|
Listen to this story:
|
- BlackRock, Block, Ripple, and Samsara have joined the Sustainable Aviation Buyers Alliance (SABA) to fund $200 million in sustainable aviation fuel (SAF) deals, supplying 50 million gallons to Alaska Airlines.
- The initiative will offset 500,000 tons of CO2 over five years, supporting SAF’s 80% carbon reduction potential compared to conventional jet fuel.
- SAF certificates (SAFc) enable companies to reduce Scope 3 emissions while helping airlines scale sustainable fuel use.
Some of the world’s biggest companies, including BlackRock Inc., Block Inc., Ripple, and Samsara Inc., are driving decarbonization in aviation through a $200 million investment in sustainable aviation fuel (SAF). Coordinated by the Sustainable Aviation Buyers Alliance (SABA) and facilitated by Watershed, the funding will supply 50 million gallons of SAF for Alaska Airlines, significantly offsetting emissions from business travel.
Transforming Aviation’s Emissions Profile
Aviation contributes 2% of global emissions and remains challenging to decarbonize. SAF, produced from renewable or waste feedstocks, offers an 80% reduction in carbon intensity compared to traditional jet fuel. Unlike alternative technologies like hydrogen or electric planes, SAF is compatible with existing aircraft and infrastructure, making it the most viable near-term solution.
“We see collective engagement in the SAF market as a compelling demand signal,” said Claire Kiely, Head of Marketplace Carbon Supply at Watershed. “By participating in this historic investment, Watershed customers are providing a powerful demand signal for SAF and affirming the role SAFc will play in corporate emissions reduction initiatives.”
Related Article: California, A4A Partner to Supply 200 Million Gallons of Sustainable Aviation Fuel by 2035
Scaling Sustainable Fuel Production
SAF certificates (SAFc) allow companies to purchase credits that align with their Scope 3 emissions reduction goals. Airlines, such as Alaska Airlines, use the funds to scale SAF production, which remains costly and accounts for less than 0.5% of global jet fuel supply.
Diana Birkett Rakow, Senior Vice President of Public Affairs and Sustainability at Alaska Airlines, highlighted the collaborative impact:
“We are one of the founding members of SABA’s Aviators group because we know that we will only reach our destination if we’re tackling this challenge from all angles – business, policy, financing, and more. Investing in SAF alongside partners like Watershed, BlackRock, Ripple, Samsara, and Block helps us scale up use and provides critical demand signals for the market.”
Building the Future of SAF
The initiative supports SAF producers, such as Montana Renewables, whose fuel is derived from fats, oils, and grease. These agreements provide critical financing for SAF facilities, which can take a decade or more to build.
This landmark investment aligns with SABA’s vision of decarbonizing aviation and setting a precedent for sustainable business practices. By leveraging demand signals and collective efforts, companies are driving transformative changes in one of the most carbon-intensive industries.
Follow ESG News on LinkedIn