American Airlines and Google Announce Record-Breaking SAF Partnership to Cut Emissions

An American Airlines plane taxis at Chicago O’Hare International Airport in the northwest side of Chicago, Illinois on January 15, 2026. (Photo by Daniel SLIM / AFP via Getty Images)

AFP via Getty Images

Transforming yesterday’s french fries into tomorrow’s fuel, American Airlines and Google have finalized the largest publicly announced sustainable aviation fuel (SAF) certificate agreement between an airline and a single corporate customer. The three-year deal will support 35 million gallons of SAF, primarily sourced from waste feedstocks like used cooking oil.

This landmark agreement supports corporate sustainability goals while advancing airlines’ efforts to meet net-zero 2050 targets, creating new markets for fuels produced from materials that would otherwise go to waste.

The partnership builds on an existing collaboration between the airline and tech giant focused on aviation decarbonization, including joint efforts to reduce contrail formation, a significant contributor to climate warming.

The SAF deal is expected to reduce lifecycle greenhouse-gas emissions by nearly 300,000 metric tons of carbon dioxide equivalent. “Our industry-leading agreement with Google is a critical step forward in reducing emissions from our operations,” said American Airlines Chief Sustainability Officer Jill Blickstein. “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.”

The agreement enables American Airlines to secure long-term SAF supply through Valero Marketing and Supply Company, with deliveries routed through Chicago O’Hare International Airport. Illinois was chosen for the program due to state-level tax incentives, as Governor JB Pritzker and the Illinois General Assembly have enacted an SAF tax credit.

“Illinois is proud to be at the forefront of the clean energy industry. This agreement demonstrates how our nation-leading SAF tax credit can bring industry leaders together as we work toward a more sustainable future,” said Pritzker. “Through partnerships with innovators like American Airlines and Google, we’re strengthening Illinois’ role as a global aviation hub and accelerating the transition to cleaner energy.”

SAF production relies heavily on recycled feedstocks, including waste fats, oils and greases from sources like used cooking oil. These materials are refined into jet fuel with lifecycle emissions up to 80% lower than conventional jet fuel.

This process diverts waste streams from landfills and wastewater systems, converting them into sustainable aviation fuel.

Google’s commitment supports its broader corporate sustainability initiatives, particularly emissions from employee business travel. The company will use SAF certificates to stimulate demand and expand production capacity. “This strategic collaboration with American Airlines demonstrates how companies can work together to scale critical sustainability technologies,” said Google Chief Sustainability Officer Kate Brandt. “By entering into this long-term commitment, we are sending a vital demand signal to catalyze investment and bring more SAF to market.”

Google’s SAF efforts extend beyond this partnership, including support for production in Singapore, a long-term agreement with AMEX and Shell, and investment in the United Airlines Ventures Sustainable Flight Fund.

Despite growing recognition as a key aviation decarbonization tool, SAF production remains limited and significantly more expensive than conventional jet fuel. Aviation currently consumes far more fuel than SAF producers can supply.

Industry groups, including the International Air Transport Association, emphasize that scaling SAF production requires additional investment, supportive policies, and long-term commitments. IATA estimates global SAF production will only meet 0.8% of airline fuel demand this year, with supply costs reaching $4.3 billion.

“It looks to be another disappointing year for SAF production,” said IATA Director General Willie Walsh. “Five years after committing to achieve net zero by 2050, SAF production will only account for 0.8% of airline fuel use this year. The path to meeting 65% of our needs in 2050 is growing more difficult with each year of ineffectively sequenced government policies and oil companies’ lack of interest.”

Corporate purchasing agreements like Google’s help create predictable demand, encouraging fuel producers to invest in additional capacity. These partnerships enable airlines to secure supply while helping companies address business travel emissions.