(Alliance News) - Johnson Matthey PLC and BP PLC on Wednesday said their technology offering has been selected for use in a sustainable aviation fuel plant being built in the US state of Louisiana.

The contract was awarded to the two London-based companies by DG Fuels LLC, a Washington, DC-based producer of renewable hydrogen- and biogenic-based, synthetic low-emissions aviation and diesel fuel. DG Fuels creates sustainable aviation fuel from plant waste, primarily sugarcane bagasse, and its largest customer is Delta Air Lines Inc.

DG Fuels is developing a USD4 billion biofuel manufacturing facility in St. James Parish, Louisiana. This will be capable of producing enough sustainable aviation fuel for more than 30,000 transatlantic flights annually upon starting operations in 2028. In addition to Delta, DG Fuels has signed an offtake agreement with Air France KLM SA.

DG Fuels is planning 10 more such plants across the US.

Chemicals firm Johnson Matthey and oil major BP will provide to DG Fuels their Fischer Tropsch Cans technology, which they co-developed. The FT Cans system converts the synthesis gas derived from biomass to synthetic crude oil. This is then processed into synthetic kerosene, which in turn is blended with conventional jet fuel to produce SAF.

No financial terms were disclosed.

Johnson Matthey shares were up 0.6% at 1,812.00 pence early Wednesday in London. BP was up 0.9% at 521.20p.

By Tom Waite, Alliance News editor

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