Hicran
December 16, 2009

A “core group” of 15 airlines have agreed to buy alternative aviation fuel from two producers, the Air Transport Association of America announced Tuesday.

One of the companies, Seattle-based AltAir Fuels, announced it had entered into a memorandum of understanding to negotiate the purchase of up to 750 million gallons of renewable jet fuel and diesel derived from camelina with Air Canada, American Airlines, Atlas Air, Delta Air Lines, FedEx Express, JetBlue Airways, Lufthansa German Airlines, Mexicana Airlines, Polar Air Cargo, United Airlines, UPS Airlines, US Airways, Seattle-based Alaska Airlines and Hawaiian Airlines.

Rentech, Inc. has signed an agreement with the same airlines as AltAir, except Alaska and Hawaiian, and also inked a deal with AirTran Airways.

“We commend the ATA and its member airlines’ commitment to reducing carbon emissions and the leadership role they have taken in the airline industry,” AltAir Chief Executive Tom Todaro said in a news release. “Our camelina-based fuels will reduce emissions, provide American farmers additional revenue sources, while creating hundreds of new jobs and reducing our dependency on imported oil. We look forward to replicating this model in other parts of the country and the world in the coming years.”

Glenn Tilton, chairman of the ATA, and chairman, president and chief executive of UAL Corp., noted in a news release that discussions with a number of additional alternative-fuel producers about other projects are underway, along with talks with the U.S. military regarding cooperative opportunities.

“Today’s announcement reinforces the proactive steps that airlines are taking to stimulate competition in the aviation fuel supply chain, contribute to the creation of green jobs, and promote energy security through economically viable alternatives that also demonstrate environmental benefits,” he said. “Our intention as an airline industry is to continue to do our part by supporting the use of alternative fuels. We urge the U.S. government and the investment community also to do their part to further support this critical energy opportunity.”