A unique partnership between leading oneworld partner airlines and Breakthrough Energy Ventures has seen the consortium launch its own investment fund to advance and commercialize the technology behind Sustainable Aviation Fuel (SAF).
Backed by Alaska Airlines, American Airlines, IAG (British Airways, Iberia, Vueling, Aer Lingus, and LEVEL), Cathay Pacific, and Japan Airlines, have thrown in a total of $150 million to fund the programme. This has also been backed by a Star Alliance airline member, Singapore Airlines.
A Partnership With Breakthrough Energy Ventures
Announced on September 17, in Dallas, Texas, the oneworld alliance, and member airlines (plus SQ), have forged a partnership with Breakthrough Energy Ventures, an umbrella company founded by Bill Gates ten years ago (2015), with a vision to accelerate innovation through sustainable energy, and reduce greenhouse gas emissions through new technologies.
The partnership will launch a new investment fund that is specifically designed to address the high costs and scarce availability of Sustainable Aviation Fuel (SAF). This fund, which is led by Alaska Airlines and American Airlines as ‘cornerstone investors’, will bid to accelerate the development of longer-term aviation fuel solutions at scale. Robert Isom, chief executive officer of American Airlines and chairman of oneworld, explained:
“By investing in the SAF technologies of the future, American and our oneworld partners are making this business decision to unlock novel technologies with the potential to reach larger scale at lower prices than current technologies can achieve.
“We believe reducing the emissions from our operation meets the demands of our customers, will make our business more competitive, and will enable us to continue to deliver the enormous economic benefits of commercial aviation for generations to come.”
Understanding The BEV Fund:
The structure of the Breakthrough Energy Venures (BEV) fund, is set to provide global development of fuel solutions that are cost effective, long-term, lower emmission fuels when compared with traditional jet-fuel. This will be developed by investing in new neovel, next generation fuel technologies, while supporting the growth of alternative fuel markets.
It’s no secret that the aviation industry must look to adapt to new ways of thinking and operating, with alternative, more sustainable fuel options. The BEV fund is expected to create economic value for all of its investors and the regions in the world to which its airline partners operate.
Alaska Airlines, a cornerstone investor, has already noted its excitement to partner with this innovative fund to contribute to the development of innovative SAF technology. Its partnership with BEV will bring the scientific, technical, and commercial expertise required to help develop next-generation fuels for the decades ahead.
Next-Generation Thinking For the Aviation Industry
As analysed by oneworld, the global aviation industry generates more than $4.1 trillion in economic activity around the world, and as a result supports more than 85 million jobs. However, the industry accounts for around 2-3% of all carbon dioxide emissions globally, in addition to other environmental impacts.
Airlines are now looking to address how they can limit their footprint on the environment by investing in more modern, fuel-efficient aircraft. Demand for air travel shows no signs of slowing and is expected to rise. As a result, sustainable aviation fuel is necessary to be the tool to limit continued environmental impacts.
Using SAF can decrease carbon dioxide emissions significantly; however, the fuel is yet to attract the necessary investment to scale production at competitive prices. oneworlds bold step, will be a new chapter in this story, with the alliance airlines partners, focussed on supporting the initative.
