Aircraft manufacturer Airbus and several partners will work together to speed up SAF production through a new financing fund.
AIRBUS AND PARTNERS LAUNCH SAF FINANCING FUND
Airbus, the Air France-KLM Group, Associated Energy Group, LLC, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital Inc. and Qantas Airways Limited have co-invested in a Sustainable Aviation Fuel (SAF) financing fund.
In a press release, Airbus said the initiative has been designed to accelerate the production of SAF.
Current production levels of SAF are insufficient. Demand will indeed outstrip supply – with new mandates coming into place next year.
SAF FINANCING FUND
The corporate partners worked with investment manager Burnham Sterling Asset Management to establish the Sustainable Aviation Fuel Financing Alliance (SAFFA) investment fund.
Airbus is the anchor investor in this initiative. The commitment from the seven partners amounts to approximately US$200 million.
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ACCELERATING SAF PRODUCTION
Each partner brings experience and financial expertise to the fund.
That said, each of these partners also has the ambition to accelerate the availability of SAF by investing mainly in technologically mature SAF-producing projects using for instance waste-based feedstocks.
DIVERSE INVESTMENTS
Investments will be diversified across various SAF’s production pathways and also by region.
Each partner may then enter into priority contracts to secure SAF offtakes from the various projects SAFFA will invest in, for its allocated volumes.
REDUCTION SCHEME ACCREDITATION
SAFFA is focusing on SAF that is eligible for RefuelEU Aviation or CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) certification.
SAFFA made its first investment in Crysalis Biosciences, a tech company dedicated to renewing U.S. chemical manufacturing infrastructure with innovative fuel and chemical production technologies.
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SAFFA ACCOMPLISHMENTS
The company’s recent accomplishments include the acquisition and renovation of the Monarch facility. This is an ethanol plant located in Sauget, Illinois, USA, which was shuttered in 2019.
As of the first quarter of 2024, the plant has completed the upgrades and received the necessary environmental authorizations to resume operations intending to produce low-carbon intensity SAF and biochemicals.
.@Airbus and partners invest in #SustainableAviationFuel financing fund #FIA2024 https://t.co/cWiuU2z5ao pic.twitter.com/NTdw07F7nt
— Airbus Newsroom (@AirbusPRESS) July 23, 2024
