Finnish biofuel producer and oil refiner Neste and Shell Aviation have signed a sustainable aviation fuel (SAF) supply agreement.

The partnership is aimed at significantly increasing the supply and availability of SAF.

According to Neste, the cooperation anticipated increasing demand from airlines to reduce emissions.

Shell Aviation president Anna Mascolo said: “To tackle climate change and reach net zero emissions, the aviation industry must act fast. Shell Aviation aims to reduce the carbon intensity of the fuels we sell, which includes selling more lower-carbon fuels like sustainable aviation fuel, over time.

“Today’s agreement with Neste will help Shell Aviation customers to lower their emissions and demonstrates the kind of progress we can deliver by working in collaboration with others.”

The agreement will take effect from October this year.

It combines the expertise of Neste’s production and supply of renewable diesel and SAF with Shell Aviation’s background in supplying and managing fuel across the world.

Neste Renewable Aviation executive vice-president Thorsten Lange said: “The aviation industry is essential for global business, generating growth and facilitating economic recovery. It also enables people to travel and goods to be transported rapidly across the globe. But if we are to address aviation-related emissions, we need to utilise all the available solutions.

“SAF offers the only viable alternative to fossil liquid fuels for powering commercial aircraft with an immediate potential to reduce aviation’s greenhouse gas emissions.”

Last week, Neste announced that it has sold its 49.99% stake in Swedish oil refiner Nynas to Bitumina Industries for an undisclosed sum.

Last month, Neste signed an agreement with Air BP to provide an increased amount of SAF to airport customers this and next year.