IAG invests in Nova Pangaea to drive SAF production
The cleantech company is behind technology that is a crucial pathway to the production of sustainable aviation fuel (SAF).
Nova’s innovative technology converts agricultural waste 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, and the UK’s first of its kind.
Construction is expected to begin later this year with the facility producing biofuels by 2025.
Nova is one of several companies in the UK preparing to contribute towards the country’s domestic SAF production.
The UK’s SAF mandate requires at least 10% jet fuel to be made from sustainable feedstocks by 2030. This represents 1.2 million tonnes of fuel (1.5 billion litres).
Total global production of SAF in 2022 was estimated by IATA to be 450 million litres at a maximum (300-450 million litre range).
This means that total global supply would have to more than triple just to meet the UK's mandate. Facilities like the one Nova Pangaea Technologies is constructing in Teesside will be vital in meeting this demand.
IAG was the first European airline group to commit to the use of 10% SAF by 2030, and its intention to be net-zero by 2050.
Luis Gallego, IAG’s CEO, said: “Sustainable Aviation Fuel is the only realistic option for long haul airlines to decarbonise, which is why investment in this area is so critical.”
Sarah Ellerby, Chief Executive of Nova Pangaea Technologies, said: “This is a transformational milestone, and a real endorsement of the crucial work Nova Pangaea Technologies is doing. We are delighted to be adding IAG – one of the foremost names in the aviation industry - to our shareholder register.”