Renewable fuels company Aemetis has entered an offtake agreement with Qantas Group and Qantas Airlines for the supply of sustainable aviation fuel (SAF).

As part of the seven-year agreement, Qantas will receive 35 million gallons of blended SAF, consisting of 40% SAF and 60% Petroleum Jet A. It will comply with international blending standards, Aemetis said.

Including incentives, the contract is worth around $250m.

This agreement is said to support Qantas’ 2050 target for net-zero emissions.

Qantas Group CEO Alan Joyce said: “Climate change is front of mind for Qantas, our customers, employees and investors, and it is a key focus for us as we move through our recovery from the pandemic.

“Operating our aircraft with sustainable aviation fuel is the single biggest thing we can do to directly reduce our emissions.”

Aemetis intends to produce green fuel at its renewable jet/diesel plant. This plant is being developed on a 125-acre former US Army Ammunition production plant site located in Riverbank, California.

The company is planning to begin the delivery of SAF to Qantas in 2025.

Aemetis Carbon Zero production plant in Riverbank plant uses 100% renewable electricity. With the help of injection wells, the facility will segregate CO₂ from the production process.

Aemetis chairman and CEO Eric McAfee said: “Our supply of SAF to the San Francisco International Airport is supported by the California Low Carbon Fuel Standard, creating new investment and jobs in disadvantaged minority communities in the state.”

In November last year, Aemetis signed agreements with eight airline members of the oneworld Alliance for the supply of SAF.