The duo reached a memorandum of understanding (MoU) in this regard, with plans to make the green fuel commercially scalable.
This SAF will be used for flight tests on a Rolls-Royce Pearl engine.
During the trial, Rolls-Royce will assess the energy efficiency, low-carbon credentials and emissions criteria of the SAF.
Rolls-Royce Business Aviation Strategy and Future Programmes senior vice-president Frank Moesta said: “The use of Sustainable Aviation Fuel as a low-emission solution and its global commercial deployment is essential to the decarbonisation of medium to long-haul air travel.
“While we are also working on electrification, hybrid-electric and hydrogen technologies as long-term alternatives, rapid decarbonisation is within reach through this critical pathway.
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“Through our partnership with Alder Fuels, we are taking the next steps on our journey to net zero and are committed supporters of the UN Race to Zero goal of 10% SAF use across aviation by 2030.”
Alder Fuels uses biomass such as regenerative grasses, forest residues and agricultural waste products to create low-carbon Alder Greencrude (AGC) and converts it into a drop-in SAF utilising bio and petroleum refinery infrastructure.
The company said that its end product has the ability to reduce greenhouse gas emissions by more than 80% in comparison to fossil-based jet fuel.
This SAF will serve as a replacement for petroleum-based jet fuel.
Alder Fuels president and CEO Bryan Sherbacow said: “Our hope is that this collaboration will not only mark an important milestone for the decarbonisation of aviation but that it will send a strong global signal to the market that the future of sustainable flight is here and the time to transition is now.”