IAG invests in Teesside cleantech company

NPT’s 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.

“This is a transformational milestone, and a real endorsement of the crucial work Nova Pangaea Technologies is doing,” Sarah Ellerby, chief executive of Nova Pangaea Technologies, said in a statement. “Our facility will be the UK’s first commercial plant of its kind, and it will play a crucial role in decarbonising the aviation sector, as well as providing local employment opportunities. We are confident of beginning construction later this year and producing second-generation biofuels by 2025.” 

According to IAG, the UK’s SAF mandate requires at least 10 per cent jet fuel to be made from sustainable feedstocks by 2030, which 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).

IAG, parent company of Aer Lingus, British Airways, Iberia, Vueling and LEVEL, also plans to harness NPT’s technology to support the decarbonisation of its airlines. The project is part of IAG’s investment programme in SAF, which at the end of 2022 amounted to $865m in future SAF purchases and investments, with agreements in place for 250,000 tonnes of SAF, which is quarter of the way to its target of one million tonnes by 2030. IAG said it is looking 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.

“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. “At IAG, we have set a goal to use 10 per cent SAF by 2030.  And 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.”