British Airways owner invests £4.4m into cleantech company Nova Pangaea Technologies

NPT’s technology converts agricultural waste and wood residue feedstocks into second-generation bioethanol, which can then be processed into sustainable aviation fuel (SAF).

NPT said the £4.4m investment will progress the development of NOVAONE, NPTs first waste-to-fuel commercial-scale production facility.

Construction is expected to begin later this year, with the facility producing biofuels by 2025, creating major employment opportunities.

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 per cent jet fuel to be made from sustainable feedstocks by 2030. This 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).

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, NPT added.

Luis Gallego, IAG’s chief executive, said: “Sustainable aviation fuel is the only realistic option for long haul airlines to decarbonise, which is why investment in this area is so critical.

"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.”

Sarah Ellerby, chief executive of Nova Pangaea Technologies, added:

“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.