, the best technology providers and a premier contractor to build out our program. I’m proud of what our team has accomplished and am very excited about the future,” added Macias.
Fulcrum has established strong strategic partnerships with industry leaders that are also significant investors in Fulcrum. This adds value across the business enterprise and advances the production and use of alternative fuels for the aviation industry and the military. These collaborative partnerships provide multiple levels of support to Fulcrum’s innovative, cost-competitive process for producing a domestic source of renewable transportation fuels.
Fulcrum has partnered and entered into agreements with two of the US largest waste services providers, a subsidiary of Waste Management and Waste Connections, to secure large volumes of municipal solid waste (“MSW”) under long-term contracts. The Waste Management subsidiary will provide the majority of the volume for the Sierra BioFuels Plant near Reno, NV, and Waste Connections will provide the balance under a separate long-term MSW supply agreement.