Finland’s flag carrier Finnair has signed a $70m contract with renewable fuels company Aemetis to procure 17.5 million gallons of blended sustainable aviation fuel (SAF).

The SAF will be delivered to San Francisco International Airport under a seven-year agreement.

Finnair Sustainability senior vice-president Eveliina Huurre said: “Finnair has set an ambitious long-term target to fly carbon neutral in 2045 and SAF is an important part of the toolkit for reaching this target.

“Supporting SAF adoption is key to boosting the supply and demand for SAF and for increasing its usage in commercial aviation. The agreement also underlines the oneworld Alliance’s commitment to collectively source SAF.”

The SAF will be produced at the Aemetis renewable jet/diesel plant, which is currently in the development phase at a former US Army Ammunition production plant site in Riverbank, California, US.

Aemetis would start the deliveries of the blended SAF to Finnair in 2025.

The blended SAF will be a combination of 40% SAF and 60% Petroleum Jet-A to comply with international blending standards.

Aemetis chairman and CEO Eric McAfee said: “The supply of SAF to Finnair is a part of $2bn of contracts with oneworld Alliance members to reduce the environmental impact of aviation.

“Our production of low carbon aviation fuel in California is made possible by the historical success of the California Low Carbon Fuel Standard, creating new investment and jobs in disadvantaged minority communities in the state.”

Earlier this month, Aemetis signed an offtake agreement with Qantas Group and Qantas Airlines for the supply of SAF.

Under the agreement, Qantas will receive 35 million gallons of blended SAF.