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Continental Airlines announced plans for the first biofuel-powered demonstration flight of a U.S. commercial airliner, to be conducted in Houston on Jan. 7, 2009.

The demonstration flight, which will be operated with no passengers, will be powered by a special fuel blend including components derived from algae and jatropha plants — sustainable, second-generation fuel sources that don’t impact food crops or water resources, and don’t contribute to deforestation.

Continental has partnered with Boeing ; CFM International, a 50/50 joint company of General Electric Company and Snecma ; refining technology developer UOP , a Honeywell company; and oil providers Sapphire Energy and Terrasol on this project.

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