The oneworld Alliance, in partnership with Breakthrough Energy Ventures (BEV), has announced the launch of a new investment fund dedicated to advancing Sustainable Aviation Fuel (SAF) technologies. The fund, supported by major airlines including Alaska Airlines, American Airlines, International Airlines Group (IAG), Cathay Pacific, Japan Airlines, and Singapore Airlines, aims to address the critical challenges of limited supply and high costs that currently hinder widespread adoption of SAF.
Addressing the Industry’s Biggest Environmental Challenge
The aviation sector accounts for approximately 2-3% of global carbon dioxide emissions and is one of the most challenging industries to decarbonize due to its reliance on high-energy-density jet fuel. With air travel demand expected to grow significantly in the coming decades, the urgency to develop sustainable fuel alternatives has never been greater.
Sustainable Aviation Fuel presents a promising solution by offering the potential to reduce lifecycle emissions by up to 80% compared to traditional jet fuel. However, the current generation of SAF has been limited in availability, costly, and in some cases, associated with environmental concerns related to feedstock sourcing and production processes.
A Fund Designed for Scale and Impact
The newly launched oneworld BEV Fund focuses on investing in novel and next-generation SAF technologies that aim to overcome these challenges. Unlike existing fuels, these advanced solutions prioritise scalability, cost competitiveness, and reduced environmental impact across their full lifecycle.
American Airlines CEO and oneworld Chairman Robert Isom emphasized the importance of this strategic move:
“By investing in the SAF technologies of the future, American and our oneworld partners are making this business decision to unlock 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.”
Alaska Airlines CEO Ben Minicucci highlighted the partnership’s strength:
“Alaska Airlines is excited to work alongside oneworld carriers to invest in innovative and cost-competitive SAF technology to drive the long-term energy transformation for our industry. In Breakthrough Energy Ventures, we have a partner with the scientific, technical and commercial expertise to make effective investment decisions that will create the market for next-generation fuels and power our industry in the years ahead.”
Industry-Wide Collaboration for Long-Term Sustainability
The involvement of multiple global carriers, both within and outside the oneworld Alliance, reflects a growing consensus that collective action is essential to achieving net-zero emissions.
Nat Pieper, Chief Executive Officer (CEO) of oneworld, explained:
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. By working together, we’ll be better positioned to create long-term solutions for the energy transformation of an industry that is vital to global economic growth.”
Airlines across the globe are joining forces to push the sustainable fuel agenda forward. International Airlines Group (IAG) CEO Luis Gallego stressed the need for supportive policies alongside investment:
“Sustainable Aviation Fuel is the most viable pathway for the aviation industry to progress to reach net zero. With our oneworld partners we have actively supported collective efforts on sustainability and today’s announcement further highlights the potential of collaboration, demonstrating how leading airlines can come together with the goal to accelerate action. To unlock SAF’s full potential, we are calling for supportive policy frameworks that help attract investment and enable the infrastructure needed to kickstart production.”
Cathay Pacific CEO Ronald Lam pointed to the importance of regional leadership:
“As an airline with significant long-haul operations, scaling innovation to make SAF more accessible and cost-competitive is critical to Cathay Pacific’s future. This investment reflects our belief that only through collective action – across geographies and industries – can we build a resilient and scalable SAF ecosystem that delivers meaningful environmental progress and supports the future of our industry. And with Asia continuing to play a pivotal role in the global SAF ecosystem, we’re proud to help lead this momentum from the region.”
Japan Airlines President Mitsuko Tottori underlined the mission for island nations:
“Relationships and connections with countries and regions around the world through air transportation are necessary for an island nation like Japan, thus we believe we have a mission to tackle the environmental impact of air transportation. Working towards this common mission for oneworld, we look forward to promoting technology and the use of SAF together with the member airlines, anticipating expansion into the Asian region in the future.”
Singapore Airlines Chief Sustainability Officer Lee Wen Fen reflected on the broader impact:
“Our investment in this fund demonstrates Singapore Airlines’ strong support for developing and commercialising next generation Sustainable Aviation Fuels. Reducing the carbon emissions of jet fuel demands collective action across the entire aviation ecosystem, and such initiatives will drive innovation towards meaningful progress in this crucial energy transformation.”
Breakthrough Energy Ventures: Driving Climate Tech Innovation
Breakthrough Energy Ventures brings deep technical and commercial expertise to the fund, focusing on early-stage climate technologies with the highest potential for success.
Eric Toone, Chief Technology Officer at Breakthrough Energy and Managing Partner at BEV, highlighted the fund’s long-term vision:
“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 identify and scale breakthrough SAF technologies that can deliver real emissions reductions for jet fuel, compete with fossil-based fuels on cost, and integrate seamlessly with today’s aviation infrastructure. These are complex systems-level challenges that will take time to solve, and the fund is built with the long-term vision and staying power to help bring solutions to market.”
The Future of Aviation Depends on Sustainable Fuel
While airlines continue investing in efficient aircraft and operations, Sustainable Aviation Fuel remains a cornerstone in the drive to decarbonize aviation. With economic activity tied to aviation valued at $4.1 trillion globally and supporting over 86 million jobs, this fund not only addresses environmental concerns but also aims to secure the future economic vitality of the industry.
The oneworld BEV Fund represents a pivotal step toward accelerating SAF innovation, building a more resilient supply chain, and fostering a future where sustainable fuels are widely accessible and affordable.
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