The oneworld airline alliance, together with Breakthrough Energy Ventures (BEV), has unveiled a new investment fund aimed at tackling the scarcity and high cost of sustainable aviation fuels (SAF). Led by cornerstone investors American Airlines and Alaska Airlines, the initiative seeks to accelerate the commercial development of cost-effective, scalable and lower-emission fuel alternatives for the aviation sector.
The oneworld BEV Fund will invest in novel SAF technologies, support alternative fuel markets, foster innovation, and build a diverse supply chain to meet future demand. SAF is regarded as a critical tool in the industry’s decarbonisation strategy, with the potential to cut lifecycle emissions of jet fuel by up to 80% compared with conventional fuels.
“By investing in the SAF technologies of the future, American and our oneworld partners are making a business decision to accelerate development at scale and reduce costs,” said Robert Isom, chief executive of American Airlines and chairman of oneworld. Alaska Airlines chief executive Ben Minicucci added that BEV’s technical expertise would be key in creating the market for next-generation fuels.
Nat Pieper, chief executive of oneworld, said the fund formed part of the alliance’s long-term mission to reduce emissions and invest in technologies that could speed the arrival of innovative fuels. “By working together, we’ll be better positioned to create long-term solutions for the energy transformation of an industry that is vital to global economic growth,” he said.
BEV, the climate technology investment fund founded by Bill Gates, will manage the fund, bringing its scientific and commercial expertise to support the growth of early-stage climate companies. “These are complex system-level challenges that will take time to solve,” said Eric Toone, BEV’s chief technology officer. “The fund is built with the long-term vision and staying power to bring solutions to market.”
The fund has also secured backing from other oneworld members, including International Airlines Group, Cathay Pacific and Japan Airlines, with Singapore Airlines joining as a non-alliance investor. Executives from all four airlines underlined the importance of collective action to expand the SAF market and called for supportive policy frameworks to scale production.
The aviation industry, which generates an estimated $4.1 trillion in economic activity and supports 86.5 million jobs worldwide, accounts for around 2–3% of global CO₂ emissions. Demand for air travel is expected to rise sharply in the coming decades, heightening the urgency of accelerating SAF deployment.
