US-based airline giant United Airlines has inked a purchase agreement with fuel maker AltAir Fuels forprocuring bio-fuels to be used for flights from its Los Angeles airport hub.

As per the terms of the agreement, AltAir will deliver 15 million gallons of renewable jet fuel to United over the next three years starting 2014. The fuel producer plans to cater to the deal by shipping five million gallons bio-fuel per year.

AltAir chief executive officer Tom Todaro stated that the alliance was a milestone in commercial usage of sustainable aviation biofuels.

"United Airlines has been a strategic partner for several years as we work to establish our biofuel facility," added Todaro.

United global environmental affairs and sustainability managing director Jimmy Samartzis stated: "This agreement underscores United’s efforts to be a leader in alternative fuels as well as our efforts to lead commercial aviation as an environmentally responsible company."

To facilitate the agreement, AltAir Fuels will transform a section of its existing petroleum refinery near Los Angeles, California to further its bio-fuel production capacity to 30 million gallon. The company is planning to use processing technology by Honeywell’s UOP to retrofit the refinery.

Meanwhile, AltAir has forged a deal with an oil refiner to secure idled refining equipment and retooling it to increase the nation’s energy supply, the company stated.