DUBAI, Oct. 16 (Xinhua) -- United Arab Emirates (UAE) national carrier Etihad Airways and Abu Dhabi Waste Management Centre, known as Tadweer, agreed to collaborate on a research project to explore turning municipal waste into jet fuel, state news agency WAM reported Tuesday.

Etihad and Tadweer has signed a Memorandum of Understanding (MoU) on the project, which aims to use the final jet fuel on Etihad Airways' flights, the report said.

Under the deal, the two sides will conduct an initial feasibility study on establishing a flagship waste-to-fuel facility in Abu Dhabi.

Mohammad Al Bulooki, chief operating officer of Etihad Aviation Group, said that turning waste into biofuel is a cutting-edge technology, which Etihad Airways believes will have "a profoundly positive impact" on the aviation industry, while also providing waste management more solutions and a cleaner environment.

"The adoption and up-scaling of sustainable energy supplies is a crucial step towards reducing Etihad Airways' dependency on fossil fuels, allowing the airline to grow sustainably and offset carbon emissions," he added.

Salem Al Kaabi, acting general manager of Tadweer, said the MoU is in line with the National Agenda of the UAE Vision 2021 and the Abu Dhabi Waste Master Plan 2040 that aims to divert 75 percent of municipal solid waste away from landfills.

In addition to the environmental benefits, the project has economic advantages, and the cost of production could be as low as 50 percent of average international oil prices.

According to recent industry estimates, the long-term production of sustainable and renewable jet fuel could allow Etihad Airways to reduce its carbon emissions by up to 90 percent.?