The Million-Dollar Opportunity in Sustainable Aviation Fuel

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Sustainable aviation fuel (SAF), a cleaner way to power aircrafts, is the hottest commodity as of late. 

Companies that produce clean jet fuel are raising massive rounds across stages: 

• Twelve: $200m in Series C
• Air Company: $69m in Series B
• Aether Fuel: $34m in Series A

Source: Google Trends, six-month rolling average

The producers mentioned above convert waste carbon in the air (usually in the form of CO₂) into jet fuel. But there are a lot more ways to make SAF, from corn to fats to algae. 

“We will start to see more and more SAF, growing exponentially over the next five, 10, 20 years using all different feedstocks and technologies,” said Nancy Bsales, COO of 4AIR, a sustainable aviation company. 

Money’s pouring in from both private and public sectors: 

• Major commercial airlines like United, Virgin and American are all backing early stage SAF producers. 
• The Biden-Harris administration invested ~$300m in SAF grants, hoping to reach the 100% SAF goal in 2050 (we’re at 1% now). 

So how can you get in on this trend with sky-high stakes? Here are some ideas to get your gears turning: 

Source: Federal Aviation Administration

1. Focus on The Supply Chain 

Many steps are involved in making SAF, and you can come in at different stages to find market gaps.

🌾 Sourcing: Become a clean energy broker who collects waste from feedstock suppliers (farms, waste management companies, restaurants, etc.), and sells them to SAF production facilities. 

You can also monetize the data — do some research and build a comprehensive database of suppliers, their feed types and production capacities, then charge SAF makers a fee to gain access to the data. 

Source: Trellis Group

🚚 Logistics: Develop software to improve the SAF supply chain, like optimizing routes, monitoring (and reducing) emissions during transport, etc. We could also see blockchain-based applications that record end-to-end SAF production, distribution and transactions. 

📜 Compliance: Regulations around SAF are constantly changing, so you can become an SAF compliance expert who helps companies acquire certifications and stay compliant. 

2. Sustainable Business Travel Software

Zooming out from the energy side, we see an opportunity to focus on the growing consumer concern about air travel’s environmental impact.  

Flyers gotta fly. That’s not gonna change. But you can build a ticket booking platform that helps travelers — especially business ones — book more sustainable flights. 

Business travel booking platforms are attracting major capital. Engine raised $140m at a valuation of $2.1B. BizAway cleared $39m. 

Partner up with companies with frequent travel needs. Offer incentives like turning their carbon offset credits into future miles. You can even tag on a corporate carbon credit card (try saying that 2x fast).

The impact of individual travelers might be small, but those willing to make a change represent a sizable market you can tap into. 

Source: Sustainability by Numbers

3. Consumer Products

Speaking of carbon credit cards… 

Using ESG data, you could produce a host of products — budgeting apps, credit cards, product marketplaces — to help consumers take actions on environmental causes they care about. 

Doconomy is a fintech company that helps people manage their money better based on environmental impact. It raised $37m+ earlier this year from investors like S&P Global. 

Similarly, you could build a niche fintech app that educates people on the significance of SAF, coupled with an AI advisor that helps them invest in emerging SAF projects or companies.

You can also design and sell sustainable travel gear, like luggage made from recycled materials, reusable travel containers for toiletries, or even eco-friendly beddings for hotels. 

If you lack experience or connections in the aviation or energy space, influencing the industry at a fundamental level is hard. But every bit helps — these consumer products could be a way to break into the conversation.

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