The Salt Lake City-based tech start-up CleanJoule has acquired $50 million in funding to develop sustainable jet fuel.
The funding round was overseen by Indigo Partners, with support from GenZero, Cleanhill Partners, Frontier Airlines, Wizz Air, and Volaris. Indigo Partners is also controlling stakeholder for Frontier and has stakes in Wizz Air and Volaris. Per of the investment, Indigo Partners’ principals will receive a board seat on CleanJoule’s board of directors.
DON'T MISS: Lawmakers Want FAA to Fix a Big Flying Safety Problem
The Salt Lake City-based startup said it plans to develop technology to cost effectively produce fuel from agricultural residues, and other waste biomass, .It's part of an overall aviation industry goal to reach net zero carbon emissions by 2050. By some estimates, the fuel has the potential to reduce up to 65% of airline-created carbon emissions.
Once ready, the three airline contributors have signed contracts to purchase up to 90 million gallons of the fuel.
“Indigo Partners and its portfolio airlines are committed to decarbonizing air transportation, and the investment in CleanJoule will increase the supply of SAF to the industry,” said Bill Franke, managing partner of Indigo Partners and chairman of Frontier, in a statement. “The company has developed a unique technology to convert abundantly available feedstocks into SAF with remarkable efficiency. We believe that CleanJoule will be a key player in the decarbonization puzzle of the aviation industry.”
Franke has also noted that the fuel has the potential for higher levels of substitution with conventional aviation fuel, creating a larger decarbonization impact.
