AIRLINES & ALLIANCES

oneworld and BEV Launch $150M Global Fund to Fuel the Future of Sustainable Aviation

oneworld alliance, in partnership with Breakthrough Energy Ventures and major global airlines, has launched a $150 million fund to accelerate the development and commercialization of next-generation Sustainable Aviation Fuels to cut aviation emissions and scale cleaner energy solutions.

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oneworld® alliance, together with several of its leading member airlines and Breakthrough Energy Ventures (BEV), today unveiled the oneworld BEV Fund, a $150 million investment initiative aimed at transforming the aviation fuel landscape. The fund seeks to accelerate the commercialization of cost-effective, scalable, and low-emission alternatives to conventional jet fuel, helping the industry meet both regulatory targets and growing consumer demand for sustainable travel.

The fund’s cornerstone investors include Alaska Airlines and American Airlines, joined by alliance partners International Airlines Group (IAG), Cathay Pacific, and Japan Airlines, as well as Singapore Airlines, which is participating as an external strategic investor. Together, these carriers represent some of the world’s most significant aviation markets, spanning North America, Europe, and Asia.

Fund Objectives

The oneworld BEV Fund is designed to:

• Accelerate innovation in SAF by supporting early-stage companies developing breakthrough fuel pathways beyond current first-generation technologies.

• Scale alternative fuel markets to provide airlines with reliable access to lower-carbon energy sources.

• Enhance energy security and regional development, creating new economic opportunities in fuel production hubs worldwide.

• Build a resilient global SAF supply chain, diversifying feedstocks and technologies to ensure long-term stability.

• Generate economic value for investors while supporting the aviation sector’s decarbonization commitments.

Industry Context

Commercial aviation currently accounts for 2–3% of global CO₂ emissions, according to the International Air Transport Association (IATA), with air travel demand projected to nearly double by 2040. Sustainable Aviation Fuel (SAF), which can reduce lifecycle emissions by up to 80% compared to fossil-based jet fuel, is widely recognized as the most practical near- to medium-term solution. However, today’s SAF supply remains less than 0.2% of global jet fuel consumption, constrained by limited feedstock availability, high production costs, and underdeveloped infrastructure.

The new oneworld BEV Fund aims to address these bottlenecks by investing in next-generation SAF technologies – including fuels derived from renewable power, captured carbon, municipal waste, and novel biomass sources – with the goal of making them commercially viable and price competitive.

Leadership Statements

• Robert Isom, CEO of American Airlines and Chairman of oneworld, emphasized that the initiative reflects both a business and climate imperative: “By backing scalable, lower-cost SAF pathways, we are positioning aviation to remain competitive while addressing customer expectations and environmental responsibilities.”

• Ben Minicucci, CEO of Alaska Air Group, highlighted the role of collaboration: “Partnering with BEV and fellow airlines allows us to accelerate innovation and unlock technologies that can sustain aviation’s long-term energy transition.”

• Nat Pieper, CEO of oneworld, noted the strategic importance of collective action: “Our member airlines are united by a mission to bring SAF technologies to market faster, ensuring aviation continues to connect the world while reducing its climate footprint.”

BEV, founded by Bill Gates, will manage the fund. With more than $3.5 billion in committed capital and over 110 climate-tech companies in its portfolio, BEV brings unparalleled technical and investment expertise in scaling breakthrough energy solutions.

Eric Toone, Chief Technology Officer at Breakthrough Energy and Managing Partner at BEV, explained: “SAF is one of the most difficult but most important decarbonization challenges. With the oneworld BEV Fund, we are building the long-term platform needed to advance technologies that can reduce emissions at scale and integrate seamlessly into today’s aviation systems.”

Global Airline Support

Other executives underscored the importance of the initiative:

• Luis Gallego, CEO of IAG, called SAF “the most viable pathway to net zero” but stressed the need for supportive policy frameworks to encourage investment and infrastructure.

• Ronald Lam, CEO of Cathay Group, pointed to Asia’s pivotal role in developing a regional SAF ecosystem.

• Mitsuko Tottori, President & CEO of Japan Airlines, emphasized the national importance of reducing aviation’s impact for an island nation reliant on global air links.

• Lee Wen Fen, Chief Sustainability Officer of Singapore Airlines, reaffirmed the carrier’s commitment to commercializing next-generation SAF through global partnerships.

Aviation’s Decarbonization Challenge

The aviation industry contributes roughly $4.1 trillion to global GDP and supports 86.5 million jobs, according to the Air Transport Action Group (ATAG). However, without breakthroughs in fuel technology, its carbon footprint could rise sharply as demand grows. While new aircraft and operational efficiencies have improved performance, SAF remains the cornerstone of long-term decarbonization strategies, alongside emerging technologies such as hydrogen propulsion and electric aviation for short-haul routes.

By pooling resources and expertise, the oneworld BEV Fund represents one of the most ambitious collaborative efforts to date to close the SAF investment gap and accelerate the aviation sector’s energy transition.

Source: oneworld