CleanJoule, a US-based start-up focused on the production of sustainable aviation fuel (SAF), has announced a US$50 million ($67.57 million) investment round led by the principals of Indigo Partners, a US-based private equity firm.
The round also included participation by GenZero, Temasek’s decarbonisation-focused investment subsidiary; Cleanhill Partners, a US-based private equity firm focused on decarbonisation and three airlines: US-based Frontier Airlines, Europe-based Wizz Air and Mexico-based Volaris.
Funds raised from the round will support the further development of CleanJoule’s technology to produce high-performance SAF from agricultural residues and other waste biomass more cost-effectively, says the company in a May 31 press release.
SAF, a biofuel used to power commercial aircraft but with a smaller carbon footprint, could potentially contribute up to 65% of the reduction in emissions needed by the aviation sector to reach net zero in 2050, according to the International Air Transport Association.
As part of the consortium’s investment, Frontier Airlines, Wizz Air and Volaris have signed binding agreements to purchase up to 90 million gallons of SAF. The principals of Indigo Partners will also receive a board seat on CleanJoule’s Board of Directors.
Mukund Karanjikar, co-founder and chief executive officer of CleanJoule, says: “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 commercialisation 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. We are proud to have the support of our new investor partners, who not only share our mission but who have chosen to place their capital and trust in us to drive the transformation of global aviation.”
See also: Temasek launches investment subsidiary GenZero, focused on decarbonisation
Frederick Teo, chief executive officer of GenZero, says: “Decarbonising aviation requires solutions that can be adopted at scale. CleanJoule’s fuel technology relies on widely available feedstock — agricultural waste — to produce a sustainable biofuel that could be cost-effective at scale with better fuel economy. Its unique approach also allows for higher levels of substitution with conventional aviation fuel thus creating a greater decarbonisation impact. We are delighted to support CleanJoule to achieve greater adoption of SAF globally.”
Ash Upadhyaya and Rakesh Wilson, managing partners of Cleanhill Partners, say: “We’re excited to extend our partnership with CleanJoule. As one of CleanJoule’s earliest investors, we recognised the high value of the company's technology and the viability of its approach. We look forward to the next steps towards accelerating the commercialisation of its SAF technology.”
In July 2022, GenZero joined Singapore Airlines and the Civil Aviation Authority of Singapore to announce the next phase of a pilot to deliver blended SAF to Changi Airport via the airport’s fuel hydrant system.
See also: Temasek’s GenZero co-leads US$15 mil round into SaaS climate tech firm Chooose
Under this pilot, 1,000 tonnes of neat SAF were supplied by Finnish energy giant Neste and blended with refined jet fuel at ExxonMobil’s facilities in Singapore. SIA and Scoot flights have been using this blend since, and the pilot will be complete in the coming months.
Neste officially opened its expanded Singapore refinery on May 17, and the company claims it can now produce up to a million tonnes of SAF here each year. With the EUR1.65 billion ($2.40 billion) expansion, Neste’s 45 ha refinery in Tuas South boasts an annual production capacity of 2.6 million tonnes.
