United Airlines Ventures has made its first investment from its recently announced UAV Sustainable Flight FundSM in algae biofuel company, Viridos. The US$5 million investment aims to produce sustainable aviation fuel (SAF) from microalgae, an abundant and scalable resource that can be grown without affecting the food supply chain. Viridos specializes in bioengineering microalgae, with its proprietary technology that accelerates the amount of oil that can be produced. This algae oil could then be used to scale future SAF production, which is an alternative to conventional jet fuel that reduces greenhouse gas emissions associated with air travel. United has already invested in the future production of over three billion gallons of SAF.
Viridos’ bioengineering technology combines several important and unique attributes contributing to better scalability and sustainability compared with traditional jet fuel production. For instance, Viridos algae are grown in seawater, which allows deployment in hot and dry locations without taxing scarce freshwater and arable land resources, while also eliminating runoff. The algae have extremely high oil contents facilitating downstream processing of algae oil. The SAF created by Viridos’ algae oil is expected to have a 70% reduced carbon footprint on a lifecycle basis when compared to traditional jet fuel. The investment in Viridos marks United’s commitment to reaching net-zero carbon emissions by 2050 without relying on traditional carbon offsets while investing in sustainable aviation fuel production.
“By establishing production sites to grow Viridos-engineered microalgae in salt water, we are creating the foundation for a biofuel future that moves away from fossil fuels without competing for precious resources such as fresh water and arable land. We are excited to have the support from United Airlines. Together we can build the ecosystem needed to bring algae biofuels to the market,” according to Oliver Fetzer, Viridos Chief Executive Officer.
The UAV Sustainable Flight Fund is a first-of-its-kind investment vehicle that is designed to leverage support from cross-industry businesses in order to support start-ups focused on decarbonizing air travel through SAF research, technology, and production. The fund is starting with more than $100 million in investments from United and inaugural corporate partners Air Canada, Boeing, GE Aerospace, JPMorgan Chase, and Honeywell. To date, nearly 6,000 United customers have contributed to supplement United’s investment in the fund while purchasing tickets.
United aims to be 100% green by reducing its GHG emissions 100% by 2050, without relying on traditional carbon offsets. In addition to the UAV Sustainable Flight Fund, United has launched a SAF purchasing program called the Eco-Skies Alliance and established a venture fund – United Airlines Ventures – to identify and invest in companies and technologies that can decarbonize air travel. These strategic investments include carbon capture, hydrogen-electric engines, electric regional aircraft, and air taxis.