AMSTELVEEN, Netherlands – Amstelveen, Netherlands-based airline KLM has said it will begin testing kerosene fuel made from algae in the fall.

KLM announced that the Dutch company AlgaeLink has signed an exclusive contract to provide the airline with fuel for the pilot project, Radio Netherlands reported Monday.

The airline said AlgaeLink’s kerosene will initially be mixed with conventional fuel, but the ultimate goal of the project is to fuel 50 planes from KLM’s fleet with full tanks of the algae-based kerosene by 2010.

KLM said it expects to save millions of dollars a year in fuel costs and carbon dioxide fines by switching to the carbon dioxide-neutral fuel.