United Airlines ( NASDAQ: UAL ) announced the launch of a sustainable flight fund. The fund is called a first-of-its-kind investment vehicle designed to support start-ups focused on decarbonizing air travel by accelerating the research, production and technologies associated with sustainable aviation fuel.
The sustainable flight fund will start with more than $100M in investments from United and inaugural partners Air Canada ( OTCQX:ACDVF ), Boeing ( BA ), GE Aerospace ( GE ), JPMorgan Chase ( JPM ), and Honeywell ( HON ). The participants will invest alongside United in sustainable aviation fuel technology and production start-ups identified by United. In the past two years alone, United Airlines Ventures has invested in start-ups such as Cemvita, Dimensional Energy, and NEXT Renewable Fuels.
The fund is also taking contributions from United passengers, with free MileagePlus Miles being given away by the airline company as a thank-you.
"We're creating a system that drives investment to build a new industry around sustainable aviation fuel, essentially from scratch. That's the only way we can actually decarbonize aviation," noted United CEO Scott Kirby.
Looking ahead, the UAV Sustainable Flight Fund is open to investment by corporations across industries and the fund will prioritize investment in new technology, advanced fuel sources and proven producers, all in an effort to scale the supply of SAF. Partners of the fund also have the potential to gain preferential access to environmental attributes associated with United's supply of SAF.
The backdrop: What is sustainable aviation fuel? SAF is called an alternative to conventional jet fuel that, on a lifecycle basis, reduces greenhouse gas emissions associated with air travel compared to conventional jet fuel alone. SAF, which currently must be blended with conventional jet fuel to meet regulatory requirements for use within the aircraft, is being made from used cooking oil and agricultural waste, and, in the future, could be made from other feedstocks including household trash or forest waste.
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United Airlines attracts major partners for sustainable aviation fuel technology fund