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Microsoft to Buy Alternative Fuels for Alaska Air as Part of Climate Pledge

The Motley Fool logo The Motley Fool 10/22/2020 Lou Whiteman
a large passenger jet sitting on top of a runway: Microsoft to Buy Alternative Fuels for Alaska Air as Part of Climate Pledge © Provided by The Motley Fool Microsoft to Buy Alternative Fuels for Alaska Air as Part of Climate Pledge

Microsoft (NASDAQ: MSFT) and Alaska Air Group (NYSE: ALK) announced a partnership on Thursday in which Microsoft will buy jet fuel made from waste oils to power Alaska flights.

Microsoft earlier this year pledged to become "carbon negative" by 2030, and by 2050 hopes to remove all the carbon it has emitted since its founding in 1975. The company will need help to meet that lofty goal, and with commercial airlines responsible for upward of 3% of global carbon emissions, working with an airline is a good way to make a difference.

a large passenger jet sitting on top of a runway: A number of Alaska planes parked in a row at the terminal. © Alaska Air Group A number of Alaska planes parked in a row at the terminal.

The agreement with Alaska should help reduce emissions on Microsoft employee travel between its Seattle headquarters and San Francisco, San Jose, and Los Angeles, the three most-often traveled routes by its employees on Alaska Air.

"We are excited to partner with Alaska Airlines to make business air travel a little greener by using sustainable aviation fuel supplied by SkyNRG to reduce the carbon impact of the flights Microsoft employees fly most," Microsoft executive vice president Judson Althoff said in a statement.

The fuel is made from waste oil from cooking and agriculture and blended with traditional jet fuel. Microsoft will purchase credits redeemable for sustainable aviation fuel from SkyNRG, which is based in the Netherlands, and the fuel will be delivered for use by Alaska.

Alaska Air has been using sustainable fuel for about a decade in a limited capacity.

Airline CEO Brad Tilden praised the potential of alternative fuel, but said "we cannot do this alone -- we must work together with other industries and business leaders like Microsoft and SKyNRG" to expand the use of cleaner fuels.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft. The Motley Fool recommends Alaska Air Group and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool has a disclosure policy.

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