More than $100 million investment fund have been launched by United Airlines as it aims to support start-ups focused on the research and production of sustainable aviation fuel (SAF) and have been backed by partners such as Air Canada, Boeing, General Electric, JPMorgan Chase, and Honeywell who have all invested in the fund that would be called the United Airlines Ventures Sustainable Flight Fund.
The Chicago-based airliners said the fund, which would be made open to investment by companies across industries, would prioritize investment in new technology and “proven” producers as the global aviation industry is under pressure to reduce carbon emissions and is seeking ways to meet the 2050 net-zero emissions target set by the International Air Transport Association (IATA) in 2021.
The industry which currently contributes about 2% of global carbon dioxide emissions, now faces formidable challenges in reaching that goal as technologies such as electric and hydrogen-powered aircraft are still unproven.
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However, global airlines and aerospace manufacturers are betting on SAF to speed up its reaching the 2050, as it is made in tiny quantities from feedstocks such as cooking oils and animal waste, but can cost two to five times more than conventional jet fuels.
United Airline’s Chief Sustainability Officer, Lauren Riley said the investment fund was aimed at scaling up the supply of SAF and it would contribute up to 49% of the fund’s value.
The carrier was also encouraging travelers to contribute to the fund by offering first 10,000 customers 500 miles each for their contribution in a move that Riley said move was aimed at educating customers rather than generating funds from them.
United has pledged to reduce its carbon intensity by 50% by 2035 versus 2019.
Although it has purchased nearly 8 million gallons of SAF since 2016, the total volume of SAF used in its operations remained less than 0.1% of its total aviation fuel usage as of last December.
Story was adapted from Reuters.
