Lufthansa has signed an MoU with Solena Fuels Corp. of Washington, D.C., to work towards “a long-term, bankable offtake agreement” for bio-synthetic paraffin kerosene to use as a certified, drop-in fuel for commercial flights.

Solena will locate its first sustainable biofuel facility in Germany at Schwet/Oder, on the Polish border. The refinery will use the Fischer-Tropsch process to convert 520,000 tonnes a year of waste biomass that would otherwise have gone to landfills or incinerators into synthetic jet and diesel biofuels, and electricity.

Lufthansa agreed to jointly develop the sustainable alternative fuel supply, including delivery to Berlin Brandenburg Airport. The airline has more experience than any in the use of biofuels, having run a prolonged test last year on 1,187 commercial flights between Frankfurt and Hamburg in an A321.

Solena earlier signed a similar agreement with British Airways that will produce 50,000 tonnes of biofuel in the U.K. from 2014 or 2015.