Inside Microsoft & Alaska Airlines American Biofuel Plant

Microsoft and Alaska Airlines have joined forces with industrial technology company Twelve to bring a commercial-scale synthetic e-fuel plant online, focused on producing cleaner energy for aviation.

AirPlant One is the first facility of its kind at this scale in the US, generating low-carbon jet fuel using captured carbon dioxide, water and renewable electricity. The process highlights the growing role of electrification and carbon utilisation in reshaping fuel supply.

The output is a drop-in synthetic aviation fuel, compatible with existing aircraft and infrastructure, while offering lifecycle CO₂ emissions reductions of up to 90% compared to conventional jet fuel.

Back in 2022, Microsoft and Alaska Airlines committed to purchasing future production from the site, a move that helped Twelve unlock financing, reduce risk and move ahead with construction.

In parallel with the offtake agreement, Alaska Star Ventures, the investment division of Alaska Airlines, took part in Twelve’s US$645m funding round. Microsoft also supported the initiative via its Climate Innovation Fund.

Scaling sustainable aviation fuel

Microsoft says its involvement reflects a broader strategy to address emissions linked to energy-intensive activities such as business travel.

Melanie Nakagawa, Chief Sustainability Officer at Microsoft, points to the importance of partnerships in accelerating new energy systems.

"Our investment in Twelve helps scale energy solutions while laying the groundwork for cleaner aviation at a global scale," she says.

“We look forward to sourcing future gallons of Washington-produced SAF to help reduce our business travel emissions."

Strengthening domestic energy supply

Alaska Airlines, working alongside Microsoft, plans to integrate AirPlant One’s E-Jet fuel into its domestic operations.

"As Seattle's hometown airline, we are committed to supporting in-state production of sustainable aviation fuel, which is currently the best technology for the airline industry to reach net-zero carbon emissions", says Ryan Spies, Alaska Airlines' Managing Director of Sustainability.

"Our partnership with Twelve and Microsoft demonstrates the power of innovation and collaboration to successfully advance SAF, while creating new jobs, diversifying fuel supply chains and strengthening energy security."

Improving energy price stability

AirPlant One will also supply sustainable jet fuel to a wider group of aviation partners, contributing to a more resilient energy market for the sector.

According to Twelve, pricing can be stabilised through long-term renewable power purchase agreements that underpin production. This contrasts with conventional jet fuel, which remains closely tied to fluctuations in global crude oil markets.

"We broke ground on AirPlant One with a simple thesis: that the fuels powering the global economy could be made from renewable electricity and air, anywhere in the world," says Nicholas Flanders, Co-Founder and CEO of Twelve.

Beyond jet fuel

Alongside aviation fuel, AirPlant One produces E-Naphtha, an alternative chemical derived from CO₂, water and renewable energy inputs.

This material can replace fossil-based inputs in a range of applications including plastics, packaging, solvents and synthetic fibres, extending the plant’s role beyond aviation into broader industrial energy use.

Twelve has already supplied E-Naphtha to major global manufacturers such as Mercedes-Benz, PANGAIA and Procter & Gamble.