Aemetis will supply SAF to JetBlue for a period of ten years. Credit: JetBlue Airways.

Renewable fuels company Aemetis has secured a contract from American low-cost airline JetBlue to supply 125 million gallons of blended sustainable aviation fuel (SAF).

Under the contract, which is valued at $530m including incentives, Aemetis will supply the green fuel to JetBlue for a period of ten years.

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JetBlue CEO Robin Hayes said: “JetBlue is proud to lead the aviation industry with its climate and SAF commitments and is encouraged by the continued growth of the SAF market, which will be vital to reaching our own 2040 net-zero target.

“We also recognise the value of California’s renewable fuel incentives that help grow SAF in the state. State and federal incentives encourage clean energy jobs and economic activity, demonstrating that what’s good for our environment is often good for business.”

Beginning in 2025, the SAF will be delivered to San Francisco International Airport as well as other airports in California.

Production of the SAF is planned to take place at the Aemetis renewable jet/diesel plant, which is located at the former US Army Ammunition production plant site in Riverbank, California.

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The jet/diesel plant is currently in the development phase.

Aemetis chairman and CEO Eric McAfee said: “The adoption of SAF to reduce the environmental impact of aviation is a significant megatrend led by JetBlue and other airlines.

“Our production of SAF in California is due to the commitment by California Air Resources Board (CARB) to the success of the California Low Carbon Fuel Standard, creating new investment and jobs in disadvantaged minority communities in the state while improving the environment worldwide.”

Last month, Finnair entered a $70m agreement with Aemetis to purchase 17.5 million gallons of blended SAF.