Finland-based refiner and renewable fuel producer Neste Oyj announced Oct. 11 that it had entered into an agreement with BP PLCs aviation fuel subsidiary Air BP Ltd to explore opportunities to bring a co-branded sustainable aviation fuel to market.

The partnership would rely on Neste's expertise in producing and blending renewable jet fuel and Air BP's global customer relationships, supply chain expertise, certification and quality assurance capabilities.

Sustainable aviation fuel is made by blending conventional kerosene with renewable hydrocarbons, such as those produced from recycled cooking oil. The blend is then certified as "Jet-A1" fuel that can be used in aircraft without any technical modification.

The International Civil Aviation Organization has sought to limit the sector's growth in carbon emissions. Burning sustainable aviation fuel is less carbon-intensive.

Experts expect jet fuel is among the few refined products that will experience consistent demand growth through 2040, but a shift toward biofuels poses a risk to that outlook.