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

United Airlines Holdings Inc UAL and Honeywell International Inc 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.