United Airlines (UA, Chicago O'Hare) says it has acquired an undisclosed shareholding in US-based alternative fuels developer Fulcrum BioEnergy, Inc., for USD30 million. Fulcrum specializes in the development and commercialization of converting municipal solid waste into low-cost sustainable aviation biofuel.

"Investing in alternative fuels is not only good for the environment, it's a smart move for our company as biofuels have the potential to hedge against future oil price volatility and carbon regulations," United's Executive Vice President and General Counsel, Brett Hart, said.

In tandem to the equity purchase agreement, Fulcrum will cooperate with United in setting-up five plants located near the airline’s hubs with the potential to produce up to 681 million litres of commercial-grade fuel per year. The first alternative fuels plant is expected to come online in 2017.

As such, United has also negotiated a long-term supply agreement with Fulcrum which, subject to availability, could see the airline purchase at least 340 million litres of competitively-priced, sustainable aviation fuel a year for a minimum of 10 years.