Renewable fuel producer Aemetis signed an offtake agreement to provide Delta Air Lines with 250 million gallons of low carbon blended sustainable aviation fuel, moving Delta closer to airline carbon neutrality and helping offset renewable fuel compliance costs associated with its refinery.

The SAF fuel supply agreement between Aemetis and Delta follows the Sept. 29 offtake agreement between JetBlue and biofuel developer SG Preston for 670 million barrels of SAF over 10 years beginning in 2023, showing a growing trend in the hard-to-decarbonize airlines sector through fuel supply.

Delta, which has stated previously it is working toward replacing 10% of its conventional jet fuel consumption with SAF by the end of 2030, used 690 million gallons of fuel during Q2 2021 at a total cost of $1.487 billion, according to its July 14 quarterly filing with the Securities and Exchange Commission.

The Biden administration on Sept. 9 proposed a $1.50-$2/gal tax credit for producing SAF, followed by a $1.25/gal tax credit for SAF on Sept. 10 from the Build Back Better Act from the House Ways and Means Committee on Sept. 10.