The International Airlines Group (IAG), the parent company of Aer Lingus, British Airways, Iberia, Vueling and LEVEL, has announced an investment into Nova Pangaea Technologies (NPT), whose technology offers a crucial pathway to the production of sustainable aviation fuel (SAF).
NPT's technology converts agricultural waste and wood residue feedstocks into second-generation bioethanol, which can then be processed into SAF.
IAG's investment will progress the development of 'NOVAONE', NPT's first waste-to-fuel commercial-scale production facility, and the first of its kind in the UK. The project is in addition to IAG's investment programme in SAF, which at the end of 2022 amounted to US$865 million in firm commitments on SAF purchases and investments.
A recent report from cCarbon calculates that North America will produce 36% of the world's SAF by 2030, with the SAF global market value reaching US$29.7 billion, up from US$1.1 billion in 2022. NPT is eyeing expansion in North America as the region will play an important role in delivering global supplies of SAF.
Luis Gallego, CEO, IAG, said: "SAF 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% SAF by 2030. We are not just buying SAF, we are also 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, Nova Pangaea Technologies, said: "This is a transformational milestone. We are delighted to be adding IAG to our shareholder register. 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."