US-based Boeing and Brazil-based Embraer have signed an agreement with the Sao Paulo State Scientific Research Federation (FAPESP), the Brazilian state-run scientific research foundation, to collaborate on long-term aviation biofuels-related research and development.

Under the agreement, the two aircraft makers and FAPESP will prepare a report for the development of a cost-effective, bio-derived, and sustainable jet-fuel production and distribution industry in Brazil.

The study will take input from airlines, fuel producers and suppliers, environmental experts, community groups and government agencies.

The study will also lead to creation of a sustainable aviation biofuels research centre in Brazil which will be jointly funded by FAPESP and industry bodies.

The aim of the research centre will be to bridge the technical, commercial, and sustainability gaps required for establishing a new aviation fuel supply chain in Brazil.

Azul, GOL, TAM and Trip airlines will be strategic advisers in the programme.