Notoriously known as a “dirty sector”, the aviation industry has faced increasing pressure to find sustainable and long-term solutions for decarbonization. As this is a multifaceted and complex issue, the solution will most likely emerge from collective efforts, with the integration of sustainable aviation fuels (SAF) at the forefront of the battle.
JetBlue Ventures has continued our investments in SAF technology with a commitment to Aether Fuels’ $34M Series A round which closed earlier in 2024. Aether Fuels is a climate technology company that economically converts abundant and low-value waste carbon into liquid fuels, so industries like aviation can achieve their net zero goals.
Differentiated Technology as a Competitive Advantage
We invested in Aether Fuels due to its unique technological approach to SAF production, which provides a robust and defensible competitive advantage. Aether Aurora’s single-step tri-converting reactor integrates reverse water gas shift (RWGS), steam methane reforming (SMR), and dry reforming reactions into a streamlined process. This technological innovation utilizes half the necessary reactors and can directly convert CO2 and hydrogen. Additionally, Aether also has an enhanced upgrading step that further reduces equipment count. Aether Fuels’ solution incorporates technology elements licensed from GTI Energy, an industrial R&D lab with over 80 years of experience, primarily focused on the low-carbon transition.
Growing Market
The demand for SAF is growing rapidly, yet supply remains insufficient. As regulatory bodies advance toward enforcing net-zero targets, every sector of the aviation industry will be impacted. According to the International Air Transport Association (IATA), the path to net zero will heavily depend on SAF deployment, with an estimated 65% of the challenge being addressed through its integration into daily operations.[1]
IATA’s Plan to Achieve Fly Net Zero by 2050
As of 2024, the SAF supply and deployment landscape has evolved significantly. In July 2024, IATA announced that it is on track to meet the target production of 1.9 billion liters (1.5 million tonnes) for the year. However, this would only cover 0.53% of aviation’s fuel needs in 2024. The demand for SAF will remain particularly high in the U.S., Europe, and Asian markets, driven primarily by regulations and continuing to grow faster than the available supply.
SkyNRG has projected global SAF capacity based on the availability of feedstock across various production pathways, including HEFA, biomass, and e-SAF. Their analysis indicates that to meet the growing demand for SAF, the industry will need to develop between 500 and 800 production facilities.
Global SAF Capacity vs Demand
With regulations increasingly driving sustainable solutions in the aviation sector and airlines setting ambitious targets, the demand for SAF is expected to remain strong.
Target Market Diversity
Aether Fuels aims to develop projects globally, with a current focus on North America and Asia, leveraging the company’s extensive network across these regions. Its exposure to the world’s two largest economies provides access to a large and diverse market opportunity and offers broad flexibility to adapt its go-to-market plans as individual country-level policies and demands evolve.
Strategically Positioned for Developing a First-of-a-Kind Project
Access to capital, developing early relationships with customers, and securing strategic partnerships are key drivers of success for climate tech companies that are developing “first-of-a-kind (FOAK)” projects that deploy novel technologies.
In the long term, Aether Fuels will rely on project financing for development. However, securing infrastructure capital requires proven, de-risked technology, among other criteria. Bridging the gap between venture and early-stage funding and debt facilities is crucial for ensuring success, yet it remains one of the most challenging aspects of the process. While FOAK projects have attracted significant interest from early-stage investors, momentum for such deals has diminished when examining growth-stage capital deployment.
This is why it is important for SAF developers to engage with institutional and strategic investors early, as they can offer support along the way. Based on SkyNRG’s analysis, the industry will need to invest over $1 trillion by 2050 to meet current demands.[4] We invested in Aether Fuels because we believe the team can successfully bridge the gap between early-stage financing and infrastructure funding.
Aether Fuels is backed by climate tech investors with experience in the industry such as AP Ventures and deeptech investors who are familiar with the capital requirements and timeline of such projects, such as Xora Innovation and Foothill Ventures. Equally important are the strategic investors in the round who are not only investing in the company but also looking forward to potential partnerships to help scale and deploy the technology. These investors include Tech Energy, Doral Tech Ventures, Chevron Technology Ventures, CDP, Eni Next, and Zeon Ventures.
Access to capital is just one pillar driving the success of these projects. Equally important are securing the right partnerships for plant development, advancing technology, and establishing off-take agreements to ensure demand. Aether Fuels’ partnerships with its strategic investors go beyond mere capital deployment, extending into project execution and technology development to progress through the technology readiness levels and achieve full commercial application.
Eni and Chevron in particular have the capabilities needed to accelerate the development of a FOAK plant, due to their deep domain expertise. The goal is to demonstrate the technology’s viability and attract the necessary capital for the next phase of development and scaling. These partnerships are designed to de-risk the technology and pave the way for larger-scale projects. In the long term, they could enable equity investments in more extensive facilities — an essential step for project developers seeking co-investors to share both risk and expertise.
The partnerships Aether Fuels has established are a strong indicator that the management team is thinking strategically about scaling its technology and achieving every important milestone, from financing to development and offtake agreements.
Exceptional Team
Lastly, our investment was driven by our trust in a highly accomplished team of industry experts, led by Conor Madigan. A seasoned deep-tech entrepreneur, Conor previously founded and led Kateeva, where he raised over $300 million in capital and transformed a university lab idea into a 300-person company, supplying industry-leading $20 million/unit production equipment to Samsung and other global leaders. Sanjiv Dabee, VP of Engineering, is a leader in syngas generation and conversion technology. Most recently, Sanjiv served as Director and Fellow of Syngas Technology at Fluor, where he led teams for over 20 years, advancing gasification, liquid synthesis, and biomass conversion projects.
Betting on Aether Fuels
Looking toward a more sustainable future, we recognize the responsibility to invest in and support compelling solutions today that have the potential to drive that vision forward. This is why we invested in Aether Fuels — betting on its differentiated technology, access to financial resources, and a leadership team with a proven track record as industry experts.
[1] Our Commitment to Fly Net Zero by 2050, IATA
[2] Sustainable Marine Fuels Market Size, Share, and Trends 2024 to 2033, Precedence Research
[3] A weak $11.3bn start to 2024, CTVC
[4] Sustainable Aviation Market Outlook 2024, SkyNRG
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