Sustainable Aviation
Major Airlines Launch 150 Million Fund to Advance Sustainable Aviation Fuel
The oneworld BEV Fund invests $150 million to accelerate sustainable aviation fuel technology and support aviation’s net-zero goals by 2050.
The aviation industry has reached a pivotal moment in its decarbonization journey with the announcement of a groundbreaking $150 million investment fund aimed at advancing sustainable aviation fuel (SAF) technologies. The oneworld alliance, in partnership with Breakthrough Energy Ventures (BEV), has launched the oneworld BEV Fund to address the critical challenges of limited availability and high costs that have hindered widespread adoption of SAF. This initiative represents one of the largest coordinated investments by major airlines in next-generation fuel technologies, signaling a significant shift toward collaborative approaches in tackling aviation’s environmental impact.
The fund brings together cornerstone investors Alaska Airlines and American Airlines, along with International Airlines Group, Cathay Pacific, Japan Airlines, and Singapore Airlines, demonstrating unprecedented industry unity in pursuing sustainable solutions. With aviation currently accounting for approximately 2-3% of global carbon dioxide emissions and facing rapid growth projections, this investment fund emerges as a crucial mechanism for scaling breakthrough technologies that could transform the sector’s environmental footprint while maintaining the economic viability essential for continued global connectivity.
The aviation industry faces one of the most challenging decarbonization tasks among all transportation sectors, with emissions continuing to rise as global air travel demand recovers and expands beyond pre-pandemic levels. Commercial aviation concluded its post-COVID recovery in 2024, with passenger traffic reaching approximately 4% above 2019 levels and freight traffic 7% higher than the baseline year. This recovery has brought both opportunities and environmental challenges, as the annual data reveals that 2024 gross emissions were 1% higher than in the CORSIA baseline year of 2019.
The scale of the challenge becomes evident when examining global aviation emissions data, which shows monthly carbon dioxide emissions from domestic and international commercial passenger flights reaching 68.56 million metric tons in December 2024. International flights accounted for over 60% of this total, highlighting the global nature of aviation’s carbon footprint. These emissions have been on an upward trend since April 2020, reflecting the industry’s recovery from the COVID-19 pandemic, and commercial passenger flight emissions have now returned to pre-pandemic levels.
Looking ahead, the aviation sector is projected to face even greater environmental challenges as demand continues to grow. Current projections estimate that demand for air passenger journeys in 2050 could exceed 10 billion, with expected 2021-2050 carbon emissions on a ‘business as usual’ trajectory reaching approximately 21.2 gigatons of CO2. This trajectory presents a stark contrast to the industry’s commitment to achieve net-zero carbon emissions by 2050, a goal that was adopted by the International Civil Aviation Organization (ICAO) in 2022 and by the International Air Transport Association (IATA) member airlines in 2021.
“While aviation accounts for 2-3% of global CO2 emissions today, its share could rise to 6-9% by 2050 if decarbonization does not keep pace with sector growth.”
The announcement of the oneworld BEV Fund on September 17, 2025, represents a significant milestone in aviation industry collaboration toward sustainable fuel development. The fund, with an initial close of $150 million, brings together some of the world’s largest airlines under a unified investment strategy managed by Breakthrough Energy Ventures, the climate technology investment fund founded by Bill Gates. This partnership structure leverages the complementary strengths of airline industry expertise and venture capital experience in climate technology development.
The fund’s cornerstone investors, Alaska Airlines and American Airlines, provide substantial backing and strategic direction for the initiative. American Airlines CEO Robert Isom, who also serves as chairman of oneworld, emphasized the business rationale behind the investment: “By investing in the SAF technologies of the future, American and our oneworld partners are making a business decision to accelerate the development of novel technologies with the potential to reach larger scale at lower prices than current technologies can achieve.”
Singapore Airlines, despite not being a oneworld alliance member, joined the initiative as part of the initial fund close, reflecting the recognition that sustainable aviation fuel development benefits from the broadest possible industry participation. This inclusive approach signals a shift from competitive dynamics to collaborative problem-solving in addressing shared environmental challenges. “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.” — Eric Toone, CTO at Breakthrough Energy Ventures
The global SAF market was estimated at $1.43 billion in 2024 and is projected to reach approximately $134.57 billion by 2034, with a compound annual growth rate of 57.53%. The United States leads the regional market, valued at $450.41 million in 2024 and expected to reach $43.16 billion by 2034. North America‘s dominance is attributed to increased air traffic and supportive government initiatives, while the Asia-Pacific region is predicted to grow at over 60% annually during the forecast period.
Despite these growth projections, current SAF production remains limited. Global consumption is expected to reach about 500 million gallons in 2024, with the U.S. recording 24.5 million gallons consumed in 2023. Production capacity constraints, with only two U.S. plants producing SAF at the start of 2024, highlight the need for substantial infrastructure investment. Announced projects like Phillips 66’s Rodeo Renewed and Diamond Green Diesel’s Port Arthur SAF project could increase U.S. capacity to nearly 30,000 barrels per day if completed as planned.
The International Air Transport Association reported that global SAF production reached 1 million metric tons in 2024, nearly double 2023 levels but short of earlier projections. For 2025, production is expected to rise to 2.1 million metric tons, still covering less than 1% of global jet fuel supply.
The economic viability of SAF remains a significant barrier. In 2025, SAF is forecast to cost 4.2 times more than conventional jet fuel, up from 3.1 times in 2024. Compliance fees imposed by European suppliers, intended to hedge regulatory risks under the EU’s SAF mandate, have exacerbated the price gap, resulting in an estimated $1.6 billion in additional SAF expenses in 2024.
SAF prices range between $3.11 and $6.14 per gallon, compared to conventional jet fuel at about $86 per barrel. With airlines operating on average net profit margins of just 3.6%, these cost disparities make SAF integration a long-term strategic consideration rather than a near-term operational shift.
Nevertheless, some analyses suggest that as production scales and technology advances, SAF will not be substantially more expensive than conventional jet fuel in the long term, supporting the sector’s net-zero emissions target by 2050. The initial high costs are expected to decrease, making SAF more accessible to airlines and passengers over time.
“The cost of achieving net-zero carbon emissions by 2050 is already estimated at a staggering $4.7 trillion. Fuel suppliers must stop profiteering on the limited SAF supplies available and ramp up production to meet the legitimate needs of their customers.” — Willie Walsh, IATA Director General
Regulatory requirements and policy incentives are increasingly shaping SAF adoption. The European Union’s ReFuelEU Aviation regulation mandates SAF use at 155 major Union airports starting in 2025, with quotas rising to 35% for synthetic fuels by 2050. This regulation uses a penalty system to ensure compliance, making fulfilling SAF mandates economically preferable to non-compliance.
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is another significant framework. Airlines must surrender credits or purchase CORSIA-eligible fuels to offset emissions above a set baseline. The cost of complying with CORSIA is expected to reach $1 billion in 2025, increasing the attractiveness of SAF as a compliance mechanism. In the United States, the Renewable Fuel Standard (RFS), federal tax credits, and state programs provide policy support. The White House aims to meet 100% of U.S. aviation fuel demand with SAF by 2050, with intermediate targets of 3 billion gallons by 2030 and 35 billion gallons by 2050. These policies create both demand certainty and financial incentives for SAF investment and production.
The oneworld BEV Fund is part of a broader trend toward industry collaboration. United Airlines Ventures launched a $100 million SAF fund in 2023, joined by partners such as Air Canada, Boeing, and GE Aerospace. The oneworld alliance itself aspires to use SAF for 10% of its combined fuel volumes by 2030, supporting its collective net zero goal by 2050.
Breakthrough Energy Ventures, founded by Bill Gates, has invested in companies like LanzaJet to support commercial-scale SAF production. The International Air Transport Association coordinates industry sustainability efforts through its Fly Net Zero commitment and detailed roadmaps for achieving net-zero CO2 emissions by 2050, with SAF expected to provide about 65% of the mitigation needed.
These collaborative efforts, which include partnerships with technology firms and energy companies, are crucial for developing the diverse technology pathways and supply chains needed for SAF to achieve meaningful market penetration.
SAF production relies on multiple technology pathways, including hydro-processed esters and fatty acids (HEFA), Fischer-Tropsch synthesis, and alcohol-to-jet processes. Biofuels currently account for over 71% of the SAF market, with HEFA-based fuels offering 50-65% emission reductions compared to traditional jet fuel.
Emerging pathways, such as power-to-liquid synthetic fuels made from hydrogen and captured CO2, offer the potential for even deeper decarbonization. The EU’s ReFuelEU regulation specifically mandates synthetic fuel use, recognizing their potential for truly carbon-neutral aviation.
Scaling these technologies will require significant investment, with over 140 renewable fuel projects announced for production by 2030. However, not all projects will reach final investment decisions, underscoring the need for continued financial and policy support.
The launch of the oneworld BEV Fund marks a pivotal moment in aviation’s journey toward sustainable fuel adoption. With $150 million in initial funding and management by Breakthrough Energy Ventures, the fund combines airline industry expertise with climate technology investment to accelerate next-generation SAF development. This collaborative approach, involving both alliance and non-alliance members, reflects broad industry recognition that overcoming the scale and cost challenges of SAF requires collective action. Despite explosive market growth projections, current SAF production and adoption remain limited by high costs, supply shortages, and infrastructure constraints. Regulatory frameworks like ReFuelEU and CORSIA are creating strong compliance incentives, while voluntary industry commitments and collaborative investment models are driving innovation. The success of the oneworld BEV Fund and similar initiatives will be critical in achieving aviation’s net-zero emissions goals by 2050 while maintaining global connectivity.
What is the oneworld BEV Fund? Which airlines are participating in the fund? Why is sustainable aviation fuel important? What are the main barriers to SAF adoption? What role do regulations play in SAF development? Sources: oneworld Press Release
Major Airlines Launch $150 Million Fund to Accelerate Sustainable Aviation Fuel Development
The Urgent Need for Aviation Decarbonization
The oneworld BEV Fund: A Collaborative Investment Approach
Market Dynamics and Growth Projections
Cost Challenges and Economic Barriers
Regulatory Framework and Policy Drivers
Industry Initiatives and Collaborative Efforts
Technology Development and Production Pathways
Conclusion
FAQ
The oneworld BEV Fund is a $150 million investment fund launched by the oneworld airline alliance and Breakthrough Energy Ventures to advance and commercialize next-generation sustainable aviation fuel technologies.
Cornerstone investors include Alaska Airlines and American Airlines, with International Airlines Group, Cathay Pacific, Japan Airlines, and Singapore Airlines also participating.
SAF is critical for reducing aviation’s carbon emissions, which currently account for 2-3% of global CO2 emissions and are expected to rise as air travel demand grows.
The primary barriers are high costs (SAF is 4.2 times more expensive than conventional jet fuel in 2025), limited production capacity, and supply chain constraints.
Regulations like the EU’s ReFuelEU Aviation and the global CORSIA scheme create mandatory SAF usage and carbon offset requirements, incentivizing investment and scaling of SAF technologies.
Photo Credit: oneworld
Sustainable Aviation
Hawaiian and Alaska Airlines Partner for Hawaii SAF Production by 2026
Hawaiian and Alaska Airlines join Par Hawaii and Pono Energy to produce Sustainable Aviation Fuel locally with a $90M refinery upgrade, targeting 2026 deliveries.
This article is based on an official press release from Alaska Airlines and Hawaiian Airlines.
In a significant move toward energy independence and decarbonization, Hawaiian Airlines and Alaska Airlines have announced a strategic partnership with Par Hawaii and Pono Energy to establish the first local supply chain for Sustainable Aviation Fuel (SAF) in Hawaii. According to the joint announcement, the consortium aims to begin deliveries of locally produced SAF by early 2026.
The collaboration brings together the state’s largest energy provider, its primary air carriers, and local agricultural innovators. The project centers on upgrading Par Hawaii’s Kapolei refinery to process renewable feedstocks, specifically Camelina sativa, a cover crop that will be grown on fallow agricultural land across the islands. This “farm-to-flight” ecosystem is designed to reduce the aviation industry’s carbon footprint while diversifying Hawaii’s economy.
The airlines have committed to purchasing the SAF produced, providing the guaranteed demand necessary to make the project commercially viable. This agreement aligns with both carriers’ long-term goals of achieving net-zero carbon emissions by 2040.
Par Hawaii is spearheading the infrastructure development required to make local SAF a reality. According to project details summarized in the announcement and related reports, the company is investing approximately $90 million to upgrade its Kapolei refinery. This facility, the only refinery in the state, will convert a distillate hydrotreater to produce renewable fuels.
The upgraded unit will utilize HEFA (Hydroprocessed Esters and Fatty Acids) technology, a mature method for producing bio-jet fuel. Once operational, the facility is expected to have a significant output capacity.
In a joint statement, the partners emphasized the dual benefits of the initiative:
“This initiative will enable SAF production for more sustainable future flying and deliver economic benefits through the creation of a new energy sector and fuel supply chain in Hawai‘i.”
, Joint Press Statement, Alaska Airlines & Hawaiian Airlines
A critical component of this partnership is the sourcing of sustainable feedstock. Pono Energy, a subsidiary of Pono Pacific, will lead the agricultural operations. The project relies on Camelina sativa, a fast-growing, drought-tolerant oilseed crop that matures in 60 to 75 days. According to Pono Pacific, Camelina is ideal for Hawaii because it can be grown as a cover crop between other food crop rotations. This ensures that fuel production does not displace local food production. The crop helps prevent soil erosion, requires minimal water, and produces a high-protein “seedcake” byproduct that can be used as FDA-approved animal feed for local ranchers.
Chris Bennett, VP of Sustainable Energy Solutions at Pono Pacific, highlighted the circular nature of the project:
“Camelina represents a rare opportunity for Hawai‘i to build a true circular-economy model around renewable fuels.”
, Chris Bennett, Pono Pacific
The project is projected to support approximately 300 high-value manufacturing jobs at the refinery, in addition to creating new agricultural jobs for farming and harvesting. By producing fuel locally, the partnership aims to reduce Hawaii’s extreme dependence on imported fossil fuels, enhancing the state’s energy security.
The Cost and Scale Challenge
While this partnership marks a pivotal step for Hawaii, significant hurdles remain regarding cost and scale. SAF is currently estimated to be two to three times more expensive than conventional jet fuel. Without substantial subsidies or “green premiums” paid by corporate customers or passengers, this price differential poses a challenge for airlines operating in a price-sensitive leisure market like Hawaii.
Furthermore, while the projected 61 million gallons of renewable fuel is a substantial figure, it represents only a fraction of the total jet fuel consumed by commercial aviation in Hawaii. To run the refinery at full capacity, the facility will likely need to supplement local Camelina oil with imported waste oils, such as used cooking oil, until local agricultural production scales up. The success of this initiative will likely depend on the continued support of federal incentives, such as the Inflation Reduction Act, and state-level renewable fuel tax credits.
When will the new SAF be available? What is SAF? Will this project affect local food supply? Who is funding the refinery upgrade?
Hawaii Aviation Leaders Unite for Local SAF Production
Investment and Infrastructure Upgrades
The Role of Pono Energy and Camelina Sativa
Sustainable Agriculture
Economic Impact
AirPro News Analysis
Frequently Asked Questions
The partners expect the first deliveries of locally produced SAF to begin in early 2026.
Sustainable Aviation Fuel (SAF) is a liquid fuel currently used in commercial aviation which reduces CO2 emissions by up to 80%. It is produced from renewable feedstocks rather than crude oil.
No. The feedstock, Camelina sativa, is grown as a cover crop on fallow land or between food crop rotations, meaning it does not compete with food production.
Par Hawaii is leading the capital investment, estimated at $90 million, to upgrade the Kapolei refinery.
Sources
Photo Credit: Alaska Airlines
Sustainable Aviation
KLM Supports National SAF Fund to Strengthen Dutch Economy
KLM endorses the Wennink report urging a national Sustainable Aviation Fuel fund and €151-187B investment by 2035 to support Dutch economic growth.
On December 12, 2025, KLM Royal Dutch Airlines officially endorsed the findings of the newly released advisory report, “The Route to Future Prosperity” (De weg naar toekomstige welvaart). Authored by former ASML CEO Peter Wennink, the report outlines a strategic roadmap for the Dutch economy, emphasizing the need for significant investment to maintain national competitiveness.
Central to KLM’s endorsement is the report’s recommendation for the Dutch government to establish a national SAF fund. The airline argues that such a financial mechanism is critical to bridging the price gap between fossil kerosene and renewable alternatives, thereby accelerating the aviation sector’s transition to Sustainability without compromising the Netherlands’ economic standing.
Commissioned to analyze the Dutch Investments climate, the Wennink report warns that the Netherlands risks economic stagnation if it does not increase its annual growth rate to between 1.5% and 2%. According to the findings, maintaining current social standards, including healthcare, defense, and the energy transition, requires a massive capital injection.
The report estimates that an additional €151 billion to €187 billion in investment is needed by 2035 to modernize the economy. It identifies specific high-productivity sectors as essential pillars for future prosperity, including Artificial Intelligence, biotechnology, and aviation.
KLM has aligned itself with these findings, noting that a thriving business climate relies heavily on international connectivity. In its statement, the airline emphasized that the connectivity provided by Schiphol Airport is vital for Dutch trade and for attracting international headquarters to the region.
A key pillar of the aviation Strategy proposed in the report is the creation of a government-backed fund dedicated to Sustainable Aviation Fuel. Currently, SAF is significantly more expensive than traditional fossil kerosene, often three to four times the price, and suffers from limited supply availability.
KLM posits that a national fund would act as a catalyst to solve these market inefficiencies. By subsidizing the cost difference, the fund would make SAF more affordable for Airlines, ensuring they remain competitive against non-EU carriers that may not face similar sustainability mandates. Furthermore, the fund is intended to de-risk long-term investments for energy companies, encouraging the construction of domestic refineries, such as the facilities planned in Delfzijl.
“Such a fund would enable the Netherlands to accelerate the production of alternative aviation fuels and make them more affordable, thereby accelerating the sector’s sustainability.”
— KLM Royal Dutch Airlines
KLM used the release of the Wennink report to argue against unilateral national taxes or flight restrictions, which have been subjects of recent political debate in the Netherlands. The airline warns that such measures could harm the Dutch economy by reducing connectivity and driving business elsewhere.
Instead, KLM advocates for incentivizing sustainability. The airline suggests that the government must take a more active role in the energy transition rather than relying solely on industry mandates. According to the press release, “Real progress can only be achieved if government and industry work together and if the government takes a more active role.”
The endorsement of the Wennink report represents a strategic pivot for KLM, moving the conversation from “flight shaming” to economic necessity. By aligning its sustainability goals with the broader “Draghi-style” warnings about European competitiveness, KLM is positioning aviation not just as a transport sector, but as a geopolitical asset essential for the Netherlands’ survival as a trading nation.
However, this call for government funding comes amidst a complex backdrop. In 2024, KLM faced legal scrutiny regarding “greenwashing” allegations, with courts ruling that some “Fly Responsibly” advertisements painted an overly optimistic picture of SAF’s immediate impact. The push for a national fund can be interpreted as a tacit admission that the industry cannot achieve its 2030 and 2050 climate targets through market forces alone; without state intervention to lower the cost of SAF, the “green” transition remains economically unfeasible for legacy carriers.
KLM Backs Wennink Report, Calls for National SAF Fund to Secure Dutch Economic Future
The Wennink Report: A Call for Investment
The Proposal for a National SAF Fund
Strategic Competitiveness vs. Taxation
AirPro News Analysis
Frequently Asked Questions
Sources
Photo Credit: KLM
Sustainable Aviation
Airbus and SAF Hélicoptères Launch Book and Claim Model for HEMS SAF
Airbus and SAF Hélicoptères partner to use Book and Claim for Sustainable Aviation Fuel credits in Catalonia’s remote emergency medical services.
On December 10, 2025, Airbus Helicopters and the French operator SAF Hélicoptères announced a strategic partnership designed to decarbonize emergency medical services (HEMS) in Catalonia, Spain. The initiative utilizes a “Book and Claim” mechanism to supply Sustainable Aviation Fuel (SAF) credits to operations that physically cannot access the fuel, marking a significant shift in how remote aviation sectors approach environmental compliance.
The project focuses on two Airbus H145 helicopters operated by SAF Hélicoptères for the Catalan Department of Health’s Emergency Medical Services. According to the announcement, this arrangement allows the operator to reduce its carbon footprint despite the logistical impossibility of delivering physical biofuels to small, decentralized hospital helipads.
Emergency medical missions present a unique challenge for decarbonization. Unlike commercial airlines that refuel at major hubs with established infrastructure, HEMS helicopters often operate from remote bases or hospital rooftops. Transporting small quantities of SAF to these scattered locations by truck would be inefficient and could generate more carbon emissions than the biofuel saves.
To solve this, Airbus and SAF Hélicoptères have adopted the “Book and Claim” model. Under this system, the operator purchases SAF “certificates” representing the environmental benefits of the fuel. The physical fuel is then pumped into the aviation system at a central location, such as a major airport, where it is consumed by other aircraft. SAF Hélicoptères then claims the carbon reduction for its specific HEMS missions in Catalonia.
Jean-Louis Camus, Co-director of SAF Hélicoptères, explained the contractual necessity of this arrangement in the company’s statement:
“In my contract, I state that I will pay the equivalent of a portion of my helicopters’ fuel usage in exchange for a certificate.”
Airbus Helicopters is acting as the market facilitator in this pilot program. According to the release, the manufacturer purchases SAF certificates in bulk from producers and resells them to smaller operators. This approach is intended to “de-risk” the process for customers who may lack the purchasing power to negotiate large fuel contracts independently.
Julien Manhes, Head of Sustainable Aviation Fuel at Airbus, highlighted the company’s objective to democratize access to green fuels:
“For a lot of smaller operators, getting access to SAF can be challenging… Airbus can simplify and derisk the process.”
To ensure transparency and prevent “double counting”, where two different parties might claim the same environmental benefit, the initiative utilizes a registry managed by the Roundtable on Sustainable Biomaterials (RSB). This certification ensures that once the carbon reduction is claimed by the HEMS operator, it cannot be claimed by the entity physically burning the fuel at the central hub. While the “Book and Claim” model solves the immediate logistical hurdles for HEMS operators, it faces a complex regulatory landscape. As of late 2025, major frameworks like the EU Renewable Energy Directive (RED) and the ReFuelEU initiative prioritize the physical supply of fuel at mandated airports. Consequently, “Book and Claim” systems are not yet fully recognized for meeting all national compliance targets, creating a temporary regulatory gap.
Furthermore, while this system reduces Scope 3 emissions for clients like the Catalan Department of Health, the cost of SAF remains significantly higher, often 2 to 8 times that of conventional jet fuel. The willingness of public health administrations to absorb these costs signals a shift in public tenders, where environmental compliance is becoming a non-negotiable requirement for government contracts.
The deployment in Catalonia serves as a proof-of-concept for the wider industry. Juan Carlos Gomez Herrera, representing the Catalan Administration, noted that the initiative aligns with their broader public health mandate, viewing environmental responsibility as an extension of immediate medical care.
By decoupling the physical fuel from its environmental attributes, Airbus and SAF Hélicoptères are demonstrating a viable pathway for decarbonizing decentralized aviation sectors that have previously been left behind by airport-centric green policies.
Sources: Airbus
New “Book and Claim” Model Brings Sustainable Fuel to Remote Air Ambulances
Overcoming the “Last Mile” Logistics Challenge
The Role of Airbus and Certification
AirPro News Analysis: The Regulatory Gap
A Model for Future Operations
Photo Credit: Airbus
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