IAG Invests In Sustainable Aviation Fuel Company Nova Pangaea Technologies

Benzinga ·  Jul 24, 2023 09:19

International Consolidated Airlines Group SA (OTC:ICAGY) announces investment into Nova Pangaea Technologies (NPT), a Teesside-based cleantech company. Financial terms not disclosed.

NPT technology develops advanced biofuels used to produce Sustainable Aviation Fuel from non-food agricultural waste and wood residues.

IAG's investment will accelerate the development of NPT's first commercial-scale waste-to-fuel production facility, NOVAONE. Construction is planned to begin later this year, with the facility producing biofuels by 2025, offering major opportunities for employment in the region.

The deal will make IAG a minority shareholder in Nova Pangaea, reported Bloomberg citing the companies.

IAG also intends to use NPT's technology to help the other airlines in its group decarbonize. The project is part of IAG's SAF investment program, which by the end of 2022 totaled $865 million in future SAF purchases and investments, with agreements in place for 250,000 tonnes of SAF.

Luis Gallego, IAG's CEO, commented, "At IAG, we have set a goal to use 10% 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."

Price Action: ICAGY shares closed higher by 0.51% at $3.95 on Friday.

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