Sept 30 (Reuters) – U.S. carrier Delta Air Lines Inc DAL.N will buy sustainable aviation fuel (SAF) from Aemetis Inc AMTX.O in a 10-year deal worth over $1 billion, including tax credits, the renewable energy firm said on Thursday.
Airlines have been under pressure from environmental groups to lower their carbon footprint, with the Biden administration setting targets to boost SAF output and help the domestic aviation industry shift away from traditional fuels.
Aemetis’ pact with Delta follows a similar deal agreed by JetBlue Airways Corp JBLU.O on Wednesday with bioenergy firm SG Preston to procure SAF for its flights from New York’s airports.
Shares of Aemetis were up 11.1% at $18.12 at market open, a near five-month high.
Aemetis will deliver 250 million gallons of fuel containing SAF, which is made from feedstocks such as used cooking oil and animal fat, and is expected to be available for use by Delta in 2024.
Atalanta, Georgia-based Delta, which has a goal of replacing 10% of its conventional jet fuel consumption with SAF by the end of the decade, also has an agreement with U.S. oil major Chevron Corp CVX.N to buy a test batch of SAF.
(Reporting by Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri)
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