Infinium's supply of electrofuels -- a fossil-based fuel alternative created with carbon waste and renewable power -- will reduce Amazon's carbon emissions for roughly 5 million miles of travel per year, it said.

The tech giant said it plans to initially use the electrofuels in trucks in its middle-mile fleet in Southern California.

The agreement comes after Amazon last month signed a deal with Plug Power Inc for 10,950 tons of green hydrogen every year starting 2025, to help it replace grey hydrogen, diesel, and other fossil fuels.

Amazon invested in Infinium, a renewable electrofuels solution provider, in 2021. It was a part of Amazon's Climate Pledge Fund -- a $2 billion investment program launched in 2020 to invest in companies to help reduce the impact of climate change and support sustainable development.

(Reporting by Chavi Mehta in Bengaluru; editing by Uttaresh.V)