According to a recent filing, e-fuels startup Aether Fuels is raising $34.3 million

Aether Fuels has raised $30.4 million out of a $34.3 million funding round, according to an SEC filing. This e-fuels startup is focused on producing fuel for aviation and maritime shipping using carbon dioxide and other waste carbon streams. This funding injection significantly boosts the company’s finances, following an $8.5 million raise via convertible notes in late 2023.

Aether Fuels was spun out of Xora Innovation, an early-stage, deep-tech incubator managed by Temasek. The company is refining technology that utilizes carbon from various waste streams, including industrial pollution, methane from landfills, and leftover plant debris from farms.

Details about their conversion process are limited, but a patent application filed in January indicates they might use natural gas. The process involves gasifying solid waste, blending it with natural gas, and transforming the mixture into liquid fuel while capturing any waste carbon dioxide.

In February, Aether Fuels announced a deal providing access to a gas-to-liquid program initiated by GTI Energy, a natural gas nonprofit.

Airlines and maritime shipping companies are increasingly exploring bio-derived sustainable aviation fuel (SAF) and e-fuels to decarbonize their energy-intensive operations. However, these efforts are still in their early stages. For instance, the current production of SAF is less than 0.1% of total aviation fuel use, even though SAF is more mature compared to e-fuels.