Aviation giants American Airlines and Alaska Air offer joint investment of $150 million in innovative Sustainable Aviation Fuel technology.
The global airline alliance, oneworld, has announced the launch of a new venture aimed at promoting sustainable aviation fuel (SAF). The oneworld BEV Fund, in partnership with Breakthrough Energy Ventures (BEV), Bill Gates' climate technology venture capital fund, seeks to identify and scale breakthrough SAF technologies that can deliver real emissions reductions, compete with fossil-based fuels on cost, and integrate seamlessly with today's aviation infrastructure.
The oneworld BEV Fund, with an initial commitment of $150 million, has been backed by several leading airlines. Alaska Airlines and American Airlines, the alliance's lead investors, are joined by International Airlines Group (IAG), Cathay Pacific, Japan Airlines, and Singapore Airlines, all members of the oneworld alliance.
The fund's focus is on supporting new technologies that can scale the availability of cost-competitive SAF, while minimizing other environmental impacts. It aims to address the insufficient investment to date to scale SAF production at competitive prices in line with market needs. Efforts to increase the production of SAF face barriers including high initial costs and feedstock challenges.
Eric Toone, chief technology officer at Breakthrough Energy and managing partner at Breakthrough Energy Ventures, stated that the oneworld BEV Fund is designed to solve complex systems-level challenges related to SAF. The fund's goal is to scale the availability and lower the cost of jet fuels that can reduce greenhouse gas emissions in aviation.
American Airlines CEO and oneworld Chairman Robert Isom emphasized the importance of reducing emissions from aviation operations. He stated, "Reducing emissions from aviation operations is crucial to meet customer demands, make businesses more competitive, and ensure the continued delivery of economic benefits from commercial aviation for future generations."
The International Air Transport Association (IATA) anticipates that SAF production will double in 2025, but it will still account for only 0.7% of airlines' total fuel consumption. The partners in the new fund are concerned about the lifecycle environmental impact of first-generation SAF and are committed to supporting technologies that can address these concerns.
Breakthrough Energy Ventures (BEV) will serve as the investment manager for the oneworld BEV Fund. The fund's long-term vision and staying power aim to help bring solutions to market, contributing to a more sustainable future for aviation.
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