Mercia Asset Management PLC (AIM:MERC) said a company in its direct portfolio, Nova Pangaea has received investment from International Consolidated Airlines Group SA (IAG) as part of the British Airways owner’s commitment to having 10% of its jet fuel being Sustainable Aviation Fuel (SAF) by 2030.
SAF can reduce carbon emissions by up to 80% over the fuel’s lifecycle. IAG is the first European airline group to commit to this target.
Nova Pangaea is a cleantech business developing technology that converts woody and agricultural residues into high-value sustainable products that are used to manufacture SAF and a range of biochemicals.
IAG's investment will support the development of Nova Pangaea's first commercial-scale production facility.
Mark Payton, chief executive of Mercia, said: "This is a terrific endorsement for the exciting potential of Nova Pangaea's technology.
"Nova Pangaea's factory will be the first of its kind in the UK, and we are proud to be invested in a company that is not only helping the transition to a more sustainable aviation industry, but also creating new employment opportunities in the North-East."
Mercia's direct investment into Nova Pangaea was part of a £5.3mln funding round in October 2022, alongside Mercia's Northern Powerhouse Investment Fund and other co-investors.