United Airlines (UAL) has made a $5 million investment in a technology company that is hoping to turn algae into jet fuel, The Hill reported.
United announced the investment in the biofuel company Viridos that specializes in bioengineering microalgae into algae oil, which could produce sustainable aviation fuel (SAF).
SAF is made from used cooking oil or agricultural waste, but scientists hope it can eventually be made from such things as household trash, forest waste or, in the case of Viridos, algae, The Hill noted.
Viridos identifies itself as a leader in bioengineering microalgae and says its algae have already achieved seven times the oil productivity compared to wild algae.
“Based on current estimates, SAF created by Viridos' algae oil is expected to have a 70% reduced carbon footprint on a life cycle basis when compared to traditional jet fuel,” United announced.
Viridos and United say algae is an abundant resource that can be grown and harvested without impacting the food supply chain. As United seeks to reduce its carbon footprint from flying, its biggest hurdle is a shortage of feedstock needed to produce SAF.
The airline wants to be a 100% green company by 2050 and has started a venture fund to identify and invest in technology to achieve that goal.
Viridos is the first venture of The UAV fund, which started with $100 million in capital from United and its partners, including Air Canada, Boeing and GE Aerospace. Travelers also contribute when purchasing tickets, the airline said.
Oliver Fetzer, CEO of Viridos, said creating production sites to grow the company's microalgae in saltwater will help create “the foundation for a biofuel future that moves away from fossil fuels without competing for precious resources such as fresh water and arable land.”
“We are excited to have the support from United Airlines,” Fetzer said. “Together we can build the ecosystem needed to bring algae biofuels to the market.”
SAF must be blended with conventional jet fuel to meet regulatory requirements for use in aircraft, United said, and the U.S. military plans to use jet fuel with at least 10% SAF by 2028.
United says the Biden administration's 2022 Inflation Reduction Act includes a tax credit specifically for SAF.
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