British Airways owner International Airlines Group has agreed a “significant” investment into UK-based sustainable fuel specialist Nova Pangaea Technologies.
IAG, which also owns Iberia, Aer Lingus, Vueling and LEVEL, has announced that it is taking a stake in Nova Pangaea. Further details of this investment have not been disclosed.
Nova Panagaea specialises in developing biofuels from non-food agricultural waste and wood residues. The company is also looking to expand into North America.
The two companies are already working together to open a commercial plant for sustainable aviation fuel (SAF) in the UK as part of the Project Speedbird initiative.
IAG’s latest investment will help to “progress the development” of this production facility, known as NOVAONE, in north-east England and is in addition to the airline group’s other SAF purchases and commitments, which currently add up to $865 million.
Luis Gallego, IAG’s CEO, said: “Sustainable Aviation Fuel is the only realistic option for long-haul airlines to decarbonise, which is why investment in this area is so critical.
“At IAG, we have set a goal to use 10 per cent SAF by 2030, and we are not just buying SAF, we are willing to invest in developing the industry, but we need governments in the UK and Europe to act now to encourage further investment.”
Sarah Ellerby, CEO of Nova Pangaea, said that IAG’s investment was a “transformational milestone” and a “real endorsement” of the company’s work in developing SAF.
“We are delighted to be adding IAG – one of the foremost names in the aviation industry - to our shareholder register,” added Ellerby.
“Our facility will be the UK's first commercial plant of its kind, but we also see enormous potential in the North American market. We have set our sights in delivering a sustainable source of SAF to decarbonise the aviation sector, not just in the UK, but globally too.”
The development of SAF, which can cut carbon emissions by up to 80 per cent compared with traditional jet fuel, is crucial to the aviation industry’s goal to decarbonise by 2050.
Virgin Atlantic announced last week that it planned to operate the first transatlantic flight using 100 per cent SAF on 28 November.