Aether Fuels, a global advanced climate technology company, announced it has secured $34 million in Series A funding from a syndicate of global investors.
The round was led by AP Ventures, with participation from Chevron Technology Ventures, CDP Venture Capital and Zeon Ventures, the company said in a statement last Friday.
Series Seed lead investor Xora Innovation also participated, along with other existing investors TechEnergy Ventures, Doral Energy-Tech Ventures, Foothill Ventures and JetBlue Ventures.
Aether Fuels was founded in 2022 as a spin-out from Xora Innovation, Temasek’s deep tech early-stage investment platform.
Aether plans to use the funding to accelerate the scaling of Aether Aurora™, its proprietary technology for producing sustainable fuels for the aviation and shipping industries.
Leveraging technology licensed from Aether’s strategic partner, GTI Energy, Aether Aurora combines innovations in chemistry (catalyst), equipment (reactor) and process flow to deliver breakthrough economics through a transformed Fischer-Tropsch (FT) process, significantly reducing plant capital and operational costs while improving yields.
It is also highly flexible, able to convert abundant waste carbon feedstocks into jet fuel and other liquid hydrocarbons, overcoming supply constraints faced by many other sustainable aviation fuel (SAF) production processes.
Aether will use the new funds to further expand its research and development (R&D) infrastructure, scale new catalyst and process technologies, and expand and accelerate the construction of a fully integrated 100 gpd test production plant building on the successful operation of its existing 1.5 gpd pilot line.
Additionally, the Company intends to work with select strategic partners to begin developing a pipeline of commercial-scale production facilities, including projects in the United States and Southeast Asia, to produce SAF and other high-value sustainable liquid fuels.
To facilitate this effort, Aether and GTI Energy have partnered to establish the Aether R&D Center on GTI Energy’s Chicago-area campus, which is home to an existing 1.5 gpd line and a 100 gpd plant under construction.
The partnership began in 2022 with the aim of building on the gas-to-liquids (GTL) technology program that GTI Energy launched in 2016.
The Aether Aurora solution leverages key innovations in the GTL program.
Aether Aurora is designed from the ground up with feedstock flexibility in mind, making it suitable for e-fuels, biofuels and recycled carbon fuel projects.
Such projects can efficiently consume captured carbon dioxide, industrial waste gases, biogas, and processed agricultural residues.
This adaptability combined with cost-effectiveness establishes Aether Aurora as a highly differentiated solution.
“This is a group of financial and strategic leaders who clearly see the need to expand the supply of sustainable fuels.
“But without a significant expansion of fuel production capacity, supply will remain severely constrained and the transition will be slow, if not impossible,” Aether CEO Conor Madigan said.
“This is precisely the problem we address with disruptive, scalable solutions spanning innovative chemistry, equipment and process flows to enable maximum carbon flexibility while simplifying the conversion process.
“As a result, we can produce more product at significantly lower capital investment costs than existing approaches,” he added.
He also said the decision from investors with deep industry knowledge and experience demonstrates their support for Aether’s unique approach.
“We look forward to continuing to leverage their expertise in the future,” he said.
Meanwhile, AP Ventures’ Kevin Eggers said Aether stands out with its elegant and innovative technology approach that delivers superior economics.
Aether noted that it has assembled a stellar team of energy experts, business leaders and serial entrepreneurs.
“Their differentiated go-to-market strategy and disciplined execution are built on a combined track record of building tens of billions of dollars’ worth of energy and fuel projects.
“Aether is progressing rapidly and we are pleased to support their growth,” he added.
Aether Fuels envisions a net-zero world enabled by breakthrough sustainable liquid fuel production technology.
The company develops scalable solutions that improve unit economics in the production of sustainable fuels for aviation and maritime transportation.
The company has its main operations in the United States and Singapore.
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