IAG SA, the parent company of British Airways, is buying a stake in a UK firm that’s planning to start production of sustainable aviation fuel by 2025. 

The carrier needs to secure SAF to meet its decarbonization goals, with as much as 10% of its fuel consumption to be derived from sustainable sources by 2030.

The investment is in Nova Pangaea Technologies Ltd., based in northeast England, which is seeking to make the cleaner aviation fuel from ethanol. Agricultural waste and wood residue will be used as feedstock. The company plans to produce the bioethanol, which will then be used by partner LanzaJet Inc. to create the sustainable fuel.

The deal will make IAG a minority shareholder in Nova Pangaea, the companies said, without disclosing financial terms.