Honeywell and United Airlines are driving the largest sustainable fuel purchase agreement in aviation history

• Co-invest in Alder Fuels, a start-up, to accelerate the large-scale production of sustainable aviation fuel

• United has committed to procuring approximately 5.7 billion liters of SAF from Alder Fuels over 20 years

• Honeywell, as a pioneer in sustainable aviation fuel production technology, will leverage proven technology to help Alder Fuels achieve its goal of commercializing its technology and completely replacing fossil aviation fuel

DES PRANS, Ill., United States, Sept. 14, 2021 – Honeywell (NASDAQ: HON) today announced that it is partnering with United States United Airlines (United) to make a multimillion-dollar joint investment in cleantech startup Alder Fuels, Inc. (Alder). Alder is enabling the large-scale production of sustainable aviation fuel (SAF) through new technologies that convert abundant biomass feedstocks, such as forest and crop waste, into sustainable, low-carbon direct alternatives to crude oil. Throughout the fuel lifecycle, Alder's technology, combined with Honeywell's Ecofining™ process, produces carbon-negative fuel that performs like current jet fuel standards, achieving the goal of completely replacing petroleum jet fuel.

Under the agreement, United commits to purchase approximately 5.7 billion liters (1.5 billion U.S. gallons) of sustainable aviation fuel produced in accordance with United's requirements from Alder. The agreement is 1.5 times the total known commitment of all airlines in the world, making it the largest known SAF purchase agreement in aviation history.

"Since announcing its 100% green commitment in 2020, United has focused on decarbonization options beyond traditional carbon offset mechanisms. The commitment includes increasing the use and supply of sustainable aviation fuel, which is also the fastest way to reduce emissions in the fleet. But to scale up SAF production as quickly as possible, it's not enough to stick to existing solutions, we need to invest in research and development, including new approaches that Alder is doing," said Scott Kirby, CEO of United. United's leadership is a great way to convey to our customers our mission to help combat climate change. ”

"Honeywell has become a pioneer in the sustainable aviation fuel market through the development of UOP Ecofining™ technology, and our partnership with United and Alder will leverage new technologies to transform the industry and drive zero-carbon economic growth," said Honeywell Chairman and Chief Executive Officer. "This solution will not only advance United's commitment to using sustainable aviation fuel, but will also help the aviation industry overcome the increased carbon emissions associated with business growth."

According to the United States Department of Energy, United States agroforestry waste alone can provide enough biomass energy to produce more than 64.3 billion liters (17 billion U.S. gallons) of jet fuel, replacing 75% of United States' jet fuel consumption. If the United States were to adopt a regenerative agriculture model that captures more carbon in a healthier soil environment than traditional methods, it could produce about 26.5 billion liters (7 billion U.S. gallons) of SAF, which could completely replace the fossil aviation fuel currently consumed in the United States.

Alder's technology and the aviation industry's demand for sustainable fuels have created a large new market for biomass in regenerative agriculture. By using this biomass feedstock, Alder's production process is carbon-negative throughout the fuel's entire life cycle.

"Carbon reduction in the aviation industry is a major technical challenge to combat climate change, and SAF presents great applications, but there is currently a shortage of raw materials," said Bryan Sherbacow, CEO of Alder and senior advisor to World Energy. "Alder's technology is revolutionizing the way SAF is produced by facilitating the use of sufficient, low-cost, low-carbon feedstocks. Fuels that can be used as a direct replacement for conventional jet fuel bring the industry closer to the goal of 100% sustainable aviation fuel, thereby accelerating the global economy's journey to zero carbon. ”

Prior to founding Alder, Sherbacow built the world's first SAF refinery using Honeywell technology and subsequently signed a purchase agreement with United, making it the first airline in the world to consistently use SAF in its regular operations and the largest SAF purchaser. With this purchase agreement, United now accounts for more than 70 percent of the industry's total publicly committed SAF purchases.

Honeywell's UOP Ecofining™ process is the first technology to be used to produce SAF for commercial aviation at scale, setting a market precedent for SAF. With a focus on sustainable technology development, Honeywell will leverage its technical expertise and proven process for developing sustainable fuels with Alder and incorporate a proprietary hydrotreating design into the production process, with the goal of commercializing the technology by 2025. This collaboration demonstrates Honeywell's deepening collaboration with startups with sustainable technology solutions to help them accelerate scale-up, develop customers, and improve R&D to contribute to global sustainability.

As early as 2011, Honeywell's sustainable aviation fuel technology was applied in China. On October 28 of that year, Air China, PetroChina, Boeing and Honeywell UOP successfully carried out China's first aviation sustainable biofuel verification flight at Beijing Capital International Airport. Air China used an existing Boeing 747-400 aircraft loaded with aviation biofuel, which was jointly produced by PetroChina and Honeywell UOP, to carry out a successful demonstration flight at Beijing Capital International Airport, marking the beginning of the development of aviation biofuel for China's civil aviation.

Honeywell and United Airlines are driving the largest sustainable fuel purchase agreement in aviation history

Honeywell and United Airlines are driving the largest sustainable fuel purchase agreement in aviation history

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