IAG invests in Nova Pangaea Technologies to fund NOVAONE SAF refinery
International Airlines Group (IAG), parent company of Aer Lingus, British Airways, Iberia and Vueling, has announced an investment in Nova Pangaea Technologies (NPT). The investment will fund the development of the NOVAONE Teesside refinery, the first waste-to-fuel commercial-scale production facility in the UK.
NPT uses agricultural waste and wood residue as the feedstock which is converted into second-generation bioethanol and then into Sustainable Aviation Fuel (SAF). Construction on the facility is expected to begin later this year, with the refinery scheduled to be in production by 2025.
Sarah Ellerby, CEO, Nova Pangaea Technologies said: “Our facility will be the UK’s first commercial plant of its kind, and it will play a crucial role in decarbonising the aviation sector, as well as providing local employment opportunities. We are confident of beginning construction later this year and producing second-generation biofuels by 2025.”
The most recent investment from IAG, it is part of the strategy to secure UK SAF supply ahead of the UK government’s SAF mandate, expected to come in 2025. IAG had already made $865m in investments and purchases up to the end of 2022.
“At IAG, we have set a goal to use 10% SAF by 2030,” said Luis Gallego, CEO, IAG. “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.”