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Global airline alliance oneworld, together with a consortium of airlines, has announced the creation of the oneworld BEV Fund, a new venture focused on sustainable aviation fuel (SAF). This initiative aims to enhance the accessibility and affordability of jet fuels that significantly mitigate aviation’s greenhouse gas emissions.
The fund is being established in collaboration with Breakthrough Energy Ventures (BEV), a climate tech venture capital fund founded by Bill Gates, which will manage the fund’s investments. It launches with an initial commitment of $150 million, with Alaska Airlines and American Airlines as key investors. Other airlines supporting the fund include oneworld members IAG, Cathay Pacific, and Japan Airlines, along with Singapore Airlines, which is not part of oneworld.
American Airlines CEO and oneworld Chairman Robert Isom stated, “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.”
Fuel represents the predominant source of emissions in the aviation sector. Sustainable aviation fuel, typically produced from renewable resources such as waste oils and agricultural residues, is identified as a crucial element in decarbonising the aviation industry in the short to medium term. SAF producers suggest these fuels can cut lifecycle greenhouse gas emissions by up to 85% compared to traditional fuels.
According to a [recent report](https://www.esgtoday.com/global-sustainable-aviation-fuel-production-to-double-in-2025-iata-says/) by the International Air Transport Association (IATA), while SAF production is expected to double by 2025, it will still constitute merely 0.7% of total fuel consumption by airlines. Efforts to significantly boost SAF production face obstacles, including high initial costs and feedstock challenges.
In its announcement, oneworld emphasised the challenges confronting the initial generation of SAF, such as insufficient investment to scale production competitively according to market demands and concerns about lifecycle environmental impacts. The partners in the new fund intend to support emerging technologies that can expand the availability of cost-effective SAF while minimising other environmental impacts.
Eric Toone, Chief Technology Officer at Breakthrough Energy and Managing Partner at Breakthrough Energy Ventures, commented, “The oneworld BEV Fund is built to identify and scale breakthrough SAF technologies that can deliver real emissions reductions for jet fuel, compete with fossil-based fuels on cost, and integrate seamlessly with today’s aviation infrastructure. These are complex systems-level challenges that will take time to solve, and the fund is built with the long-term vision and staying power to help bring solutions to market.”
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