American Airlines, Google sign record 35-million-gallon sustainable aviation fuel deal

American Airlines and Google have signed what they describe as the largest publicly disclosed sustainable aviation fuel certificate agreement ever announced between an airline and a single corporate customer. This marks a major step in aviation’s push toward lower-carbon operations.

The agreement will support the purchase of 35 million gallons of Sustainable Aviation Fuel (SAF) over the next three years. According to the companies, the fuel is expected to reduce lifecycle greenhouse gas emissions by about 300,000 metric tons of carbon dioxide equivalent.

The fuel will be delivered through existing infrastructure at Chicago O’Hare International Airport, where American Airlines will use it in daily operations. Google will receive the environmental benefits through the SAFc Registry, a system that allows companies to support cleaner aviation fuel even if their employees are not flying on aircraft powered directly by that fuel.

Why Sustainable Aviation Fuel Matters

The aviation industry views Sustainable Aviation Fuel (SAF) as its most important tool for reducing emissions. Industry estimates suggest SAF could deliver about 65% of the emissions reductions needed for aviation to reach net-zero emissions by 2050.

However, production remains limited and costs remain significantly higher than conventional jet fuel.

Google Chief Sustainability Officer Kate Brandt said the partnership sends an important signal to the market.

“By entering into this long-term commitment, we are sending a vital demand signal to catalyze investment and bring more SAF to market.”

American Airlines said the agreement helped secure a long-term fuel supply arrangement with Valero Marketing and Supply Company. The fuel will be produced from waste-based materials, including used cooking oil.

American Chief Sustainability Officer Jill Blickstein said the partnership helps strengthen the market for cleaner aviation fuels.

“By working with leaders like Google who share our commitment to innovation, we’re helping to grow demand for SAF and support the development of a stronger, more resilient market.”

Corporate Demand Becomes Aviation’s New Fuel Partner

The deal reflects a broader trend across aviation. Airlines are increasingly turning to corporations, banks, and large employers to help finance SAF production.

Companies face growing pressure from investors, regulators, and employees to reduce travel-related emissions. Through SAF Certificates, corporations can support cleaner aviation while advancing their own sustainability goals.

Organizations including Bank of America, Aon, Rolls-Royce, Microsoft, and DHL customers have already participated in similar initiatives.

Industry observers say the significance of the American-Google agreement goes beyond fuel volume. Airlines consume billions of gallons annually, making 35 million gallons a small share of overall demand. Yet the financing model could prove transformative.

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