(Reuters) – JetBlue Airways said on Wednesday it agreed to procure sustainable aviation fuel (SAF) from a unit of U.S. refiner Valero Energy Corp, which would be distributed by energy firm World Kinect, for use in flights from New York’s airport.
Under terms of the deal, World Fuel Services will provide the fuel supply to John F. Kennedy International Airport from the fourth quarter of 2024.
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.
As a part of the initial 12-month deal, JetBlue is expected to take delivery of about 3.3 million gallons of blended fuel, with an option to purchase up to an additional 13.3 million gallons of blended fuel.
JetBlue said the SAF, made from a wide array of feedstocks, including agricultural wastes and used cooking oils, will be blended by Valero with conventional jet fuel to create blended SAF which can lower greenhouse gas emissions by about 80%, compared to conventional jet fuel.
(Reporting by Kannaki Deka in Bengaluru; Editing by Shailesh Kuber)
