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In a bold move to decarbonize the skies, global airline alliance oneworld and its member carriers have joined forces with Breakthrough Energy Ventures (BEV), the climate-focused investment firm founded by Bill Gates. Together, they have launched a $150 million fund aimed at scaling the next generation of sustainable aviation fuels (SAF).
Led by cornerstone investors Alaska Airlines and American Airlines, and joined by International Airlines Group (IAG), Cathay Pacific, Japan Airlines, and Singapore Airlines, the fund signals a major step toward transforming the aviation industry’s fuel supply chain. The initiative marks one of the most significant collective investments in SAF to date, addressing two critical industry challenges: limited availability and high production costs.
Climate Innovation Takes Flight
BEV will act as the fund’s investment manager, bringing its deep technical expertise, rigorous evaluation processes, and a track record of nurturing climate tech startups. The goal: to identify and scale SAF technologies that can deliver real emissions reductions, compete with fossil-based jet fuels on cost, and work seamlessly with today’s aviation infrastructure. “Sustainable Aviation Fuel is essential to addressing the sector’s environmental impact and represents a major commercial opportunity. The oneworld BEV Fund is built to scale breakthrough SAF technologies with staying power,” said Eric Toone, Chief Technology Officer at Breakthrough Energy and Managing Partner at BEV.
Why SAF Matters Now
Air travel currently accounts for about 2–3% of global CO₂ emissions, but demand for aviation is expected to rise in the coming decades. SAF—fuels made from renewable or waste sources—can reduce lifecycle emissions by up to 80% compared to conventional jet fuel. However, SAF still accounts for less than 0.1% of global aviation fuel use, and the sector has struggled to attract the scale of investment needed to grow. That’s where this fund steps in. The oneworld BEV Fund will prioritize innovations that are not only cleaner but also cost-effective and scalable, helping to build a diverse and resilient supply chain for aviation fuel in the decades to come.
Collective Action Across Alliances
What’s particularly notable is the cross-alliance collaboration. While oneworld member airlines lead the effort, Singapore Airlines, a Star Alliance member, has also invested in the fund—showcasing an industry-wide recognition of the need for climate action. “Reducing the carbon emissions of jet fuel demands collective action,” said Lee Wen Fen, Chief Sustainability Officer at Singapore Airlines. “This investment demonstrates our strong support for driving innovation in next-generation fuels.”
According to Robert Isom, CEO of American Airlines and Chairman of oneworld, the airline and oneworld partners are making a business decision to accelerate the development of novel technologies with the potential to reach larger scale at lower prices by investing in the SAF technologies of the future.
This strategic commitment comes at a time when the aviation industry faces mounting pressure to decarbonize amid rising passenger demand and tightening climate regulations. While first-generation SAF has shown promise, limited supply, high costs, and scalability issues have hindered widespread adoption. By channeling capital into cutting-edge fuel technologies, the oneworld BEV Fund aims to close this critical gap—unlocking a path toward cleaner skies and a more resilient aviation sector for decades to come.
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Source: traveldailymedia