Amadeus has acquired a minority stake in Caphenia, an innovator in aviation fuel, for an undisclosed amount.
The Germany-based company is working to produce synthesis gas, the feedstock of sustainable aviation fuel (SAF).
The investment represents Amadeus’ first outside the software space and according to a statement is part of its “wider commitment to support the industry on its journey toward sustainable travel.”
The statement adds that the investment will give Amadeus visibility into the hurdles facing the SAF sector and enable it to “further explore the role it can play in this key element of the industry’s journey to net zero by 2050.”
Caphenia is working on producing synthesis gas from a mixture of biogas, CO2, water and electricity with the end goal being renewable fuels.
Mark Misselhorn, chief executive of the company, said: “Our process is affordable – using one-sixth of the electricity needed for alternative SAF production methods – and scalable. We have an ambition to offer large scale production by 2028, aiming to fill the gap between anticipated SAF demand and current supply.
“For airlines, sustainable aviation fuel is the practical long-term alternative to conventional aviation fuel. The technology of cost-effective, producible SAF means the greatest potential for CO2 savings and an important element that, in combination with others, may help in meeting net zero targets.”
Caphenia plans to commence production in 2024 with a goal of 10 million liters of SAF by 2027, increasing to more than 100 million liters by 2030 and more than 1 billion liters before 2035.
Amadeus points to the IATA Net Zero Emission initiative, which says that SAF could account for 65% of the reduction in greenhouse gas emissions needed for the aviation industry’s 2050 net zero goal.
That 65% reduction would require an estimated 449 billion liters annually, and in 2021 only 125 million liters were produced.
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Suzanna Chiu, head of ventures for Amadeus, said: “We are committed to supporting the move to sustainable travel. We monitor industry trends and developments to determine the most effective ways we can fulfill this ambition and are delighted to act today with the investment in an innovative SAF company. The transaction represents a step forward in our sustainability strategy, taking the perspective from a different part of the value chain in the industry. As the industry moves toward its goal of reaching net zero by 2050, we are taking concrete steps to accelerate the process.”
SAF production startups have attracted heightened investor interest recently with U.S.-based CleanJoule landing $50 million alongside agreements from Frontier Airlines, Wizz Air and Volaris to purchase up to 90 million gallons of SAF.
Last year Amadeus invested an undisclosed amount in Norway-based climate technology startup Chooose.