Southwest sells SAFFiRE Renewables to Conestoga Energy

Southwest Airlines Renewable Ventures has offloaded its investment in SAFFiRE Renewables by selling the company to low-carbon biofuel provider Conestoga Energy.

The divestment includes all intellectual property, certain related technologies, the proposed pilot production facility, as well as key leadership team members.

The terms of the transaction were not disclosed.

Conestoga said it aims to leverage SAFFiRE’s exclusive license to Deacetylation and Mechanical Refining (DMR) pretreatment technology to convert corn stover into ethanol with a carbon intensity (CI) score less than negative 100. The company plans to produce low-carbon ethanol for SAF and other biofuel production.

The company will also co-locate SAFFiRE’s pilot facility at its Arkalon Energy plant in Liberal, Kansas, and is expected to be operational in 2026.

“SAF represents a multi-billion-dollar market opportunity, and this acquisition positions Conestoga at the leading edge of efforts to bridge the critical supply-demand gap facing the aviation industry while creating transformative opportunities for American agriculture,” said Tom Willis, CEO of Conestoga Energy.

Kansas-based Conestoga owns two ethanol plants and manages over 200m gallons per year along with related co-products across Kansas and Texas.

To note, Southwest acquired SAFFiRE Renewables in April 2024 with plans to increase its exposure to SAF producers and value chain. But the company significantly dialled back its investments and other ventures in SAF over the last six months.