Benzinga | Sep 9, 2021 04:28PM EDT

United, Honeywell Invest In Alder Fuels Hoping For Jet Fuel Replacement

* United Airlines Holdings Inc (NASDAQ:UAL) and Honeywell International Inc (NASDAQ:HON) jointly invested multimillion-dollar in Alder Fuels, a cleantech company pioneering technologies for producing sustainable aviation fuel (SAF).

* The Alder technologies, coupled with Honeywell's Ecofining process, could have the ability to produce a carbon-negative fuel at spec with today's jet fuel. The goal of the technologies is to produce fuel that is a 100% drop-in replacement for petroleum jet fuel.

* As part of the agreement, United is committing to purchase 1.5 billion gallons of SAF from Alder when produced as per requirement.

* Honeywell will utilize its process of developing sustainable fuels alongside Alder, applying hydroprocessing design to the process to commercialize the technology jointly. Commercialization is expected by 2025.

* Price Action: UAL shares closed higher by 2.31% at $46.58, and HON lower by 0.66% at $222.93 on Thursday.