July 31 (Reuters) - JetBlue Airways ( JBLU ) said on

Wednesday it agreed to procure sustainable aviation fuel (SAF)

from a unit of U.S. refiner Valero Energy Corp ( VLO ), which

would be distributed by energy firm World Kinect ( WKC ), for

use in flights from New York's airport.

Under terms of the deal, World Fuel Services will provide

the fuel supply to John F. Kennedy International Airport from

the fourth quarter of 2024.

Airlines have been under pressure from environmental groups

to lower their carbon footprint, with the Biden administration

setting targets to boost SAF output and help the domestic

aviation industry shift away from traditional fuels.

As a part of the initial 12-month deal, JetBlue ( JBLU ) is expected

to take delivery of about 3.3 million gallons of blended fuel,

with an option to purchase up to an additional 13.3 million

gallons of blended fuel.

JetBlue ( JBLU ) said the SAF, made from a wide array of feedstocks,

including agricultural wastes and used cooking oils, will be

blended by Valero with conventional jet fuel to create blended

SAF which can lower greenhouse gas emissions by about 80%,

compared to conventional jet fuel.