Sustainable jet fuel maker CleanJoule raises $50 million
CleanJoule, a Salt Lake City-based developer of sustainable aviation fuels developed from agricultural residues and other waste biomass, raised $50 million from an investor group that included three airlines.
Why it matters: This reflects a growing aerospace sector belief that sustainable aviation fuels could become competitive with crude oil-based fuels, or at least part of a standard blend, in terms of both cost and performance.
- Plus government incentives in the U.S. and Europe.
Details: Indigo Partners led the round, and was joined by Temasek's GenZero and existing backer Cleanhill Partners.
- Also participating were Frontier Airlines, Wizz Air and Volaris — a consortium that also agreed to buy up to 90 million gallons of CleanJoule SAF.
More, per The NY Times: "While advances have been made in electric planes, battery weight remains a problem for large aircraft. Sustainable jet fuel is seen by many as the most promising way to reduce greenhouse gas emissions in the aviation sector, which contributes more than 2% to global emissions each year."