A consortium of industry leaders, including Airbus, Air France-KLM Group, Associated Energy Group, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital Inc., and Qantas Airways Limited, has announced a significant investment in the future of sustainable aviation. The group has co-invested approximately US$200 million to establish the Sustainable Aviation Fuel Financing Alliance (SAFFA) investment fund, aimed at boosting the production of Sustainable Aviation Fuel (SAF).
Airbus is taking a leading role as the Anchor Investor in the fund, which will be managed by investment firm Burnham Sterling Asset Management. The collaboration brings together a wealth of expertise and financial resources to address the aviation industry’s pressing challenge of reducing carbon emissions.
SAFFA will primarily focus on investing in technologically mature SAF production projects that utilize waste-based feedstocks. By diversifying investments across various SAF production pathways and regions, the fund aims to accelerate the availability of this cleaner fuel alternative.
Each partner has the opportunity to secure priority contracts for SAF offtakes from the projects SAFFA invests in, aligning their sustainability goals with the fund’s objectives. The alliance is targeting SAF which meets the stringent certification requirements of RefuelEU Aviation and CORSIA.
To demonstrate its commitment to the initiative, SAFFA has made its first investment in Crysalis Biosciences, a technology company dedicated to revitalizing the U.S. chemical manufacturing sector with innovative fuel and chemical production technologies. Crysalis Biosciences has successfully acquired and upgraded a previously idle ethanol plant in Illinois, positioning it to produce low carbon intensity SAF and biochemicals.
This strategic partnership marks a significant step forward in the aviation industry’s transition to a more sustainable future. By investing in SAF production, these companies are demonstrating their commitment to reducing greenhouse gas emissions and mitigating the environmental impact of air travel.