CleanJoule, a U.S.-based startup focused on sustainable aviation fuel (SAF), has announced a significant investment round of $50 million. The round was led by the principals of Indigo Partners, a private equity firm, and included participation from GenZero, a decarbonization-focused investment platform company of Temasek, as well as Cleanhill Partners, Frontier Airlines, Wizz Air, and Volaris.
The funding marks a crucial step in the global effort to mitigate carbon emissions and combat climate change. Sustainable Aviation Fuel (SAF) is a biofuel used to power commercial aircrafts. SAF has a smaller carbon footprint compared to conventional jet fuel. The International Air Transport Association estimates that SAF could contribute up to 65 percent of the reduction in emissions needed for the aviation sector to reach net zero by 2050.
CleanJoule aims to develop technology that produces high-performance SAF from agricultural residues and other waste biomass in a more cost-effective manner. This investment will support the further development and scaling of CleanJoule’s technology to meet the growing demand for sustainable aviation fuel.
As part of the investment, Frontier Airlines, Wizz Air, and Volaris have signed binding agreements to purchase up to 90 million gallons of SAF. Additionally, the principals of Indigo Partners will join CleanJoule’s Board of Directors, bringing their industry expertise and network to support the company’s growth.
Dr. Mukund Karanjikar, co-founder and CEO of CleanJoule, highlighted the importance of sustainable fuel alternatives in the aviation industry. He expressed confidence that CleanJoule’s technology can scale the supply of SAFs in the market and contribute to the transition towards a greener aviation industry.
Bill Franke, Managing Partner of Indigo Partners, emphasized the firm’s commitment to decarbonizing air transportation and its belief in CleanJoule’s unique technology. He sees CleanJoule as a key player in the decarbonization puzzle of the aviation industry.
Frederick Teo, CEO of GenZero, stressed the need for scalable solutions to decarbonize aviation. GenZero is optimistic about CleanJoule’s technology, which uses widely available feedstock and can be cost-effective at scale, contributing to a greater decarbonization impact.
Ash Upadhyaya and Rakesh Wilson, Managing Partners of Cleanhill Partners, expressed their excitement about extending their partnership with CleanJoule. They recognized the value of CleanJoule’s technology and are looking forward to accelerating the commercialization of its SAF technology.
CleanJoule, headquartered in Salt Lake City, Utah, is dedicated to developing breakthrough technology for producing superior and cost-effective SAF. The company’s manufacturing process offers high efficiency, feedstock flexibility, and a high degree of decarbonization.
The investment from Indigo Partners, GenZero, Cleanhill Partners, and the three airlines represents a significant endorsement of CleanJoule’s technology and its potential to contribute to the decarbonization of the aviation industry. The funding will propel CleanJoule’s efforts to produce sustainable aviation fuel at scale, supporting the global transition to a greener and more sustainable aviation sector.
Image provided by Tom Cattini
