Airbus has entered into an agreement with Iberia and the Spanish Government to examine the possibility of establishing a biofuel production chain that would eventually result in biofuel for use by commercial airlines in Spain.
Phase one of the project will be a feasibility study, while phase two will narrow down the most promising solutions to demonstration level.
The third phase, which is targeted to begin in 2014, will look at scaling up production of the chosen biofuel.
Earlier this month, Airbus signed a similar agreement with Romania's Tarom, under which it plans to establish a facility in Romania to produce aviation biofuel from the camelina crop.
Airbus is planning to establish at least one such facility on every continent.
The company's head of new energies, Paul Nash, told ATI earlier this month that it is working to secure projects in Asia and Africa, and aims to make another announcement before 2012.