In a bold move to decarbonize the skies, global airline alliance oneworld and its member carriers have partnered with Breakthrough Energy Ventures (BEV), a climate-focused investment firm established by Bill Gates. Together, they have launched a $150 million fund aimed at promoting the next generation of sustainable aviation fuels (SAF).

Key Contributors: Major investors include Alaska Airlines and American Airlines, along with International Airlines Group (IAG), Cathay Pacific, Japan Airlines, and Singapore Airlines. This fund marks a significant collective step towards overhauling the aviation industry’s fuel supply chain, addressing critical challenges such as limited availability and high production costs.

Climate Innovation Takes Flight

BEV will serve as the fund’s investment manager, leveraging its expertise to scale SAF technologies that promise real emissions reductions, competitiveness against fossil fuels, and compatibility with existing aviation infrastructure. “Sustainable Aviation Fuel is essential to addressing the sector’s environmental impact and represents a major commercial opportunity. The oneworld BEV Fund is built to scale breakthrough SAF technologies with staying power,” said Eric Toone.

Importance of SAF Now

Currently, air travel contributes to around 2-3% of global CO₂ emissions, with demand for flights expected to increase significantly in the coming years. SAF can reduce lifecycle emissions by up to 80% compared to traditional jet fuel, yet it constitutes less than 0.1% of global aviation fuel usage. The fund aims to prioritize cleaner, scalable innovations, aiming to create a robust and diverse aviation fuel supply chain for future generations.

Collaborative Efforts Across Alliances

What’s particularly noteworthy is the cooperation between alliances. While oneworld has led the initiative, Singapore Airlines, belonging to the Star Alliance, has also invested, underscoring the industry’s unified call for climate action. “Reducing the carbon emissions of jet fuel demands collective action,” noted Lee Wen Fen.

Robert Isom, CEO of American Airlines and Chairman of oneworld, emphasized that investing in the future of SAF technologies is a business decision to hasten the development of innovative technologies that can achieve wider adoption at reduced costs.

In conclusion, as the aviation industry faces increasing pressure to diminish its carbon footprint amid growing passenger demand and stricter climate regulations, the oneworld BEV Fund aims to bridge gaps in SAF supply, promoting a cleaner and more resilient aviation sector for decades to come.