Qantas has joined forces with a coalition of airlines, aircraft manufacturers, energy companies, and financial institutions to accelerate the global production of aviation biofuel, reported Aviation Source News.
Known as the Sustainable Aviation Fuel Financing Alliance (SAFFA), this collective aims to bolster the aviation industry’s efforts in reducing its carbon footprint.
The alliance includes notable initial partners such as Airbus, serving as the anchor investor, along with Air France-KLM, Mitsubishi HC Capital Inc., BNP Paribas, and Associated Energy Group.
Burnham Sterling Asset Management will act as the fund manager. Collectively, these industry leaders have committed approximately $US200 million to launch the initiative.
Qantas has committed US$50 million (AU$75 million) from its Climate Fund, established in 2023 in collaboration with Airbus, specifically focusing on Sustainable Aviation Fuel (SAF) projects and other environmental initiatives.
SAF has emerged as a crucial tool for the airline industry in its efforts to reduce emissions, especially considering that widespread adoption of low and zero-emission aircraft technology is still decades away.
In the interim, SAF provides a more immediate solution. However, global demand currently exceeds supply, underscoring the urgent need for increased production capacity.
