American Airlines (NASDAQ: AAL) and Google announced an agreement for sustainable aviation fuel certificates representing 35 million gallons of fuel over three years. The companies described the arrangement as the largest publicly announced sustainable aviation fuel certificate agreement between an airline and a single corporate customer.

Under the agreement, American will purchase physical fuel for Chicago O'Hare International Airport, with the sustainable aviation fuel portion produced from waste feedstocks including used cooking oil. Google will receive environmental benefits through the SAFc Registry to address emissions from employee business travel. The arrangement is expected to result in nearly 300,000 metric tons of carbon dioxide equivalent emissions reductions.

The agreement enabled American to secure a new long-term sustainable aviation fuel contract with Valero Marketing and Supply Company. Illinois enacted a sustainable aviation fuel tax credit that helped facilitate the deal, according to the announcement.

"Our industry-leading agreement with Google is a critical step forward in reducing emissions from our operations," said American's Chief Sustainability Officer Jill Blickstein.

Google's Chief Sustainability Officer Kate Brandt said the collaboration demonstrates how companies can work together to scale sustainability technologies and send demand signals to bring more sustainable aviation fuel to market.

Sustainable aviation fuel can reduce emissions by up to 80% compared to traditional jet fuel, according to the companies. The fuel is produced from feedstocks including waste oil and fats, and can also be produced synthetically using captured carbon dioxide and renewable electricity.

The aviation industry accounts for approximately 2-3% of global carbon dioxide emissions while generating more than $4 trillion in economic activity annually and supporting 86.5 million jobs, according to the announcement.