Nigeria: Airbus, 6 global partners commit $200m to propel sustainable aviation fuel production
European aircraft manufacturing giant Airbus, alongside six other esteemed partners, has announced a substantial investment of $200 million.
The coalition, comprising the Air France-KLM Group, Associated Energy Group, LLC, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital Inc., and Qantas Airways Limited, aims to catalyze the production and use of SAF through a dedicated financing fund.
The seven corporate heavyweights have collaborated with investment manager Burnham Sterling Asset Management to establish the Sustainable Aviation Fuel Financing Alliance (SAFFA).
Airbus has taken the lead as the anchor investor in this pioneering fund. The alliance is set to play a crucial role in driving the availability of SAF by focusing investments on technologically mature, waste-based feedstock projects.
SAFFA’s investment strategy is designed to be both geographically and technologically diverse, ensuring a broad impact on SAF production pathways. Each partner in the alliance brings a wealth of experience and financial acumen, reinforcing the collective ambition to expedite SAF availability. Notably, the partners will have the opportunity to secure priority contracts for SAF offtakes from the projects funded by SAFFA, aligning with the requirements of RefuelEU Aviation and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) certification.
Marking its inaugural investment, SAFFA has committed funds to Crysalis Biosciences, a technology company at the forefront of revitalizing U.S. chemical manufacturing infrastructure. Crysalis Biosciences has recently acquired and is refurbishing the Monarch facility, an ethanol plant located in Sauget, Illinois, USA, which had been inactive since 2019. This investment underscores SAFFA’s commitment to supporting innovative fuel and chemical production technologies, which are essential for the sustainable future of aviation.
The concerted investment by Airbus and its partners reflects a unified vision to transform the aviation industry’s environmental footprint. By pooling resources and expertise, the coalition aims to significantly enhance the production and adoption of SAF. This initiative is expected to not only reduce carbon emissions but also set a precedent for future investments in sustainable aviation technologies.
The creation of SAFFA and its initial investment in Crysalis Biosciences sends a strong signal to the aviation industry about the viability and importance of SAF. As more projects receive funding and come online, the availability of sustainable fuels is anticipated to increase, driving down costs and making SAF a more accessible option for airlines globally.
The $200 million commitment by these industry leaders marks a significant step towards a greener aviation sector, paving the way for further innovations and investments in sustainable technologies. This bold move is poised to accelerate the transition to more sustainable aviation practices, heralding a new era of environmentally responsible air travel.
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