Scope of the collaboration will include development, assessment and promotion of aviation fuels derived from Algae Oil in the Chinese aviation market.

Commenting on the collaboration EADS chief technology officer Jean Botti termed Microalgae to be one of the most promising options to produce aviation bio-fuel.

"We have already proved that it is technically possible to fly with Algae Oil.

"Now we need to demonstrate that the industrial production of algae based biofuel is both ecologically and economically viable," said Botti.

ENN Group CTO Dr. Zhongxue Gan added, ""Sustainability is crucial to our environment and the global community. ENN, as a clean energy provider, and Airbus, as an energy consumer, have been striving to make sure that algal jet fuel can be delivered and used to reduce carbon emissions for the airline industry."

The alliance plans to carry out test flights using ENN’s Algae Oil in the second phase of collaboration expected to start in 2013.