The Breakthrough Energy Ventures-managed fund will target novel fuel technologies.
A group of large airlines have backed a new sustainable aviation fuel (SAF) fund managed by venture capital firm Breakthrough Energy Ventures.
The $150m Oneworld BEV Fund, which is anchored by American Airlines and Alaska Airlines, and backed by other members of the Oneworld Alliance aviation partnership network, will invest in next-generation SAF technologies and support the growth of alternative fuel markets.
Other investors in the fund include International Airlines Group, Cathay Pacific, Japan Airlines and Singapore Airlines.
“Investing in SAF with Breakthrough Energy Ventures is part of Oneworld’s strategy to create a future of aviation that solves problems at scale and serves the needs of the greater aviation community,” said Nat Pieper, CEO of Oneworld Alliance, in a release.
Aviation is one of the hardest sectors in which to reduce greenhouse gas emissions because of the lack of low-carbon jet fuel to meet demand.
It’s not the first time that airlines have come together to invest in sustainable aviation fuels. United Airlines Ventures spearheaded the launch of a $100m SAF fund – the United Airlines Ventures Sustainable Flight Fund – in early 2023 alongside other airline LPs including Air Canada, Boeing and GE Aerospace.
By July 2023 the fund had doubled in size, with more LPs joining including Hawaiian Airlines, JetBlue, and Groupe ADP. More corporates joined in early 2024 including Air New Zealand, Embraer, Aircastle and Safran.
Fernando Moncada Rivera
Fernando Moncada Rivera is a reporter at Global Corporate Venturing and also host of the CVC Unplugged podcast.
