#USA #Dallas/Fort Worth #Breakthrough Energy #sustainable aviation #oneworld Alliance

Introduction

In a significant move towards sustainability in the aviation sector, the oneworld alliance has joined forces with Breakthrough Energy Ventures (BEV) to establish a new investment fund. Officially launched on September 17, 2025, this fund aims to advance and commercialize technologies related to sustainable aviation fuels (SAF). With the combined efforts of major players such as Alaska Airlines, American Airlines, and other member airlines of the oneworld alliance, the initiative sets forth a comprehensive plan to address the fuel challenges facing the aviation industry today.

Objectives of the Fund

The newly formed oneworld BEV Fund has set forth several ambitious objectives:
1. Invest in Next-Gen Sustainable Fuel Technologies: The fund will focus on identifying and funding innovative technologies that can produce sustainable aviation fuels at scale.
2. Support Growth of Alternative Fuel Markets: By investing in SAF technologies, the fund aims to bolster the market for alternative fuels to meet the long-term needs of the global aviation industry.
3. Create Economic Value: The initiative seeks to create value not only for its investors but also for regions across the globe, providing economic growth through the development of sustainable fuels.
4. Foster Technological Innovation: The fund will also play a pivotal role in stimulating technological advancements within the aviation fuel sector.
5. Develop a Resilient Supply Chain: A major goal is to establish a diverse and resilient supply chain for SAFs to meet increasing future demand.

Industry Context

The aviation industry is a vital contributor to the global economy, generating approximately $4.1 trillion in economic activity and supporting nearly 86.5 million jobs. However, it also accounts for around 2-3% of global carbon dioxide emissions. As the demand for air travel is projected to rise in the coming decades, finding eco-friendly fuel alternatives becomes increasingly essential. Sustainable aviation fuels, which can reduce lifecycle emissions by up to 80% compared to conventional kerosene, are seen as a crucial solution to mitigate the environmental impact of this industry.

Despite their potential, the current generation of SAF faces challenges regarding high production costs and limited availability. Initiatives like the oneworld BEV Fund are critical for attracting the necessary investments to scale up SAF production at competitive prices, thus ensuring a viable supply chain for the future.

Remarks from Industry Leaders

Robert Isom, CEO of American Airlines and President of oneworld, emphasized the commercial necessity of investing in future SAF technologies. He stated, "Investing in future SAF technologies is not just a strategic move; it’s essential for meeting customer demand while maintaining economic competitiveness in a rapidly changing aviation landscape."

Ben Minicucci, CEO of Alaska Air Group, expressed excitement about collaborating with global oneworld carriers to innovate SAF technology. He highlighted the long-term energy transformation required for the industry and the expertise BEV brings to making effective investment decisions.

Nat Pieper, CEO of oneworld, noted that this collaborative effort unites airlines in their longstanding mission to decrease carbon emissions and speed the market entry of innovative fuels worldwide. He commented, "By working together, we're better positioned to create lasting solutions for the energy transformation of an industry crucial to global economic growth."

Role of Breakthrough Energy Ventures

Breakthrough Energy Ventures, founded by Bill Gates, is tasked with managing the oneworld BEV Fund. BEV is known for its profound technical expertise and rigorous diligence process in investing in climate technology startups. Eric Toone, the Chief Technology Officer at Breakthrough Energy, stated, "The oneworld BEV Fund is established to revolutionize SAF technologies that can realistically reduce emissions and integrate seamlessly into today’s aviation infrastructure."

Call for Collective Action

The fund has received support not just from member airlines but also from external investors, including Singapore Airlines, further illustrating the shared commitment to transforming the aviation fuel landscape. Luis Gallego, CEO of IAG, remarked on the importance of collective action in accelerating the development of sustainable aviation fuel.

Conclusion

The establishment of the oneworld BEV Fund marks a crucial step in the journey towards a more sustainable aviation industry. It embodies a commitment from leading airlines to collaborate and invest in technologies that not only reduce carbon emissions but also promote economic growth and innovation in the aviation sector. By addressing the current limitations of sustainable aviation fuels, this initiative aims to ensure a greener future for air travel that can support generations to come.