Delta refinery subsidiary strikes deal to convert plastic into jet fuel

Delta Air Lines' oil refinery subsidiary has struck a deal to convert plastic into jet fuel.

Atlanta-based Delta's subsidiary Monroe Energy, which operates an oil refinery in Trainer, Pa., has a new agreement with environmental technology firm Agilyx.

The agreement calls for Agilyx to supply about 2,500 barrels a day of synthetic feedstock converted from waste plastic by 2020.

VIDEO: More on Delta Air Lines

Agilyx uses "an innovative process, reducing the amount of plastic that is currently being landfilled," said Monroe Energy CEO Jeff Warmann in a written statement.

Tigard, Ore.-based Agilyx counts Virgin Group founder Richard Branson as an investor. Branson’s Virgin Atlantic Airways is also a Delta partner.

"This is a major step forward in the search for a cost effective low carbon aviation fuel," Branson said in a written statement. "The beauty of the Agilyx process is it will take waste plastics, which are a major problem for the environment, and turn it into something useful.”

Delta earlier this year announced it was seeking an investment partner for the Trainer refinery,