Boeing says in a news release on Sunday that the program will involve research and development and investments in production of fuels derived from plants that can power aircraft.
Etihad is based in Abu Dhabi, the capital of the United Arab Emirates. The other participants are Takreer, a subsidiary of Abu Dhabi National Oil Co., and the Masdar Institute of Science and Technology, located in Abu Dhabi.
Boeing says Etihad ran a 45-minute demonstration flight on Saturday in a Boeing 777 partially powered by aviation biofuel produced in the UAE.
Boeing also has aviation biofuels programs with U.S. and other airlines.