CleanJoule, a startup specializing in sustainable aviation fuel (SAF), has successfully raised $50 million in funding. The proceeds will be utilized to support the company’s efforts in developing technology that can produce SAF in a more cost-effective manner.
The funding round involved the participation of three airlines: Frontier Airlines, Wizz Air, and Volaris. These airlines have committed to purchasing up to 90 million gallons of SAF as part of their investment.
CleanJoule, established in 2009 and based in Utah, has created a proprietary process for manufacturing SAF, as well as renewable bio-polymer for consumer and commercial products using biomass like agricultural residues. The company claims that its SAF solution offers several advantages, including up to 10% higher energy density compared to competitors, and it doesn’t require blending with petroleum jet fuel.
SAF is considered a crucial tool in the decarbonization of the aviation industry, which currently contributes 2-3% of global greenhouse gas (GHG) emissions. SAF is typically produced from sustainable resources such as waste oils and agricultural residues, resulting in significant reductions in emissions compared to fossil-based jet fuels.
The demand for SAF is expected to surge in the coming years as airlines prioritize this technology to achieve their climate targets, and governments implement regulations mandating increased SAF usage to meet their decarbonization goals. Recently, the European Parliament and EU Council reached an agreement on new rules that require a minimum SAF share of fuel at EU airports, reaching 70% by 2050.
The funding round was led by the principals of private equity firm Indigo Partners and involved participation from GenZero and Cleanhill Partners, in addition to the airlines.
Dr. Mukund Karanjikar, co-founder and chief executive officer of CleanJoule, said:
“The aviation industry presents a key frontier in carbon emissions mitigation. There has never been a more crucial time for us to lead the change than through viable sustainable fuel alternatives. As we advance on the commercialization of our fuel technology, CleanJoule is well-positioned to scale the supply of SAFs in the market and shorten the runway in the transition towards a greener aviation industry.”
Bill Franke, managing partner of Indigo Partners, said:
“Indigo Partners and its portfolio airlines are committed to decarbonizing air transportation, and the investment in CleanJoule will increase the supply of SAF to the industry. The company has developed a unique technology to convert abundantly available feedstocks into SAF with remarkable efficiency.”