With Southwest Airlines deal, Velocys presells 100% of the output from its US biobased jet fuel project

The biofuel maker Velocys has signed jet fuel purchase agreements with Southwest Airlines and International Airlines Group. Velocys says it now has agreements for the entire output of the facility it plans to open in Mississippi in 2026. The plant, known as Bayou Fuels, will use gasification and Fischer-Tropsch chemistry to make the fuel from wood waste. It will be fitted with carbon-capture equipment from Oxy Low Carbon Ventures, making its fuel net-negative in CO₂ emissions. The two airlines have also agreed to buy the resulting greenhouse gas tax credits.