To British Airways, using cooking oil as fuel is not a half-baked idea.

British Airways announced on Thursday it signed an agreement with a U.K. refinery that turns recycled cooking oil and other household waste into fuel as part of an effort to make air travel more sustainable. Thousands of tons of sustainable aviation fuel will be produced in the United Kingdom for the first time, the airline said.

"This agreement marks another important step on our journey to net-zero carbon emissions and forms part of our commitment, as part of International Airlines Group, to power 10% of flights with [sustainable aviation fuel] by 2030," said Sean Doyle, British Airways CEO, in a press statement.

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The airline signed a multiyear agreement with the Phillips 66 Humber refinery, based in North Lincolnshire, to produce sustainable aviation fuel in the future. While the fuel will still produce carbon emissions, British Airways said it will reduce the "lifecycle CO2 emissions" by 80% compared to traditional jet fuel.

The Phillips 66 Humber refinery said it will be the first in the U.K. to produce sustainable aviation fuels at a significant scale.

"We're currently refining almost half a million litres of sustainable waste feedstocks a day, and this is just a start. Markets for lower-carbon products are growing, and this agreement demonstrates our ability to supply them," said Darren Cunningham, the refinery's general manager.

International Airlines Group, British Airways's parent company, announced in April plans to invest $400 million over 20 years into developing sustainable aviation fuels for its airlines.

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Cooking oil-based fuel is not a new development. Air France announced in May that a flight to Canada used sustainable aviation fuel to complete the seven-hour flight.

The United States has also taken steps toward pursuing alternative fuel resources. The Biden administration announced plans in September to "produce three billion gallons of sustainable fuel, reduce aviation emissions by 20% by 2030 and grow good-paying, union jobs."