oneworld Alliance Partners with Breakthrough Energy Ventures to Launch Major Investment Fund for Sustainable Aviation Fuels
In a landmark move for the aviation industry, oneworld Alliance and its member airlines, together with Breakthrough Energy Ventures (BEV), have unveiled a new investment fund aimed at tackling one of the sector’s most pressing challenges: the high cost and limited availability of Sustainable Aviation Fuel (SAF). The announcement, made on Wednesday, underscores the aviation industry’s collective recognition that transformational changes are required if the sector is to achieve meaningful progress toward net-zero emissions goals.
At the heart of the initiative is the oneworld® BEV Fund, a pioneering vehicle designed to accelerate the commercialization of next-generation SAF technologies. The fund’s primary mission is to support scalable, cost-effective, and low-emission alternatives to conventional jet fuel. By doing so, oneworld and BEV are positioning the aviation industry not just as a consumer of new energy technologies but as a proactive driver of the global energy transition.
Structure and Purpose of the oneworld BEV Fund
The fund is led by cornerstone investors American Airlines and Alaska Airlines, both of which have demonstrated strong commitments to aviation decarbonization. Their participation reflects a growing recognition that long-term industry competitiveness will hinge on the successful scaling of SAF.
The objectives of the fund include:
- Investing in novel SAF technologies that can outperform existing production methods.
- Supporting the development of alternative fuel markets to ensure aviation’s long-term energy needs are met.
- Creating tangible economic value for investors, local regions, and global communities.
- Driving technology innovation and scientific breakthroughs in energy systems.
- Building a resilient and diverse SAF supply chain, reducing dependence on limited first-generation feedstocks.
Together, these goals represent a comprehensive strategy for overcoming the current barriers that prevent SAF from reaching mainstream commercial viability.
Voices from the Industry
Several leaders from oneworld member airlines emphasized the fund’s importance in aligning business imperatives with environmental responsibility.
Robert Isom, CEO of American Airlines and chairman of oneworld, described the initiative as both a strategic and ethical decision:
“By investing in the SAF technologies of the future, American and our oneworld partners are making a business decision to accelerate the development of novel technologies with the potential to reach larger scale at lower prices than current technologies can achieve. Reducing the emissions from our operation meets the demands of our customers, strengthens our competitiveness, and ensures we can continue to deliver the enormous economic benefits of commercial aviation for generations to come.”
Ben Minicucci, CEO of Alaska Air Group, highlighted the long-term vision:
“Alaska Airlines is excited to work alongside oneworld carriers to invest in innovative and cost-competitive SAF technology to drive the long-term energy transformation for our industry. In Breakthrough Energy Ventures, we have a partner with the scientific, technical, and commercial expertise to make effective investment decisions that will create the market for next-generation fuels and power our industry in the years ahead.”
From the alliance perspective, Nat Pieper, CEO of oneworld, stressed the significance of collective action:
“Investing in SAF with Breakthrough Energy Ventures is part of oneworld’s strategy to create a future of aviation that solves problems at scale. By working together, we’ll be better positioned to create long-term solutions for the energy transformation of an industry that is vital to global economic growth.”
Breakthrough Energy Ventures: A Partner with Scale
Breakthrough Energy Ventures, founded by Bill Gates, brings to the table not only substantial capital but also unparalleled expertise in identifying and scaling breakthrough technologies. With deep technical knowledge and a track record in early-stage climate technology investment, BEV will manage the fund, applying its rigorous due diligence models to maximize both environmental and commercial impact.
Eric Toone, Chief Technology Officer of Breakthrough Energy and Managing Partner of BEV, explained the rationale:
“Sustainable Aviation Fuel is essential to addressing the sector’s environmental impact and represents a major commercial opportunity. The oneworld BEV Fund is built to identify and scale breakthrough SAF technologies that can deliver real emissions reductions, compete with fossil fuels on cost, and integrate seamlessly with today’s aviation infrastructure. These are complex systems-level challenges, and the fund is built with the long-term vision and staying power to help bring solutions to market.”
Expanding the Investor Base
While the fund’s foundation rests with oneworld airlines, it is not restricted to alliance members. Recognizing the need for broad-based collaboration, the initiative has already welcomed Singapore Airlines as an external investor. Other oneworld carriers supporting the fund include International Airlines Group (IAG), Cathay Pacific, and Japan Airlines.
Their participation underscores the power of collective industry commitment. As Luis Gallego, CEO of IAG, noted:
“Sustainable Aviation Fuel is the most viable pathway for the aviation industry to progress to net zero. Today’s announcement highlights the potential of collaboration, showing how leading airlines can come together with the goal to accelerate action. To unlock SAF’s full potential, supportive policy frameworks are also essential.”
Ronald Lam, CEO of Cathay Group, emphasized Asia’s role in the SAF ecosystem:
“As an airline with significant long-haul operations, scaling innovation to make SAF more accessible and cost-competitive is critical to our future. With Asia playing a pivotal role in the global SAF ecosystem, we’re proud to help lead this momentum from the region.”
Mitsuko Tottori, Group CEO of Japan Airlines, spoke from the perspective of an island nation reliant on aviation:
“Relationships with countries and regions through air transportation are essential for Japan. We believe it is our mission to tackle aviation’s environmental impact, and through oneworld we look forward to promoting SAF technology and expanding its use across Asia.”
Lee Wen Fen, Chief Sustainability Officer of Singapore Airlines, echoed this sentiment:
“Our investment in this fund demonstrates Singapore Airlines’ strong support for developing and commercializing next-generation SAF. Reducing jet fuel emissions demands collective action, and this initiative will drive innovation toward meaningful progress in this crucial transformation.”
Why SAF Matters
The aviation sector is a cornerstone of the global economy, generating over $4.1 trillion in economic activity and supporting 86.5 million jobs worldwide. However, it also contributes 2–3% of global carbon dioxide emissions, along with other environmental effects such as non-CO₂ impacts at high altitudes.
SAF represents the most promising pathway to achieving net-zero aviation in the near to medium term. Unlike alternative propulsion technologies — such as hydrogen or electric aircraft — which may take decades to reach commercial scale for long-haul flights, SAF is a drop-in fuel that can be used with today’s engines and infrastructure.
Current SAF can reduce lifecycle emissions by up to 80% compared to conventional jet fuel. Yet challenges remain. Today’s production is limited, heavily reliant on feedstocks such as used cooking oil and agricultural residues. Supply is fragmented and insufficient, and prices are significantly higher than traditional jet fuel. Without new investment and technology breakthroughs, SAF cannot scale to the levels needed to meet industry demand.
This is where the oneworld BEV Fund comes in — providing the capital, expertise, and collaborative framework to transform SAF from a niche solution into a mainstream, global energy source for aviation.
The Path Forward
The launch of this fund is more than an industry announcement; it is a call to action. Aviation’s decarbonization requires not only airline investment but also supportive government policies, enabling infrastructure, and continued research. Policymakers are being urged to create frameworks that incentivize SAF production and reduce risk for investors.
The fund also signals a shift in mindset. Airlines are no longer waiting for governments or suppliers to act; instead, they are pooling resources to catalyze the innovation required. This proactive approach reflects a growing understanding that sustainability is now central to both business resilience and consumer trust.
The creation of the oneworld BEV Fund marks a decisive step toward tackling aviation’s toughest challenge. By combining the global scale of oneworld airlines with the innovation-driven investment strategy of Breakthrough Energy Ventures, the initiative aims to deliver SAF technologies that are scalable, cost-competitive, and environmentally sustainable.
If successful, the fund could help reshape the energy profile of an industry vital to global commerce, tourism, and connectivity. More importantly, it could provide a blueprint for how cross-industry collaboration, investment, and innovation can converge to solve systemic climate challenges.