US-based airline giant United Airlines has entered into an agreement with fuel producer AltAir Fuels to buy about 15 million gallons of bio-fuel over next three years.
The biofuel procured through this agreement will be used for flights operating out of its Los Angeles hub.
As per the terms of the agreement, AltAir will deliver five million gallons of renewable jet fuel to United per year starting 2014.
To supply the fuel as per the deal, AltAir is planning to transform a section of its existing petroleum refinery near Los Angeles, California, to produce biofuel of 30 million gallon, annually.
Commenting on the alliance, United global environmental affairs and sustainability managing director Jimmy Samartzis said the company is delighted to form a strategic partnership with AltAir, which is aimed at the industry, the environment, and customers.
"This agreement underscores United’s efforts to be a leader in alternative fuels as well as our efforts to lead commercial aviation as an environmentally responsible company," added Samartzis.
AltAir chief executive officer Tom Todaro noted: "United Airlines has been a strategic partner for several years as we work to establish our biofuel facility.
"We cannot overestimate how important this milestone is for the commercialization of sustainable aviation biofuels, and we at AltAir are proud that United is our first customer."
AltAir, meanwhile, is planning to use processing technology by Honeywell’s UOP to retrofit the refinery enabling it to produce bio-fuel.
In addition, it has forged a deal with an oil refiner securing idled refining equipment and retooling it to increase the nation’s energy supply, the company stated.
