United Sustainable Flight Fund Invests in Heirloom to Scale Direct Air Capture
Rhea-AI Summary
United Airlines (UAL) announced that its UAV Sustainable Flight Fund has invested in Heirloom, a direct air capture (DAC) company. The investment includes rights to purchase up to 500,000 tons of carbon dioxide removal for sustainable aviation fuel production or underground storage.
Heirloom's technology leverages limestone to capture CO2 directly from the air, representing a potentially cost-effective carbon reduction solution. This marks United's third carbon capture investment but first in DAC technology, supporting the airline's commitment to achieve net zero emissions by 2050.
The UAV Sustainable Flight Fund, with over $200 million in commitments from United and partners including Air Canada, Boeing, Google, and others, aims to support startups focused on aviation decarbonization.
Positive
- Secured rights to purchase 500,000 tons of carbon dioxide removal
- Third carbon capture investment, expanding decarbonization portfolio
- $200M+ committed to Sustainable Flight Fund with major corporate partners
- Investment in potentially low-cost carbon reduction technology
Negative
- Significant capital expenditure required for carbon capture initiatives
- Long-term timeline (2050) for achieving net zero emissions
News Market Reaction
On the day this news was published, UAL declined 1.22%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Sustainable Flight Fund also gets the right to purchase up to 500,000 tons of carbon dioxide removal
Heirloom's proven technology uses limestone to absorb CO2
Heirloom's already-proven and scalable technology accelerates the natural power of limestone to capture CO2 directly from the air – making it potentially one of the lowest cost pathways for removing carbon dioxide.
"Carbon capture is one of our country's fastest growing, energy enabling pathways," said Andrew Chang, head of United Airlines Ventures. "At UAV, our primary focus is finding solutions for decarbonization that are profitable. Heirloom's technology aligns directly with this objective, offering a scalable and commercially viable approach and complements United's commitment to net zero by 2050."
"We are incredibly proud to welcome the United Sustainable Flight Fund as an investor and to work with them to scale our DAC technology," said Shashank Samala, CEO of Heirloom. "By utilizing DAC as a dual-pronged tool that can both greatly reduce CO2 emission from aviation fuel and remove residual emissions, we are charting a true path to Net Zero aviation."
Heirloom marks United's third carbon capture investment but the first in a company commercializing direct air capture technology. DAC is one of two main forms of carbon capture utilization and storage, along with point source capture. Unlike point source capture which captures CO2 from a specific emitting source, like a power plant, DAC removes atmospheric CO2.
UAV Sustainable Flight Fund
The UAV Sustainable Flight FundSM is a first-of-its-kind investment vehicle designed to leverage support from cross-industry businesses in order to support start-ups focused on decarbonizing air travel. The fund is comprised of more than
About Heirloom
Since its founding in 2020, Heirloom has become one of the world's leading DAC companies. In 2023, Heirloom began operating
About United
At United, Good Leads The Way. With
United Forward-Looking Statements and Other Important Information
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 relating to, among other things, plans and projections regarding the company's environmental, social or governance (ESG) goals, targets, commitments, strategies and initiatives and related business and stakeholder impacts. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about our future financial results, plans, objectives, goals, targets, commitments, strategies and initiatives and involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond our control and could cause our future financial results, plans, objectives, goals, targets, commitments, strategies and initiatives to differ materially from those expressed in, or implied by, the statements. These risks, assumptions, uncertainties and other factors include, among others, any failure to meet stated ESG goals, targets, commitments, strategies and initiatives in the time frame expected or at all as a result of many factors, including changing societal, market, competitive, regulatory or stakeholder expectations; any delay or inability of United Airlines to realize the expected benefits of the investment; and any delay or failure of any technology to be fully developed or become functional or marketable or to serve the purpose for which it was designed. No forward-looking statement can be guaranteed. Forward-looking statements in this press release should be evaluated together with the many risks and uncertainties that affect United's business and market, particularly those identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections in United's Annual Report on Form 10-K for the year ended December 31, 2023, as updated by our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. Risks and uncertainties related to United's environmental compliance, climate commitments and climate strategy are further described in Part I, Item 1A. Risk Factors of United's Annual Report on Form 10-K for the fiscal year ended December 31, 2023— "We are subject to many forms of environmental regulation and liability as well as risks associated with climate change and may incur substantial costs as a result. In addition, failure to achieve or demonstrate progress towards our climate goals may expose us to liability and reputational harm."
The statements included in this press release are made only as of the date of this press release and except as otherwise required by applicable law or regulation, United Airlines undertakes no obligation to publicly update or revise any statement, whether as a result of new information, future events, changed circumstances or otherwise. In particular, United Airlines reserves the right to change, amend, supplement, or abandon some or all of the statements regarding goals, targets, commitments, strategies, initiatives, intentions and other statements from time to time without notice.
In addition, some of our disclosures in this press release are estimates or based on assumptions due to inherent measurement uncertainties.
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SOURCE United Airlines
FAQ
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