AIRBUS, the Air France-KLM Group, Associated Energy Group, LLC, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital Inc, and Qantas Airways Limited have co-invested in a Sustainable Aviation Fuel (SAF) financing fund to accelerate SAF production, reports Biofuel News.
These corporate partners collaborated with investment manager Burnham Sterling Asset Management to establish the Sustainable Aviation Fuel Financing Alliance (SAFFA) investment fund, with Airbus as the Anchor Investor.
The seven partners have collectively committed US$200 million to this initiative.
Each partner brings unique experience and financial expertise to the fund, aiming to enhance SAF availability by investing primarily in technologically mature SAF-producing projects, such as those using waste-based feedstocks.
Investments will be diversified across various SAF production pathways and regions.
The partners may enter into priority contracts to secure SAF offtakes from the projects SAFFA invests in, ensuring allocated volumes. SAFFA focuses on SAF that qualifies for RefuelEU Aviation or CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) certification.
SAFFA's first investment was in Crysalis Biosciences, a tech company focused on renewing U.S. chemical manufacturing infrastructure with innovative fuel and chemical production technologies.
Recently, Crysalis Biosciences acquired and renovated the Monarch facility, an ethanol plant in Sauget, Illinois, USA, which had been closed since 2019.
As of the first quarter of 2024, the plant has completed upgrades and obtained the necessary environmental authorizations to resume operations, aiming to produce low-carbon intensity SAF and biochemicals.