Airbus leads investor group bankrolling a new $200 million sustainable aviation fuel fund

July 23, 2024

•

2 min read

Airbus, the European aircraft manufacturer, said Tuesday that it was leading a group of seven corporate partners in a $200 million investment in a new sustainable aviation fuel financing fund.

Airbus said the idea behind the fund is to accelerate the availability of sustainable aviation fuel by making investments in technologically mature fuel projects. It said each partner brings experience and financial expertise to the fund that will help it diversify investments across a variety of fuel production methods, including those that reuse waste-based feedstocks, and also across geographic regions.

Joining Airbus in the venture are the Air France-KLM Group, Associated Energy Group, LLC, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital Inc. and Qantas Airways Limited. The corporate partners worked with investment manager Burnham Sterling Asset Management to establish the Sustainable Aviation Fuel Financing Alliance investment fund, in which Airbus is the anchor investor.

The fund has made its first investment in Crysalis Biosciences, a tech company dedicated to renewing U.S. chemical manufacturing infrastructure with innovative fuel and chemical production technologies.

The company’s recent accomplishments include the acquisition and renovation of the Monarch facility, an ethanol plant located in Sauget, Ill., which was shuttered in 2019. As of the first quarter of 2024, the plant has completed the upgrades and received the necessary environmental authorizations to resume operations with the aim to produce low carbon intensity SAF and biochemicals.

Each of the seven partners will be able to secure priority contracts for the sustainable aviation fuel developed from any of the projects the fund invests in, based on an agreed-upon allocation volume. The fund will focus fuels that are eligible for RefuelEU Aviation or Carbon Offsetting and Reduction Scheme for International Aviation certification.

Steve Kerch

Steve is a member of Equities Staff editorial team. He brings 22 years of investment publishing experience to the table having worked at MarketWatch most of his career. He is an experienced editor, writer, columnist, TV host and radio commentator with an extensive background in digital and print journalism. Steve is a proven digital traffic generator and an innovator who has developed specialized digital and print content for local and national audiences.

Airbus leads investor group bankrolling a new $200 million sustainable aviation fuel fund

Read Next