Neste and Shell Aviation said Wednesday they have signed a supply agreement for sustainable aviation fuel (SAF), anticipating increasing “desire” from airlines to reduce emissions.

In a joint statement, the companies said the agreement would “significantly” boost the supply and availability of SAF for the aviation industry from next month. They didn’t disclose volumes and financial terms of the transaction.

The aviation sector is among the so-called hard-to-decarbonize industries, but to meet global climate targets, new fuels and technologies must be developed and deployed, Kallanish Energy notes.

SAF is a clean substitute for fossil jet fuels. It’s produced from sustainable feedstocks such as waste oils, agri residues or non-fossil CO2.

The deal brings together Neste’s expertise in producing and supplying renewable diesel and SAF, with Shell Aviation’s world-class credentials in supplying and managing fuel around the world.

Shell Aviation’s president, Anna Mascolo, said that to tackle climate change and reach net zero emissions, the aviation industry “must act fast.”  The company aims to reduce the carbon intensity of the fuels it sells, and intends to sell more “lower-carbon fuels like sustainable aviation fuel, over time.”

Thorsten Lange, vice president for Renewable Aviation at Neste, defended that SAF offers “the only viable alternative” to fossil liquid fuels for powering commercial aircraft with an immediate potential to reduce aviation’s greenhouse gas emissions.

Neste MY Sustainable Aviation Fuel™ reduces greenhouse gas emissions by up to 80% compared to fossil jet fuels. It can be used as a drop-in fuel with existing aircraft engines and airport infrastructure, requiring no extra investment, according to Neste.

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