Airbus, along with partners including the Air France-KLM Group, Associated Energy Group, LLC, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital Inc., and Qantas Airways Limited, has announced a significant investment in a sustainable aviation fuel (SAF) financing fund.
This collaborative effort aims to accelerate the production and availability of SAF, with a total commitment of approximately US$200 million.
The fund, named the Sustainable Aviation Fuel Financing Alliance (SAFFA), was established in partnership with investment manager Burnham Sterling Asset Management, with Airbus serving as the Anchor Investor.
Each partner contributes financial expertise and industry experience, focusing on investing primarily in technologically mature SAF-producing projects that utilise waste-based feedstocks.
The investments will be diversified across various production pathways and regions to enhance the overall impact.
As part of their strategy, each partner will have the opportunity to enter into priority contracts to secure SAF offtakes from the projects funded by SAFFA, ensuring they meet their allocated volumes.
The fund specifically targets SAFs that qualify for RefuelEU Aviation or CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) certification, which aligns with global sustainability goals.
In a notable first step, SAFFA has made an investment in Crysalis Biosciences, a technology company focused on revitalising U.S. chemical manufacturing infrastructure through innovative fuel and chemical production technologies.
Crysalis has recently acquired and renovated the Monarch facility, an ethanol plant in Sauget, Illinois, which had been closed since 2019.
Following upgrades and the acquisition of necessary environmental authorisations, the plant is set to resume operations in early 2024, aiming to produce low-carbon intensity SAF and biochemicals.
This initiative reflects a growing commitment within the aviation industry to reduce carbon emissions and transition towards more sustainable fuel sources, marking a significant step forward in the pursuit of greener aviation practices.