International Airlines Group invests in Nova Pangaea Technologies

In the UK, International Airlines Group (IAG), the parent company of Aer Lingus, British Airways, Iberia, Vueling and LEVEL —has announced an investment into Nova Pangaea Technologies (NPT), an innovative Teesside-based cleantech company whose technology is a crucial pathway to the production of Sustainable Aviation Fuel (SAF).

NPT’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, creating major employment opportunities in the North-East.

NPT is one of several companies in the UK preparing to contribute towards the country’s domestic SAF production, which would help the industry decarbonise. The UK’s SAF mandate requires at least 10% jet fuel to be made from sustainable feedstocks by 2030. This represents 1.2 million metric tons of fuel (1.5 billion liters). Total global production of SAF in 2022 was estimated by IATA to be 450 million liters 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 also plans to harness NPT’s technology to support the decarbonisation of the other airlines in its group. The project is part of IAG’s investment programme in SAF, which at the end of 2022 amounted to $865 million in future SAF purchases and investments (based on assumed energy prices), with agreements in place for 250,000 tons of SAF, 25% towards its target of one million tons by 2030. This comes as IAG seeks to secure further UK SAF supply ahead of the introduction of the UK Government’s SAF mandate, which is expected to be introduced from 2025.