A new Australian venture capital firm is to manage a sustainable aviation fuel-focused investment fund for Qantas (ASX: QAN) and the manufacturer of most of its aircraft, France-based Airbus.
Qantas and Airbus have jointly committed $15 million to the fund to be managed by Sydney and Melbourne firm Climate Tech Partners.
The fund will focus on innovations in the production of sustainable aviation fuel (SAF) but will also invest in other technologies which will help decarbonise the aviation sector. The fund will mainly invest in Australia but will have capacity to invest globally.
According to a joint announcement by Qantas and Airbus on April 7, the new fund will offer early-stage technology companies mentorship and strategic support as well as investment capital.
Qantas chief sustainability officer Fiona Messent said: “Sustainable aviation fuel is the most effective tool we have to decarbonise aviation and, with Airbus, we’re investing significantly in ways to make it more available and accessible.
“As well as funding, this partnership will help provide a vote of confidence in new technologies so they can be developed, scaled and integrated into the SAF supply chain while also providing companies with access to Qantas and Airbus as they develop and test their solutions.”
The investment capital will be drawn from the 2022-established $US200 million ($318 million) Qantas-Airbus SAF partnership fund.
“For Australia, an onshore SAF industry will mean improved national fuel security, more jobs and economic benefit, so it’s fantastic to be collaborating across industries to accelerate local production,” Messent added.
Airbus chief sustainability officer Julie Kitcher said: “Decarbonising aviation at speed and scale requires bold action and collaboration across sectors; from airlines, manufactures and airports to regulators, governments and investors.”
She said she believed Australia was well positioned to be a leader in low carbon fuels and investment in the sector could generate new jobs.
Co-founder of Climate Tech Partners Patrick Sieb said: “Working with global leading aviation and aerospace companies allows us to not only make more deeply informed investment decisions in this complex area but attract and support the best companies by helping them accelerate through industry engagement.”
Sydney and Melbourne firm Climate Tech Partners was set up Sieb and Tom Kline last year. The pair previously raised a Climate Tech Fund for Investible. They launched fundraising for Climate Tech Partners’ main fund early this year and have attracted initial commitments, including from Daniel Besen’s family office.
According to Sieb and Kline, Climate Tech Partners Fund I is close to achieving a first close above $45 million. The fund will invest primarily at Series A stage across the energy and power, transport and logistics and industrials and resources sectors.
Image: Qantas is committed to reducing the carbon emissions of its operations.