Qantas Airways has signed a contract with US-based renewable energy company Solazyme to study the sustainability of algae-based aviation fuel.
Under the agreement, Qantas and Solazyme will work together for the next 12 months to develop a business case for the introduction of the fuel technology in Australia, says the carrier.
Qantas also has a similar arrangement with Washington DC-based Solena group for waste-based sustainable fuel.
The agreements are part of a review of clean fuel technology being carried out by Qantas as it seeks to identify partners in this area.
"The costs and environmental impacts associated with traditional jet fuel mean it is imperative that we push hard now for the commercialisation of alternative fuel sources," says Qantas chief executive Alan Joyce.
"Qantas will be assessing the feasibility of each of these technologies against stringent commercial and sustainability criteria."