International Airlines Group (IAG), the parent company of Aer Lingus, British Airways, Iberia, Vueling and LEVEL, has announced a significant investment into cleantech business, Nova Pangaea Technologies (NPT).
UK-based Nova Pangaea Technologies is developing advanced biofuels from non-agricultural waste (wood residue feedstocks). Its state-of-the-art technology is a crucial pathway to the production of Sustainable Aviation Fuel (SAF).
This new investment comes in addition to the US$865 million already made by IAG towards SAF. It will progress and support the development of ‘NOVAONE’, NPT’s first waste-to-fuel plant facility in the UK.
This investment, in turn, will help to reinforce the UK’s SAF mandate, which states that at least 10% of aviation fuel must come from sustainable sources by 2030.
Luis Gallego, IAG’s CEO, said:
“Sustainable Aviation Fuel is the only realistic option for long-haul airlines to decarbonise, which is why investment in this area is so critical.
“At IAG, we have set a goal to use 10% SAF by 2030. And we are not just buying SAF, we are willing to invest in developing the industry, but we need governments in the UK and Europe to act now to encourage further investment.”
The journey towards SAF
NPT’s eye on expansion in the USA will play an important role in the growing need for this fuel. By 2030, it is estimated that North America will produce 36% of the world’s SAF. The global market value will also reach $29.7 billion, up from $1.1 billion in 2022.
IATA has identified that the aviation industry is at a potential tipping point for SAF, with a projected 300bn litres estimated to be produced by 2030 – albeit with the right government policies in place to support this.
Presently, within IATA’s road to net-zero map, SAF is identified as the largest contributor to the industry’s journey in reducing emissions at 65%.
Sarah Ellerby, CEO of Nova Pangaea Technologies, said:
“[The investment] is a real endorsement of the crucial work Nova Pangaea Technologies is doing. We are delighted to be adding IAG – one of the foremost names in the aviation industry – to our shareholder register.
“Our facility will be the UK’s first commercial plant of its kind, but we also see enormous potential in the North American market. We have set our sights on delivering a sustainable source of SAF to decarbonise the aviation sector, not just in the UK, but globally too.”
