Breakthrough Energy Ventures (BEV), oneworld alliance, and several member airlines announced Wednesday that they are launching a new investment fund aimed at advancing and commercializing sustainable aviation fuel (SAF) technologies.
The fund is backed by cornerstone investors Alaska Airlines and American Airlines, along with support from International Airlines Group, Cathay Pacific, Japan Airlines, and Singapore Airlines, for an initial close of $150 million. According to the alliance, the fund will identify and scale next-generation SAF solutions designed to reduce emissions while remaining cost-competitive with conventional fuels.
The group said the oneworld BEV Fund will focus on technologies capable of meeting the long-term fuel demands of the aviation industry.
“By investing in the SAF technologies of the future, American and our oneworld partners are making a business decision to accelerate the development of novel technologies with the potential to reach larger scale at lower prices,” said Robert Isom, CEO of American Airlines and chairman of oneworld.
Alaska Airlines CEO Ben Minicucci added that the partnership with BEV brings “scientific, technical and commercial expertise to make effective investment decisions that will create the market for next-generation fuels.”
Breakthrough Energy Ventures, founded by Bill Gates, will manage the fund, bringing experience in supporting early-stage climate technologies.
“The oneworld BEV Fund is built to identify and scale breakthrough SAF technologies that can deliver real emissions reductions for jet fuel, compete with fossil-based fuels on cost, and integrate seamlessly with today’s aviation infrastructure,” said Eric Toone, chief technology officer at Breakthrough Energy.
As global air travel demand continues rising, oneworld noted that a scalable and resilient SAF supply chain will be essential if the industry is to meaningfully reduce emissions. The sector currently accounts for around 2 to 3 percent of carbon dioxide output globally.
The European Commission (EC) also announced on Wednesday that it would allocate about €100 million worth of EU Emissions Trading System (ETS) allowances across 53 airlines to help cover the cost difference between fossil kerosene and sustainable aviation fuels, as part of its new support system to accelerate SAF adoption.
The oneworld fund and EC allowances scheme come in the wake of both SAF manufacturing setbacks as well as continued pressure on the industry from governments and regulators to reduce emissions in line with various international climate agreements. In 2022, the International Civil Aviation Organization (ICAO) adopted a goal for global aviation to reach net-zero carbon emissions by 2050, with many countries introducing incentives and mandates to expand the use of SAF. The International Air Transport Association adopted a similar net-zero goal for its members in 2021.
0 replies