Oneworld Alliance and its member airlines, in partnership with Breakthrough Energy Ventures (BEV), have launched a new investment fund to address the high cost and limited supply of sustainable aviation fuels (SAF).

Cornerstone investors Alaska Airlines and American Airlines will lead the fund, which aims to accelerate the development of scalable, lower-emission aviation fuels.

The oneworld BEV Fund will invest in next-generation SAF technologies, support alternative fuel markets, develop a resilient supply chain, drive technology innovation, and create economic value for investors and regions. BEV, founded by Bill Gates, will manage the fund, providing technical expertise and experience supporting early-stage climate technology companies. The initiative is also supported by oneworld members International Airlines Group (IAG), Cathay Pacific, Japan Airlines, and non-alliance investor Singapore Airlines.

The aviation industry, which contributes around US$4.1 trillion to the global economy and supports 86.5 million jobs, accounts for two to three per cent of global carbon dioxide emissions. SAF can reduce lifecycle emissions of jet fuel by up to 80 per cent, but production has yet to scale to meet demand at competitive prices. oneworld and its partners aim to support technologies that expand supply while limiting other environmental impacts.

Eric Toone, chief technology officer at Breakthrough Energy and managing partner at BEV, shared that SAF is crucial for reducing aviation emissions and that the oneworld BEV Fund aims to scale technologies that lower costs, cut emissions, and work with existing infrastructure.

Leaders from IAG, Cathay Pacific, Japan Airlines, and Singapore Airlines highlighted that advancing SAF requires collaboration across the industry, investment in technology, and supportive policies to build a scalable and cost-effective SAF infrastructure that reduces carbon emissions.

Robert Isom, CEO of American Airlines and chairman of oneworld, said: “By investing in the SAF technologies of the future, American and our oneworld partners are making a business decision to accelerate the development of novel technologies with the potential to reach 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.”

Nat Pieper, CEO of oneworld, added: “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. Our member airlines are united in their long-term mission to address carbon emissions and invest in technologies that can improve speed to market of innovative fuels across the globe.”