The $100 million fund, backed by other big businesses, was accelerated by U.S. climate law
United Airlines has been one of the most aggressive airlines in acting on climate change.
United Airlines Holdings Inc. red down pointing triangle is launching a fund backed by several big-name aerospace and financial companies to invest in startups aiming to produce sustainable aviation fuel, in one of the largest efforts yet to lower emissions from air travel.
Created through United’s venture investing arm, the new fund will start with more than $100 million from the company and partners including Air Canada ; red down pointing triangle, Boeing Co., green up pointing triangle JPMorgan Chase & Co., Honeywell International Inc. red down pointing triangle and General Electric Co., decrease; red down pointing triangle United said Tuesday.
Last year’s climate law spurred United to accelerate the fund, which will be capped at $500 million, the company said.
United, Air Canada and other airlines that participate are expected to sign clean-fuel supply agreements with the startups they back. Companies that invest alongside United could share in the carbon credits tied to the production of that sustainable aviation fuel, the company said.
The new fund will be one of the largest sources of cash in the nascent industry of making low-carbon jet fuel. Its launch highlights the pressure faced by the airline industry to reduce emissions. It is part of a recent move by large companies toward startup investing to develop green-energy technologies.
Excerpt from WSJ
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