Commenting on the deal, US Agriculture Secretary Tom Vilsack said that by producing aviation fuels from renewable feedstocks, the department will create jobs and will boost the rural economy, by lowering the country’s dependence on foreign oil.

"USDA is pleased to partner with the FAA in our quest to develop alternatives to fossil-based fuel, which is critical to reducing carbon emissions and protecting the environment," added Vilsack.

The USDA National Institute of Food and Agriculture (NIFA) is funding six regional integrated Coordinated Agricultural Projects for the sustainable production of advanced biofuels and biobased products from non-food dedicated biomass feedstocks such as perennial grasses, sorghum, energy cane, oilseed crops, and woody biomass.

Of all the six projects, three projects will focus on the production of aviation fuel, including System for Advanced Hardwood Biofuels in the Pacific Northwest, led by the University of Washington; Northwest Advanced Renewables Alliance, led by Washington State University and Southeast Partnership for Integrated Biomass Supply Systems led by the University of Tennessee.

The agreement inked will support the President Obama’s commitment to clean energy technology, energy independence and job creation.

The federal government and its partners will support the annual production of 1 billion gallons of drop in aviation biofuel by 2018.