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NEW YORK, Sept 22 (Reuters) – Sustainable gas startup Air Firm has multi-year agreements to promote jet gas produced from captured carbon emissions to carriers JetBlue Airways Corp (JBLU.O) and Britain’s Virgin Atlantic, the businesses mentioned on Thursday.
Monetary phrases weren’t disclosed.
Beneath the memoranda of understanding, JetBlue will purchase 25 million gallons of Air Firm’s sustainable aviation gas (SAF) between 2027 and 2032, Air Firm mentioned in a press release confirmed by the carriers. Virgin Atlantic will buy as much as 100 million gallons of SAF over 10 years.
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New York-based Air Firm mentioned it makes use of carbon dioxide from a wide range of sources, reminiscent of ethanol crops, to make SAF.
The worldwide aviation trade is underneath strain to cut back carbon emissions and discover methods to satisfy the 2050 net-zero emissions goal set by the Worldwide Air Transport Affiliation (IATA) in 2021.
“We’re excited to be working with Air Firm to achieve our 10% SAF goal by 2030,” mentioned Holly Boyd-Boland, Virgin Atlantic’s vice chairman of company improvement.
The trade, which contributes about 2% of worldwide carbon dioxide emissions, faces formidable challenges in reaching that objective as applied sciences reminiscent of electrical and hydrogen-powered plane are nonetheless unproven.
International airways and aerospace producers are betting on SAF, which is made in tiny portions from feedstocks like cooking oils and animal waste, and might value two to 5 instances greater than typical jet fuels.
International investments are anticipated to extend SAF annual manufacturing from over 33 million gallons to over 1.3 billion by 2025, in response to the IATA.
The Biden administration is aiming to extend SAF manufacturing to a minimum of 3 billion gallons per 12 months by 2030.
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Reporting by Doyinsola Oladipo in New York; Further Reporting by Rajesh Kumar Singh in Chicago; modifying by Peter Henderson and Richard Chang
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