Airbus leads $200m SAFFA alliance to boost SAF production

Airbus, Air France-KLM Group, Associated Energy Group, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital and Qantas Airways announced the launch of Sustainable Aviation Fuel Financing Alliance (SAFFA) investment fund with investment commitment of $200m to accelerate the production of sustainable aviation fuel.

The seven firms worked with investment manager Burnham Sterling Asset Management to establish SAFFA with Airbus is the anchor investor.

“Each partner brings experience and financial expertise to the fund with the ambition to accelerate the availability of SAF by investing mainly in technologically mature SAF-producing projects using for instance waste-based feedstocks. Investments will be diversified across various SAF’s production pathways and also by region,” said a release issued by the seven partners.

As part of the alliance, each partner can enter into priority contracts to secure SAF offtakes from the various projects SAFFA will invest in, for its allocated volumes.

The alliance will focus on SAF that is eligible for RefuelEU Aviation or CORSIA certification.

SAFFA made its first investment in chemical manufacturing infrastructure company Crysalis Biosciences which uses innovative fuel and chemical production technologies.

Moreover, the company also acquired and renovated ethanol plant in Illinois US.

“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,” said the alliance in a statement.