Boeing Co said on Thursday it will partner with the U.S. government in a project aimed at addressing challenges faced by Asia Pacific Economic Cooperation (APEC) member countries in developing and scaling use of sustainable aviation fuel (SAF).

The fuel, made out of waste such as cooking oils, municipal waste and agricultural residues, is seen as key in helping the aviation industry cut its carbon emissions.

However, SAF is currently only made in small volumes and costs between three to five times the regular jet fuel. Airlines' current use of SAF represents 0.1% of global jet fuel demand.

Boeing said it will work with the U.S. Department of Transportation and the Federal Aviation Administration to address challenges APEC economies face including identifying availability of feedstocks for SAF and optimizing production.

"Industry studies and data tell us that SAF is essential to meet aviation's net zero commitment, but we need more of it," Boeing Chief Sustainability Officer Chris Raymond said in a statement.

Boeing has purchased 7.6 million gallons of SAF for its U.S. commercial airplane operations since 2022, the company said.

(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Rashmi Aich)