BP will invest $30 million in Fulcrum BioEnergy, which makes transportation biofuels from waste, and buy 500 million gallons of renewable jet fuel over 10 years in an effort to curb aviation emissions.
Under the agreement, Air BP, the oil giant’s aviation division, will supply the biofuel to its commercial and military aviation customers across North America.
“The aviation industry has set ambitious lower carbon goals. This agreement gives Air BP guaranteed access to low-carbon jet fuel to help our customers meet these goals,” said Jon Platt, Air BP CEO in a statement.
Last month the UN’s aviation arm ratified the first-ever global limits on commercial aircraft emissions. The deal will use airlines’ 2020 emissions as the benchmark and require the industry to offset about 80 percent of emissions above 2020 levels by 2035.
Biojet fuels will be key to achieving these emissions goals, account for 56 percent of the targeted CO2 emissions reductions, according to Lux Reseach.
Shortly before the global aviation industry reached its emissions deal, JetBlue announced a 10-year purchase agreement to buy more than 330 million gallons of renewable jet fuel from bioenergy company SG Preston.
Fulcrum CEO E. James Macias said the BP partnership will accelerate development of Fulcrum’s second and third waste-to-fuel plants.
The BP investment is Fulcrum’s fourth major corporate investment, following similar deals with United Airlines, Waste Management and Cathay Pacific.
The deal comes as oil majors including BP are facing increasing pressure to invest in low-carbon technologies, spurred by the Paris climate agreement and other emissions regulations.
Last Friday 10 oil and gas companies including Shell, BP, Statoil and Total today said they will invest $1 billion in carbon capture and other low-emissions technologies over the next 10 years.