Airbus, the Air France-KLM Group, Associated Energy Group, LLC, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital Inc., and Qantas Airways Limited have joined forces to create the Sustainable Aviation Fuel Financing Alliance (SAFFA) investment fund.
This initiative, managed by Burnham Sterling Asset Management with Airbus as the Anchor Investor, is set to channel approximately $200 million into accelerating the production of Sustainable Aviation Fuel (SAF). The fund targets technologically mature SAF-producing projects that primarily use waste-based feedstocks, diversifying investments across various production pathways and regions.
Each partner in the alliance contributes distinct financial expertise and experience, aiming to significantly advance the availability and use of SAF to meet global sustainability goals. Through SAFFA, the partners will have the opportunity to secure priority contracts for SAF off-takes from these investments, concentrating its efforts on SAF that qualifies for certification of RefuelEU Aviation or CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
SAFFA has already made its first investment in Crysalis Biosciences, a technology company focused on renewing US chemical manufacturing infrastructure. Their efforts include acquiring and renovating the Monarch facility, an ethanol plant in Sauget, Illinois, which had been shuttered since 2019. Following extensive upgrades and the acquisition of necessary environmental authorisations, the plant is poised to resume operations in the first quarter of 2024, producing low-carbon intensity SAF and biochemicals, marking a pivotal advancement in sustainable aviation and chemical production.