Today: Jun 14, 2024

JetFuel Startups bag $36M with United, JetBlue, Microsoft backing them.

6 months ago

– United Airlines, JetBlue, and Microsoft are among the investors backing three start-ups developing renewable aviation fuels, contributing $36.5 million toward their development.
– The backing recognizes the importance of sustainable fuel in mitigating the impact of aviation on climate change.
– Aviation giant United Airlines has committed to purchasing at least 300 million gallons of fuel from one of the startups, Dimensional Energy, over the next 20 years.

Renewable jet fuel startups Dimensional Energy, Aether Fuels, and Metafuels have attracted $36.5 million in funding from high-profile investors such as United Airlines, JetBlue and Microsoft. The companies are focusing on the transition toward sustainable aviation fuel (SAF), an essential part of reducing the industry’s carbon footprint.

New York-based Dimensional Energy specializes in a technology that can convert carbon dioxide emissions into aviation fuel, diesel fuel, and synthetic paraffin wax, a substance used in many everyday products. The startup recently raised $20 million in series A funding from a consortium, including Envisioning Partners, United Airlines’ Sustainable Flight Fund, Microsoft’s Climate Innovation Fund and others. United Airlines has also pledged to buy 300 million gallons of fuel from the company within 20 years, demonstrating a commitment to environmentally friendly alternatives.

Aether Fuels, headquartered in Chicago and Singapore, develops aviation fuel from biological material and captured CO2 emissions, raising $8.5 million in pre-series A funding through convertible notes. Another startup, Zurich-based Metafuels, has developed a sustainable aviation fuel, replacing standard kerosine without major design alteration to aircrafts or fuel infrastructure. The company attracted $8 million in seed funding from Energy Impact Partners and Contrarian Ventures. Metafuels hopes its product can fully replace jet fuel by 2030.

Despite skepticism surrounding the scalability and development of renewable jet fuels, these significant investments underscore the importance of sustainable alternatives in the path to reducing the aviation sector’s contribution to climate change.