Key Takeaways
- Turkish Airlines has signed an agreement to participate in SAFFA Fund I, LP, an investment fund managed by Burnham Sterling Asset Management LLC (BSAM) that backs sustainable aviation fuel (SAF) production.
- SAFFA Fund was established in December 2023 and invests in SAF projects that have reached technological maturity across a mix of production technologies and geographies.
- Airbus serves as the fund's anchor investor, with other participants including Air France-KLM Group, Associated Energy Group, BNP Paribas, CMA-CGM, Mitsubishi HC Capital, and Qantas Airways.
- The eight partners' combined commitment to SAFFA Fund totals roughly $208 million.
- Turkish Airlines said the investment supports its supply chain security goals by giving it earlier access to SAF feedstock development and production technology.
Turkish Airlines Signs On to SAFFA Fund
Turkish Airlines has signed an agreement to participate in SAFFA Fund I, LP, an investment fund managed by Burnham Sterling Asset Management LLC that aims to accelerate the production of sustainable aviation fuel. The airline said the move aligns with its long-term growth strategy, sustainability targets, and supply chain security plans.
How SAFFA Fund Is Structured
SAFFA Fund was established in December 2023 to increase SAF production capacity and support the aviation sector's carbon reduction targets. The fund invests in SAF projects that have already reached technological maturity, spreading its capital across a mix of production technologies and geographic regions rather than concentrating on a single approach.
Airbus and Global Carriers Among the Backers
Airbus serves as SAFFA Fund's anchor investor, and the fund's participants include Air France-KLM Group, Associated Energy Group, BNP Paribas, Burnham Sterling, CMA-CGM, Mitsubishi HC Capital, and Qantas Airways. Together, the eight partners have committed roughly $208 million to the fund.
“With this investment in the SAFFA Fund we aim not only to contribute to the development of the sustainable aviation fuel ecosystem but also to maintain our active role in supporting innovative projects that shape the future of the industry,” said Levent Konukcu, deputy general manager of Turkish Airlines.
What the Deal Means for Turkish Airlines
Turkish Airlines said its participation gives it earlier access to investment, feedstock development, and technology projects shaping the future of the SAF sector, reinforcing its supply security and sustainable growth targets. Burnham Sterling framed the airline's involvement as a sign of confidence in SAF as an investment category.
“SAFFA Fund was built to channel capital into SAF projects across a mix of investments and geographies. Turkish Airlines' investment adds scale to that strategy and evidences the confidence the Fund's participants have in this asset class,” said Michael Dickey Morgan, Executive Managing Director of Burnham Sterling Asset Management LLC.
