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United Airlines Holdings Inc. Invests in Sustainable Aviation Fuel Technology

Last updated: May 06, 2025 •
Taurigo

1. A Strategic Move Towards Decarbonization

On May 6, 2025, United Airlines Holdings Inc. announced a significant investment in Twelve, a pioneering low carbon fuels company. This collaboration marks a crucial step in United's ongoing commitment to sustainability and reducing the carbon footprint of air travel. The investment comes from United Airlines Ventures Sustainable Flight Fund, a unique initiative aimed at supporting innovative technologies that contribute to the decarbonization of aviation.

2. Twelve's Innovative Technology

Twelve has developed a groundbreaking process that mimics photosynthesis to convert carbon dioxide (CO2) and water into sustainable aviation fuel (SAF) using renewable energy. This technology not only represents an advancement in fuel production but also holds the potential to significantly reduce lifecycle greenhouse gas emissions by up to 90% compared to traditional jet fuels.

The investment by United Airlines follows Twelve's recent completion of an $83 million Series C funding round, which will help finance the company’s first SAF production facility, named AirPlantā„¢ One, located in Moses Lake, Washington. This facility is set to begin operations later this year, with plans to produce 50,000 gallons of SAF annually.

3. Long-Term Supply Agreements

In conjunction with its technological advancements, Twelve has secured a long-term SAF purchase agreement with a major European airline, ensuring a steady demand for its innovative fuel. Under this 14-year contract, Twelve will supply 260 million gallons of SAF to support five airlines, emphasizing the growing need and market for sustainable aviation fuels.

Andrew Chang, head of United Airlines Ventures, highlighted the importance of scaling the SAF industry to increase supply while also lowering costs. ā€œScaling the SAF industry is the major hurdle air travel needs to clear in order to increase the supply and reduce the price of lower carbon fuels,ā€ Chang stated.

4. Collaboration and Future Goals

Nicholas Flanders, co-founder and CEO of Twelve, expressed optimism about the partnership with United Airlines. He noted that the investment would help propel Twelve's operations from the innovation phase to implementation. ā€œWith AirPlant One launching imminently and strong collaboration with United, we're not just envisioning the decarbonization of air travel—we're actively building it,ā€ Flanders remarked.

The collaboration with United Airlines is expected to foster a more sustainable aviation industry, aligning with broader climate goals and operational demands. Twelve’s innovative technology utilizes renewable energy to synthesize hydrocarbons, thereby reducing dependence on fossil fuels and contributing to a net-zero future.

5. United's Sustainable Flight Fund: A Collective Effort

The UAV Sustainable Flight Fund is a first-of-its-kind investment vehicle designed to support startups focused on decarbonizing air travel. This fund has garnered over $200 million in investment commitments from various corporate partners, including major players such as Boeing, Google, and American Express Global Business Travel.

This collaborative approach underscores the collective commitment of the aviation industry to address climate change and explore alternative fuel sources, paving the way for a more sustainable future.

6. Conclusion

United Airlines' investment in Twelve represents a strategic initiative to lead the aviation sector towards sustainability and innovation. With the expected launch of AirPlant One and the ongoing development of sustainable aviation fuels, United Airlines is not only positioning itself at the forefront of eco-friendly air travel but is also contributing to global efforts in combating climate change. As the aviation industry faces increasing pressure to reduce emissions, partnerships like these will play a critical role in shaping the future of air travel.

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