Electric cars have become a real and viable alternative to old combustion engines, but in commercial aviation, nothing like that has emerged yet.
Jet propulsion still depends almost exclusively on petroleum-derived fuels, although there are experiments with the use of biofuels.
Planes burn nearly 380 billion liters of fuel each year, emitting approximately 1 billion tons of CO2 – or just over 2% of global emissions.
The so-called sustainable aviation fuels (SAFs) are still more of a promise than reality, although the aviation industry aims to be carbon neutral by 2050.
The solution may come from chemistry.
Twelve, a Californian startup that has just raised $645 million and is already worth over $1 billion, has developed a technology that, through a chemical process, mimics photosynthesis and produces aviation fuel with lower emissions levels – using carbon dioxide from the atmosphere, not petroleum as a source.
The investor round was led by TPG, the giant of private equity. The TPG Rise Climate fund is contributing $400 million, which will be added to $200 million from a Series C and $45 million in additional financing.
The money will be used to complete the first production unit of the startup’s synthetic fuel, which will be located in the state of Washington.
According to Twelve, this will be the first of several factories of its E-Jet, the synthetic fuel that, in its lifecycle, emits 90% less carbon than conventional fossil fuels.
In the fuel synthesis process, a catalyst – an electrolyzer, more precisely – breaks down carbon dioxide (CO2), creating oxygen and carbon monoxide (CO).
The CO is then combined with hydrogen gas (H2), resulting in a synthetic gas, which, through another chemical reaction, is converted into liquid fuel.
In theory, the technology can create infinite volumes of fuel without the use of petroleum. The only barrier is the electricity needed for electrolysis.
The availability of clean and cheap energy is therefore one of the conditions for this technology to truly be a sustainable alternative on a large scale.
There are other startups bringing similar solutions to the market.
Brookfield Asset Management recently announced a $200 million investment in Infinium, another Californian startup that is completing its first eFuel factory in Texas.
Brookfield may invest an additional $850 million in the company to finance the construction of other sustainable fuel factories around the world.
From capturing CO2 from the atmosphere, fuels are synthesized that can replace those derived from petroleum – and without emitting pollutants like sulfur.
This new class of fuels has been called ‘electrofuels’ – fuels manufactured from electrolysis using renewable energy.
These fuels can be used not only in aviation but also to fuel trucks and ships, replacing diesel. Sustainable synthetics are also a possible green alternative to the naphtha used in the plastics industry.
In Brazil, investments in SAFs have focused on the development of vegetable oil-based biofuels or ethanol that can be used in a blend with aviation kerosene. But there is still no commercial-scale production.
One of the points of the Future Fuel bill, recently approved, is precisely the promotion of SAFs.
Starting in 2027, at least 1% of the aircraft fuel composition must be sustainable fuel. By 2037, the percentage will increase to 10%.
“Today the country doesn’t produce anything. It wouldn’t be able to meet this requirement – unless it was through imports,” an executive from one of the largest Brazilian distributors told the Brazil Journal.
To encourage research in the field, BNDES and Finep have just launched a program with up to R$6 billion in financing.
A current obstacle to adoption by airlines is the cost, which can be three times that of aviation kerosene. In the US and Europe, there are subsidies – and yet the percentage of SAFs remains minimal.
In the European Union, the goal is to reach 2% by 2025 and 70% by 2050.
In the US, major airlines have committed to reaching a 10% share by 2030.
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
