AIR COMPANY raises $69 million to advance its industrial CO2-to-SAF process

US-based carbon conversion startup AIR COMPANY has raised $69 million in fresh funding to progress its proprietary Carbon Conversion Reactor technology, designed as a one-step system to transform carbon dioxide into products including sustainable aviation fuel. The Series B funding round was led by business aviation fuel supplier Avfuel and supported by sustainable investment groups and other aviation companies. Through the new process, CO2 that routinely would be discharged into the atmosphere is instead captured at source within industrial plants. Then, using its patented AIRMADE technology to mimic the natural process of photosynthesis, the company combines CO2 and green hydrogen to create SAF, alcohol and chemicals, including perfumes.

In addition to Avfuel, which will be represented on the AIR COMPANY board of directors, the latest backers of AIR COMPANY’s AIRMADE system include Alaska Airlines, sustainable investment groups Lowercarbon Capital, In-Q-Tel, and Connecticut Innovation’s Climate Technology Fund, plus aviation support businesses JSSI, Duncan Aviation and infrastructure provider Sheltair Aviation.

Previous investors JetBlue Ventures, Toyota Ventures and Carbon Direct Capital also participated in the latest capital raising, which will be used to boost AIR COMPANY’s engineering and research and development capabilities to accelerate development of the AIRMADE system to produce new fuels for commercial and government customers. US-based carrier JetBlue and UK-based Virgin Atlantic Airways are among the first customers to commit to buying SAF, as is the US Defense Innovation Unit, with a $65 million agreement.

The company says its one-step process is more energy-efficient than competing two-step conversion systems in which CO2 and green hydrogen are combined in a syngas generator then further processed in a Fischer-Tropsch reactor to create liquid fuel.

Once captured at industrial plants, the CO2 sourced by AIR COMPANY is cooled, pressurised and liquified, and green hydrogen is produced by the company through in-house electrolysis, powered by renewable energy.

Residual oxygen is discharged into the atmosphere, while the hydrogen gas and captured CO2 are each transferred to the Carbon Conversion Reactor which blends the two to directly produce liquid fuel.

“Our technology is designed to be modular to facilitate adoption and scalability,” explained the company’s CEO, Gregory Constantine.

“This adds flexibility to fuel supply chains, strengthens energy security, and fosters domestic job creation,” added Dr Stafford Sheehan, who, with Constantine, co-founded the business.

Said CR Sincock, Executive VP of Avfuel Corporation: “The aviation sector faces a critical challenge in meeting the growing demand for sustainable aviation fuel. SAF represents a crucial pathway to decarbonisation and AIR COMPANY’s innovative CO2-derived SAF technology stands out as a leading solution.

“By partnering with AIR COMPANY, Avfuel is committed to accelerating the widespread adoption of this high performing fuel and driving meaningful emissions reductions across the industry.”

Earlier this year, Avfuel also extended to 2027 a partnership launched in 2021 with SAF producer Neste to supply the fuel to business aviation operators and support facilities in the US. Each year of the deal, AvFuel has tripled its SAF offtake from Neste, a trend which it expects to continue under the extended agreement.

Among AIR COMPANY’s other new investors, several have supported other sustainable aviation programmes, including Lowercarbon Capital, which has also backed Sweden’s Heart Aerospace in developing the hybrid-electric ES-30 regional plane; Connecticut Innovation Climate Tech Fund, which has backed electric air taxi developer Eve Air Mobility; and In-Q-Tel, which has supported drone logistics company Swoop Aero.

“As we scale globally,” said AIR COMPANY, “we’ll commercialise our technology and products while offering equitable distribution of our systems to communities disproportionately affected by the climate crisis.” 

Photo: AIR COMPANY’s AIRMADE technology

Tony Harrington

Correspondent

• Linkedin