Cutting Aircraft Emissions with eFuels: The New Frontier in Clean Aviation

In the fight against climate change, reducing emissions from aircraft remains one of the toughest challenges. However, a wave of investment in startups developing synthetic jet fuels, known as eFuels, is offering a promising solution. Among these innovators is Twelve, which recently secured $645 million in funding from firms such as TPG and Alaska Airlines, marking one of the largest investments in clean jet fuel to date. This blog explores the potential of eFuels in transforming the aviation industry, highlighting key players, challenges, and the future of sustainable air travel.

A New Era of Jet Fuel

Twelve is leading the charge in creating eFuels, which are synthetic fuels produced using carbon dioxide, water, and renewable electricity. These innovative fuels can offer up to 90% lower emissions compared to traditional fossil-based jet fuels, representing a significant leap forward in reducing the carbon footprint of air travel.

The technology behind eFuels mimics photosynthesis, the natural process used by plants to convert sunlight into energy. In the case of Twelve, the process involves using renewable electricity to power electrolyzers—devices that combine CO2 and water to generate synthetic gas, which is then processed into jet fuel. While biofuels made from organic materials have been part of the solution, their scalability is limited by the availability of feedstock and land, making synthetic eFuels a more viable long-term option.

A Surge of Investment in Clean Fuels

Twelve is not alone in capturing the attention of major investors. Recently, Brookfield Asset Management committed over $200 million to Infinium, another company focused on sustainable fuel production. Brookfield has indicated it may invest up to $850 million in the startup in the future. Other key players in the space include Prometheus Fuels, valued at $1 billion after securing a deal with American Airlines, and HIF Global, another unicorn in the clean fuels race.

The influx of investment dollars into these companies highlights a broader shift in the energy landscape. Investors are betting big on companies that can use chemistry and renewable power to transform carbon dioxide and water into limitless energy. Known as power-to-liquids technologies, these innovations are attracting attention from major airlines, energy companies, and venture capitalists.

Why Investors Are Betting on eFuels

As the aviation industry seeks more sustainable options, biofuels—currently made from fats, oils, greases, and even waste—present an immediate solution. However, their supply will likely be constrained over time due to limited resources. This is where eFuels come in, offering the potential for large-scale production without the need for vast amounts of feedstock.

“We’re trying to move as quickly as we can to bring supply to the market,” said Nicholas Flanders, co-founder and CEO of Twelve. The company has already signed agreements with Alaska Airlines and European carriers like British Airways to supply this next-generation fuel.

Despite the promise of this technology, significant hurdles remain. Twelve’s first plant, set to begin operations next year in Moses Lake, Washington, will produce just 50,000 gallons annually—a drop in the ocean compared to the aviation industry's annual consumption of 100 billion gallons of jet fuel. While this production is only a small start, it signals the beginning of what could become a game-changing industry.

Key Players and Industry Support

In addition to Twelve, other startups such as LanzaJet—backed by Southwest Airlines—are also making waves in the clean jet fuel space. The demand for these fuels is so high that TPG has already committed $400 million toward building future Twelve plants, a move that complements the company's recent $200 million fundraising round.

Twelve’s founding team has deep academic roots. Flanders co-founded the company in 2015 at Stanford University’s business school alongside two PhD candidates in mechanical engineering and chemistry. The company’s name, Twelve, reflects the abundance of the isotope carbon-12, a key element in its fuel production process.

The Challenges Ahead

While Twelve’s technology offers promise, the path to scaling clean fuels is fraught with challenges. Supply-chain bottlenecks and construction delays have already slowed progress at its initial plant, a situation compounded by rising costs across the industry. Government support is proving critical. Subsidies from the 2022 climate law, along with state incentives, are helping to close the cost gap between synthetic and traditional fuels.

One of the most pressing challenges for eFuel startups is securing sufficient green power. Twelve’s Moses Lake project is powered by hydropower, which gives it a competitive edge over rivals. Access to affordable renewable electricity will be key in determining where Twelve locates its future plants, Flanders explained.

The Future of Clean Jet Fuels

The rush of investments into companies like Twelve, Prometheus, and HIF signals that investors are banking on eFuels as a critical component of the energy transition. While there is still a long way to go before these synthetic fuels can meaningfully dent global jet fuel consumption, the groundwork is being laid for a more sustainable future in aviation.

As investors continue to pour capital into this space, it’s clear that the race to decarbonize the skies is just beginning. Whether eFuels will eventually replace fossil fuels entirely remains to be seen, but they certainly offer a promising path forward in the fight against climate change.

Conclusion

Cutting emissions from aircraft is a formidable challenge, but the rise of eFuels offers hope for a more sustainable future in aviation. With companies like Twelve leading the charge and significant investments pouring into the sector, the potential for eFuels to transform air travel is becoming increasingly clear. While hurdles remain, the progress made so far is encouraging, and the continued support from investors, governments, and industry players will be crucial in overcoming these challenges.

For eco-conscious travelers, aviation industry professionals, environmental activists, and investors in clean energy, the development of eFuels represents a pivotal moment in the energy transition. As we look to the future, the role of synthetic jet fuels in reducing carbon emissions and creating a more sustainable world cannot be overstated.

To stay informed and get involved in this exciting movement, consider signing up for updates from leading eFuel companies, supporting policy initiatives that promote clean energy, and spreading the word about the benefits of synthetic fuels. Together, we can help build a cleaner, greener future for aviation and beyond.

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This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.