Takeaways

• Google and American Airlines have entered a long-term corporate SAF deal to support the growth of sustainable aviation fuel and reduce aviation emissions.
• The agreement aims to strengthen demand for SAF, a key tool for aviation decarbonization and achieving net-zero emissions targets.
• Industry experts say corporate participation could help scale SAF production and accelerate the transition to cleaner air travel.

Google and American Airlines have announced a long-term agreement for the purchase of Sustainable Aviation Fuel (SAF), marking another step toward reducing emissions from the aviation sector. The deal reflects growing efforts by major companies to support cleaner fuel alternatives as the industry works toward ambitious climate goals.

Under the agreement, American Airlines will purchase SAF produced from waste materials such as used cooking oil. The fuel will be delivered to Chicago O’Hare International Airport, helping the airline reduce emissions from its operations while supporting the development of a larger SAF market.

The announcement comes at a time when the aviation industry faces significant challenges in meeting climate commitments. In its 2024 ESG report, American Airlines acknowledged concerns about the pace of aviation decarbonization and the company’s ability to meet both interim climate goals and its 2050 net-zero emissions target.

Read More: Global Carriers Unite in Fund to Expand Sustainable Jet Fuel Supply

Although SAF is widely viewed as one of the most effective solutions for cutting aviation emissions, adoption remains limited. According to the International Air Transport Association (IATA), SAF accounted for only 0.6% of global jet fuel consumption in 2025. While production doubled last year, growth is expected to slow in 2026, with SAF projected to represent just 0.8% of total jet fuel use.

Despite its small share of the market, SAF can reduce lifecycle emissions by up to 80% compared with conventional jet fuel. American Airlines Chief Sustainability Officer Jill Blickstein described the new corporate SAF deal as an important move that will help lower operational emissions while encouraging broader investment in sustainable fuel production.

The agreement also benefits from an Illinois state SAF tax incentive, which helps narrow the cost difference between SAF and traditional aviation fuel.

Industry analysts believe the United States is becoming a key market for SAF adoption. According to BloombergNEF Renewable Fuels Analyst Jade Patterson, U.S. policy incentives make the country attractive for companies looking to support cleaner aviation fuels. He noted that expanding fuel supply requires stronger demand from corporate buyers.

Google will receive and monitor its environmental benefits through SAF certificates managed by the SAFc Registry. The registry was developed through collaboration among several organizations, including the Rocky Mountain Institute, Environmental Defense Fund, Energy Web, and the Sustainable Aviation Buyers Alliance.

Google said long-term purchasing commitments are essential for increasing SAF production. The company believes that sustained demand signals can encourage investment and help bring more sustainable fuel to market.

This is not Google’s first move in the sector. Earlier this year, the company signed another long-term SAF agreement involving travel and aviation partners and has supported initiatives aimed at building SAF markets and advancing related technologies.

Also Read: Korean Air and Yusen Take on SAF Cargo

Experts suggest that more companies may consider similar agreements in the future. As businesses pursue net-zero emissions goals, SAF remains one of the few available pathways for reducing aviation-related emissions. Growing participation from corporations like Google could therefore play a crucial role in accelerating sustainable aviation fuel adoption and advancing broader aviation decarbonization efforts.

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Source: ESGDIVE