International Airlines Group announces investment in Nova Pangaea Technologies

London-based International Airlines Group (IAG) has announced its investment in Nova Pangaea Technologies (NPT), Teesside, United Kingdom, a cleantech company to further the production of sustainable aviation fuel (SAF).  NPT’s technology converts agricultural debris and wood residue feedstocks into second-generation bioethanol, which can then be processed into SAF.   

IAG’s investment will progress the development of Novaone, NPTs first waste-to-fuel commercial-scale production facility. Construction is expected to begin later this year, with the facility producing biofuels by 2025, creating local employment opportunities, IAG says.   

NPT is one of several companies in the U.K. preparing to contribute to the country’s domestic SAF production, which would help the industry decarbonize. The U.K.’s SAF mandate requires at least 10 percent of jet fuel be made from sustainable feedstocks by 2030. This represents approximately 1.3 million tons of fuel. Total global production of SAF in 2022 was estimated by The International Air Transport Association (IATA) to be approximately 118 million gallons at a maximum range of 79-118 million gallons. Global supply would have to more than triple to meet the U.K.’s mandate and the Novaone facility could be valuable in meeting this demand, IAG says. 

IAG also plans to harness NPT’s technology to support the decarbonization of the other airlines in its group: Aer Lingus, British Airways, Iberia, Vueling and Level. The project is part of IAG’s SAF investment program, which, based on assumed energy prices, amounted to $865 million in future SAF purchases and investments at the end of 2022, with agreements in place for 275,000 tons of SAF, 25 percent closer to its target of 1.3 million tons by 2030. This comes as IAG seeks to secure further U.K. SAF supply ahead of the introduction of the government’s SAF mandate, which is expected to be introduced in 2025.  

“Sustainable aviation fuel is the only realistic option for long-haul airlines to decarbonize, which is why investment in this area is so critical,” IAG CEO Luis Gallego says. “At IAG, we have set a goal to use 10 percent SAF by 2030. And we are not just buying SAF, we are willing to invest in developing the industry, but we need governments in the U.K. and Europe to act now to encourage further investment.”  

“This is a transformational milestone and a real endorsement of the crucial work Nova Pangaea Technologies is doing,” Sarah Ellerby, chief executive of NPT says. “We are delighted to be adding IAG, one of the foremost names in the aviation industry, to our shareholder register. Our facility will be the U.K.’s first commercial plant of its kind, and it will play a crucial role in decarbonizing the aviation sector as well as providing local employment opportunities. We are confident of beginning construction later this year and producing second-generation biofuels by 2025.”