E-fuels startup Aether Fuels has secured a significant portion of its latest funding round, raising $30.4 million of a targeted $34.3 million, according to an SEC filing.
This new injection of capital follows an earlier $8.5 million convertible note round closed in late 2023.
Sustainable Fuel Solution for Aviation and Shipping
Aether Fuels focuses on producing sustainable fuel for the aviation and maritime shipping sectors by utilizing carbon dioxide and other waste carbon streams. This innovative approach aims to decarbonize these energy-intensive industries.
The startup originated from Xora Innovation, a deep-tech incubator backed by Temasek that focuses on early-stage ventures. While company representatives have not yet commented on the recent funding, Aether Fuels’ technology holds promise for transforming waste carbon into valuable fuel.
Diverse Waste Stream Utilization
Aether Fuels claims its technology can leverage carbon from various waste sources, including industrial emissions, landfill methane, and agricultural residues. This versatility could be a significant advantage in scaling up production and reducing reliance on fossil fuels.
While details of Aether Fuels’ carbon dioxide to fuel conversion process remain undisclosed, a January patent application suggests the exploration of a method involving natural gas.
This process involves gasifying solid waste, blending it with natural gas, and converting the mixture into liquid fuel while capturing any waste carbon dioxide generated. In February, the company announced a partnership with GTI Energy, a natural gas non-profit, to access their gas-to-liquid program.
Potential for Decarbonization
Airlines and maritime shipping companies are increasingly interested in bio-derived sustainable aviation fuel (SAF) and e-fuels as potential solutions to reduce their carbon footprint. While these efforts are still in their early stages, with SAF production currently representing less than 0.1% of total use, Aether Fuels’ technology could accelerate progress in this area and contribute to a more sustainable future for these industries.