Star Alliance carrier SAS Scandinavian Airlines has signed a letter of intent with Swedish biofuels supplier Preem, with the aim of firming this into a binding cooperation agreement by September.

“SAS has the ambition to replace today’s fuel volume for domestic aviation with biofuel by 2030,” SAS said in a statement.

Preem is planning to expand the capacity of its Gothenburg refinery, as it works to develop biofuels based on Swedish forest residues. The company is aiming to produce 3 million cubic meters of biofuels by 2030.

The two companies will work together to produce the biofuel, which should be available from 2022, reserving a proportion for aviation use.

“By September 2018, the parties will meet a binding and more detailed cooperation agreement. If the continued work goes well, SAS and Preem intend to also agree on future long-term supply contracts for biojet,” SAS said.

Victoria Moores victoria.moores@informa.com