Oneworld alliance launches $150 million fund for sustainable aviation fuel technology

Robert Isom, Chief Executive Officer of American Airlines and Chair of oneworld, said: "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 a 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."

The structure of the Breakthrough Energy Ventures fund is designed to support global development of cost-effective fuel alternatives that emit less carbon than traditional jet fuels. The partnership aims to combine scientific expertise with commercial experience to help bring new types of sustainable fuels into widespread use.

According to analysis by oneworld, aviation generates over $4 trillion in economic activity globally and supports more than 85 million jobs. However, it contributes about 2-3% of worldwide carbon dioxide emissions. As demand for air travel continues rising despite these environmental concerns, airlines are seeking ways to limit their impact by investing both in newer aircraft models and alternative fuels like SAF.

While using SAF can significantly reduce carbon dioxide emissions compared with conventional jet fuel, industry leaders note that more investment is needed for production at competitive prices. The new fund represents an effort by major airlines to accelerate progress toward these goals.