#USA #Sustainable Aviation Fuel #Dallas/Fort Worth #oneworld Alliance #Breakthrough Energy Ventures

Introduction

In a major move for the aviation sector, the oneworld alliance, together with its member airlines and Breakthrough Energy Ventures (BEV), has officially launched a significant investment fund. This initiative seeks to transform the future of air travel by funding Sustainable Aviation Fuel (SAF) technologies, addressing current limitations in availability and costs of SAF.

Investment Details

The oneworld BEV Fund has closed its initial funding round at $150 million, supported by key players including Alaska Airlines and American Airlines, along with additional stakeholders like International Airlines Group (IAG), Cathay Pacific, and Japan Airlines. The aim is clear: to explore and develop next-generation SAFs that are not only cost-effective but also possess significantly lower emissions compared to traditional jet fuels.

Goals of the Fund

According to executives from oneworld, this fund is designed with multiple goals:

• - Invest in Next-Gen SAF Technologies: The fund will channel resources into innovative technologies that promise sustainable aviation fuel solutions.
• - Support Market Growth: The initiative aims to bolster alternative fuel markets, addressing the long-term needs of the aviation industry.
• - Create Economic Value: By fostering the development of sustainable fuels, the fund aspires to generate economic opportunities for investors and local economies globally.
• - Drive Innovation: A crucial aspect is encouraging technological advancements that can significantly improve the journey towards a sustainable aviation future.
• - Develop a Resilient Supply Chain: As demand for SAF grows, building a diverse and scalable supply chain is essential to meet future requirements.

Statements from Industry Leaders

The leadership of oneworld and its member airlines have expressed their strong belief in the potential of this fund. Robert Isom, CEO of American Airlines and chairman of oneworld, stated, "By investing in the SAF technologies of the future, our oneworld partners are making a business decision to accelerate developmental efforts that promise to scale at lower prices. This aligns with our commitment to sustainability and maintaining competitiveness."

Alaska Airlines CEO, Ben Minicucci, echoed these sentiments, excited about collaboration with oneworld carriers to push innovative and cost-competitive SAF technologies. He stressed the importance of working with BEV, which brings critical expertise in scientific and commercial investment decisions.

Nat Pieper, CEO of oneworld, emphasized the collaborative spirit behind the initiative. He said, "Our member airlines share a common mission to tackle carbon emissions and are dedicated to investing in technologies that speed up the market entry of innovative fuels worldwide. Together, we aim to secure long-term solutions for an industry vital to global economic growth."

Role of Breakthrough Energy Ventures

Breakthrough Energy Ventures will manage the fund, leveraging its extensive expertise in climate technology investments. Founded by Bill Gates, BEV is committed to advancing breakthroughs in sustainable energy and climate innovations. Eric Toone, BEV's chief technology officer, pointed out, "The oneworld BEV Fund is poised to identify and scale transformative SAF technologies that can genuinely lower emissions for jet fuel while being cost-competitive. This multifaceted approach acknowledges the complexities of the aviation ecosystem."

Collective Action for Sustainability

The fund is not only limited to oneworld airlines. In a bid for collective action, it has also welcomed non-alliance investors like Singapore Airlines, reinforcing the idea that collaboration is essential for accelerating industry-wide progress in sustainable aviation fuel adoption. Luis Gallego, CEO of IAG, noted, "Sustainable Aviation Fuel is the most viable pathway for our industry to achieve net zero emissions. This collaborative initiative highlights how airlines can unite to drive significant sustainability efforts."

Challenges Ahead

Despite the promising concept of SAF, there are notable challenges regarding production scaling and cost competitiveness. The existing first-generation SAF has encountered various issues, particularly in attracting the necessary investment levels to meet market demands while ensuring lifecycle sustainability. The oneworld alliance is committed to backing innovations that can mitigate these challenges and promote the availability of cost-efficient SAFs, while also addressing other environmental concerns.

Conclusion

With aircraft contributing approximately 2-3% of global carbon emissions, this fund represents a crucial step toward creating sustainable solutions in aviation. As the demand for air travel is expected to rise, the oneworld BEV Fund aims to set a precedent for the industry by developing alternative fuel technologies that can ultimately enhance environmental performance and solidify the economic advantages that air travel brings. The collaborative effort between the oneworld alliance and Breakthrough Energy Ventures signals a committed approach to securing a greener future for aviation.