(United Airlines/PR Newswire) Investment vehicle supports start-ups focused on the reduction of carbon emissions in aviation through sustainable aviation fuel research, technology and production; Fund starts with more than $100 million investment from United and its inaugural corporate partners like JPMorgan Chase, GE Aerospace, Honeywell, and Air Canada; Customers can now see an estimate of each flight's carbon footprint in their search on United's website and app and can also contribute to supplement United's investment in the United Airlines Ventures Sustainable Flight Fund when buying a ticket - first 10,000 people to add to the fund receive MileagePlus® miles as a thank-you; United has already invested in the future production of three billion gallons of SAF - the most of any airline in the world*
In an effort to rally businesses and consumers, United today launched the United Airlines Ventures Sustainable Flight Fund SM, a first-of-its-kind investment vehicle designed to support start-ups focused on decarbonizing air travel by accelerating the research, production and technologies associated with sustainable aviation fuel (SAF).
The fund starts with more than $100 million in investments from United and its inaugural partners** Air Canada, Boeing, GE Aerospace, JPMorgan Chase, and Honeywell. Through the fund, these and potentially additional corporate participants will invest alongside United in SAF technology and production start-ups identified by United. In the past two years alone, United Airlines Ventures has invested in start-ups such as Cemvita, Dimensional Energy, and NEXT Renewable Fuels.
And in a first among U.S. airlines, anyone who buys a ticket on the United website or app now has the option to contribute to supplement United's investment in the fund. The first 10,000 people who choose to contribute will each receive 500 MileagePlus Miles as a thank-you.
SAF is an alternative to conventional jet fuel that, on a lifecycle basis, reduces greenhouse gas (GHG) emissions associated with air travel compared to conventional jet fuel alone. SAF, which currently must be blended with conventional jet fuel to meet regulatory requirements for use within the aircraft, is being made from used cooking oil and agricultural waste, and, in the future, could be made from other feedstocks including household trash or forest waste. To date, United has invested in the future production of over three billion gallons of SAF - the most of any airline in the world.***
"Solving climate change is doable but it requires hard work and real leadership," said United CEO Scott Kirby. "This fund is unique. It's not about offsets or things that are just greenwashing. Instead, we're creating a system that drives investment to build a new industry around sustainable aviation fuel, essentially from scratch. That's the only way we can actually decarbonize aviation."
UAV Sustainable Flight Fund
The UAV Sustainable Flight Fund is open to investment by corporations across industries and the fund will prioritize investment in new technology, advanced fuel sources and proven producers, all in an effort to scale the supply of SAF. Partners of the fund also have the potential to gain preferential access to environmental attributes associated with United's supply of SAF.
Companies interested in joining the fund can visit united.com/ventures.
United has already made investments in or signed purchase agreements with companies using a variety of ingredients and technologies to produce SAF, including feedstocks like ethanol, animal byproducts, forestry and crop waste, and municipal waste, as well as early-stage, promising technologies like synthetic biology and power to liquids. United Airlines Ventures will move selected existing SAF investments to establish the UAV Sustainable Flight Fund portfolio.
Consumer Awareness and Call to Action
United is also educating consumers about their air travel carbon footprint and giving them the option to take action.
Starting today on United.com and the United app, United becomes the first U.S. airline to show customers an estimate of each flight's carbon footprint in their search. Green shading will indicate a lower-carbon option on a per economy seat passenger basis in a customer's chosen itinerary. A flight's carbon footprint is measured in kg CO2e (kilograms of carbon dioxide equivalent) and United's estimates, which could differ from actual flight emissions, are based on aircraft type, flying time, seat capacity and the number of people and cargo on a given flight.
And consumers who book travel through United for travel within or from the U.S. will now see an option to contribute to supplement United's investment in the UAV Sustainable Flight Fund before check-out. Customers have the choice to contribute $1, $3.50 or $7.00.****
The default option for customer contributions is set at $3.50 to illustrate the potential impact of customer action at scale: if the 152 million people who flew on United in 2022 each contributed just $3.50 to the UAV Sustainable Flight Fund, that would be enough to design and build a SAF refinery capable of producing as much as 40 million gallons of alternative fuel annually.*****
The Federal Government Recognizes the Value of SAF
The 2022 Inflation Reduction Act includes the largest governmental climate change investments in U.S. history - a new blender's tax credit specifically for SAF along with other critical incentives for clean energy and carbon capture – that will help spur an increase in SAF infrastructure and supply while lowering costs for SAF consumers.
The U.S. military currently uses nearly five billion gallons of jet fuel annually and the Department of Defense will use a jet fuel blend containing at least 10% SAF by 2028 because of the 2023 National Defense Authorization Act.
And according to the U.S. Department of Energy, the country's vast feedstock resources are enough to meet the projected SAF demand of the entire U.S. aviation industry.
United's Commitment to Net Zero Emissions by 2050
United aims to be 100% green by reducing its GHG emissions 100% by 2050, without relying on traditional carbon offsets. In addition to the UAV Sustainable Flight Fund, United has launched a SAF purchasing program called the Eco-Skies Alliance and established a venture fund - United Airlines Ventures - to identify and invest in companies and technologies that can decarbonize air travel. These strategic investments include carbon capture, hydrogen-electric engines, electric regional aircraft and air taxis.
About United
United's shared purpose is "Connecting People. Uniting the World." From our U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers. United is bringing back our customers' favorite destinations and adding new ones on its way to becoming the world's best airline. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL". For further information about our environmental impact, review United's Corporate Responsibility Report and Annual Report on Form 10-K, available at crreport.united.com and ir.united.com.
MileagePlus Footnote Regarding Miles Awarded for Customer Contributions
Must be a MileagePlus member to receive miles. MileagePlus membership is free. READ MORE
Related articles
- A Sudden Rush to Make Sustainable Aviation Fuel Mainstream (New York Times)
- A sudden rush to make sustainable aviation fuel mainstream (New York Times/Spokesman Review)
- Why airlines want to charge you for flying on french-fry oil (Washington Post)
- United Airlines announces new investments to move the needle on decarbonizing aviation (USA Today)
- United's Sustainable Flight Fund Grows to Nearly $200 Million and Adds Strategic Partners (United Airlines/PR Newswire)
- Why United Airlines Is Leading Investments in Renewable Fuel Startups (Skift)
- United Adds New Corporate Partners to Sustainable Flight Fund That Now Exceeds $200 Million (United Airlines/PR Newswire)
- Embraer joins United Airlines Ventures Sustainable Flight Fund (Embraer)
- Natixis Corporate & Investment Banking Joins United Airlines as Corporate Partner with Investments in Expansion of Sustainable Aviation Fuel (Biofuels Central)
- Aircastle makes investment commitment to SAF fund (Biofuels International)
Excerpt from New York Times: Scott Kirby, United’s chief executive, said in an interview that he wanted his airline to be a leader in sustainable fuels. His reasons, he said, are twofold: He believes that’s where the industry is headed, and he’s eager to play a role in reducing global emissions as the planet rapidly warms.
“I am genuinely a nerd about climate change,” he said. “The implications are so dramatic, and there are all these tipping points that once you hit them they’re effectively irreversible.”
Making sustainable aviation fuel mainstream will be difficult and costly to achieve. Sustainable aviation fuels “are currently at various stages of technology readiness, and the scaling of production and deployment faces major technological and economic hurdles,” according to a recent report by the Rhodium Group, an energy sector consulting group.
Only two companies make sustainable aviation fuel that is used by the major airlines at scale. World Energy, a U.S. company, has a plant in Los Angeles where it supplies United and other airlines and is building a new factory in Houston. Neste, a Finnish oil company, produces sustainable jet fuel in Europe.
Others companies are racing to catch up. LanzaTech, based in Chicago, went public this month on the Nasdaq and is valued at nearly $1 billion. The company is building a factory in Georgia where it plans to produce sustainable fuel using ethanol.
Gevo, a startup based in Denver that is also making sustainable aviation fuel from ethanol, broke ground last year on a plant in South Dakota.
“I’ve been doing renewables for 25 years, and I’m one of the more cynical people in the space,” said Patrick Gruber, the chief executive of Gevo. “But I think there’s been a shift in the last few years. Airlines believe they are going to be held accountable, and their customers are saying they have to change.”
...
“Carbon offsets have been a bone of contention for me because they’re almost all fraudulent,” Kirby said. READ MORE
Excerpt from United Airlines/PR Newswire: In just five months, the United Airlines Ventures Sustainable Flight Fund SM increased in size to nearly $200 million and welcomes American Express Global Business Travel, Aramco Ventures, Aviation Capital Group, Bank of America, Boston Consulting Group, Groupe ADP, Hawaiian Airlines, and JetBlue Ventures
Fund was launched in February to rally businesses and consumers to support the supply of sustainable aviation fuel (SAF) - more than 60,000 customers have contributed
CHICAGO, July 25, 2023 /PRNewswire/ -- The United Airlines Ventures Sustainable Flight Fund – a way for companies and consumers to come together and increase the supply of sustainable aviation fuel (SAF) through the support of start-ups - has increased its investment power to nearly $200 million and added eight new corporate partners, five months after its initial launch.
United plane fueled with SAF.
American Express Global Business Travel, Aramco Ventures, Aviation Capital Group, Bank of America, Boston Consulting Group, Groupe ADP, Hawaiian Airlines and JetBlue Ventures, will join inaugural fund partners Air Canada, Boeing, GE Aerospace, JPMorgan Chase, and Honeywell.
United customers also have the option to contribute to supplement the airline's investment in the UAV Sustainable Flight FundSM when they book flights. Since the fund launched, more than 60,000 United customers have contributed a total of more than $200,000.
SAF is an alternative to conventional jet fuel that, on a lifecycle basis, reduces greenhouse gas (GHG) emissions associated with air travel compared to conventional jet fuel alone. To date, United has invested in the future production of over five billion gallons of SAF - the most of any airline in the world.1
"While United can't decarbonize the airline industry alone, we can use our leadership and credibility in this space to rally others to join us," said United Airlines Ventures President Michael Leskinen. "Our new and inaugural participants demonstrate the impressive commitment within aviation and beyond to reduce our carbon footprint and combat the threat of climate change. As companies across the globe are increasingly looking for ways to reduce their environmental impact from flying, the UAV Sustainable Flight Fund presents a unique opportunity – instead of fighting over the current limited supply of SAF, with our partners, we're working collaboratively to help scale the SAF industry itself, and to get an equity stake in groundbreaking technology while doing it."
United will continue to recruit corporations across industries to join the fund and will prioritize investment in new technology, advanced fuel sources, and proven producers – all in an effort to help scale the supply of SAF. Partners also have the potential to gain preferential access to environmental attributes associated with United's future supply of SAF.
SAF, which currently must be blended with conventional jet fuel to meet regulatory requirements for use within the aircraft, is being made from used cooking oil and agricultural waste, and, in the future, could be made from other feedstocks including household trash or forest waste. Through the UAV Sustainable Flight Fund, United intends to invest in a variety of SAF feedstocks and technologies. With the right policy incentives to produce SAF, United's efforts could help build a future of sustainable flight.
UAV Sustainable Flight Fund
The UAV Sustainable Flight FundSM launched with more than $100 million in investments from United and its inaugural partners Air Canada, Boeing, GE Aerospace, JPMorgan Chase, and Honeywell. Through the fund, these partners and additional corporate participants will invest alongside United in SAF technology and production start-ups identified by United. In the past two years alone, United Airlines Ventures has already made investments in or signed purchase agreements with companies using a variety of ingredients and technologies to produce SAF, including feedstocks like ethanol, animal byproducts, forestry and crop waste, and municipal waste, as well as early-stage, promising technologies like synthetic biology and power to liquids, incorporating renewable power, hydrogen and carbon capture processes. United Airlines Ventures has moved selected existing SAF investments into the UAV Sustainable Flight FundSM to establish the fund's portfolio.
Consumer Awareness and Call to Action
As part of the fund launch, consumers booking through United for travel within or from the U.S. have an option to contribute to supplement United's investment in the UAV Sustainable Flight FundSM before check-out. Customers have the choice to contribute $1, $3.50 or $7.00. Since the launch, more than 60,000 United customers have contributed for a total of more than $200,000.
The default option for customer contributions is set at $3.50 to illustrate the potential impact of customer action at scale: if the 152 million people who flew on United in 2022 each contributed just $3.50 to the UAV Sustainable Flight Fund, that would be enough to design and build a SAF refinery capable of producing as much as 40 million gallons of alternative fuel annually.2
United's Commitment to Net Zero Emissions by 2050
United aims to be 100% green by reducing its greenhouse gas emissions by 100% by 2050, without relying on traditional carbon offsets. In addition to the UAV Sustainable Flight FundSM, United has launched a SAF purchasing program called the Eco-Skies Alliance and established a venture fund – United Airlines Ventures – to identify and invest in companies and technologies that can decarbonize air travel. These strategic investments include carbon capture, hydrogen-electric engines, electric regional aircraft and air taxis. In May 2023, United received validation of our 2035 near-term emissions reduction target from the Science-Based Targets Initiative (SBTi) to reduce our carbon intensity 50% from a 2019 base year. This year, United became the first U.S. airline to show customers an estimate of each flight's carbon footprint in their search.
About United
At United, Good Leads The Way. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers and is now the largest airline in the world as measured by available seat miles. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".
1 Based on publicly announced airline offtake agreements for future purchases of SAF.
2 United derived these approximated figures based on an illustrative capital expenditure benchmark of $200,000 per barrel per day to build a SAF production facility. READ MORE
Excerpt from United Airlines/PR Newswire: Aircastle, Air New Zealand, Embraer, Google, HIS, Natixis CIB, Safran, and Technip Energies are now part of first-of-its-kind effort to reduce emissions and drive production of sustainable aviation fuel (SAF) by providing startups with both financial and strategic capital
United customers play a role too, with more than 115,000 people contributing nearly $500,000 since February 2023
United today (February 14, 2024) announced that Aircastle (a Marubeni & Mizuho Leasing Company), Air New Zealand, Embraer, Google, HIS, Natixis Corporate & Investment Banking, Safran Corporate Ventures, and Technip Energies are now among the 22 corporate partners that make up the airline's The United Airlines Ventures Sustainable Flight FundSM, a first-of-its kind effort to reduce emissions and drive production of sustainable aviation fuel (SAF) through investments in startups.
United Adds New Corporate Partners to Sustainable Flight Fund That Now Exceeds $200 Million
These corporate partners make up all parts of the aviation supply chain – airlines, aircraft and engine manufacturers, fuel producers, engineering and technology experts, financiers, travel management and more – and have now committed more than $200 million while collaborating to provide strategic expertise to help the Fund's portfolio companies reach commercialization.
Since its inception in February 2023, the Fund remains aviation's first and only venture fund backed by a broad limited partner base and created to identify and support startups advancing feedstock and technology development focused on increasing the supply of SAF.
The airline has included a way for everyday consumers to participate as well. Anyone using United.com or the United app has an option to contribute to supplement United's investment in the UAV Sustainable Flight FundSM before check-out. Users have the choice to contribute $1, $3.50 or $7.00.1 Continuing in the effort toward climate transparency for our customers, United also now shows an estimated carbon emissions for flights booked through United.com or the United app. In less than 12 months, more than 115,000 people have contributed nearly $500,000 since February 2023.
SAF is an alternative to conventional jet fuel that, on a lifecycle basis, reduces greenhouse gas (GHG) emissions associated with air travel compared to conventional jet fuel alone. To date, United has invested in the future production of over five billion gallons of SAF - the most of any airline in the world.2
"SAF is the best tool we have to decarbonize airplanes, but we don't have enough of it. To create the fuel supply we need for our fleet, United recognized that we would have to help build a brand-new industry from scratch – like wind and solar in previous decades," said Andrew Chang, Managing Director of United Airlines Ventures. "As part of our effort to build a new sustainable aviation ecosystem, we recruited a group of partners with the industry expertise to support our startups with both financial and strategic capital, to help them navigate the entire process from conception to commercialization."
Sustainable Flight Fund Milestones
- Added 22 corporate partners
- Raised more than $200 million in committed capital
- Portfolio company milestones:
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