British Airways owner IAG said it has invested in a green aviation fuel producer in the northeast as it accelerates plans to meet zero targets.
FTSE 100 IAG said it will invest in Nova Pangaea Technologies, which is building its headquarters at the Teesside Freeport.
Nova Pangaea is a UK start-up that converts waste products such as sawdust and leftover wood trimmings into feedstock to create sustainable aviation fuel (SAF).
SAF has a much lower carbon footprint than jet fuel, although production is currently very small scale, and the industry needs to scale up production rapidly so supply can match net-zero targets.
IAG is aiming for 10% of its flights to be powered by sustainable aviation fuel by 2030.
According to The Telegraph, IAG’s investment will help the start-up establish its first factory, with the airline set to become its first customer, although the size of the investment has not yet been disclosed.
“Sustainable Aviation Fuel is the only realistic option for long-haul airlines to decarbonise, which is why investment in this area is so critical,” said Luis Gallego, IAG’s CEO.
“We are not just buying SAF, we are willing to invest in developing the industry, but we need governments in the UK and Europe to act now to encourage further investment.”