A group of major U.S. carriers is negotiating an agreement to purchase biofuel derived from recycled waste to use on flights out of San Francisco Bay Area airports.

The airlines have signed a letter of intent with Solena Fuels covering ìthe future supply of jet fuel derived exclusively from biomass,î which Solena will produce at a Northern California biomass-to-liquids facility. American Airlines and United Continental Holdings took the lead in the Solena deal, and also signing the letter of intent were Alaska Airlines, FedEx, JetBlue Airways, Southwest Airlines, US Airways and Frontier Airlines, as well as non-U.S. carriers Air Canada and Lufthansa.

The agreement, announced by the Air Transport Association (ATA), represents a significant step in the development of aviation biofuel in the U.S. Solena is already working on similar projects with airlines in the U.K. and Australia.