June 1, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Principals of U.S.-based private equity firm Indigo Partners have led a $50 million investment round for CleanJoule, a Utah-based startup developing a breakthrough technology for the production of superior, cost-effective sustainable aviation fuel (SAF). 

The round also included a range of impressive backers including GenZero, a Temasek-backed investment platform focused on decarbonization; Cleanhill Partners, a U.S.-based private equity firm focused on decarbonization; and three airlines: U.S.-based Frontier Airlines, Europe-based Wizz Air, and Mexico-based Volaris. 

Under the terms of this round, Frontier Airlines, Wizz Air, and Volaris have signed binding agreements to purchase up to 90 million gallons of SAF from CleanJoule, and the principals of Indigo Partners will receive seats on the company’s Board of Directors. 

“Indigo Partners and its portfolio airlines are committed to decarbonizing air transportation, and the investment in CleanJoule will increase the supply of SAF to the industry,” said Bill Franke, managing partner, Indigo Partners.

“The company has developed a unique technology to convert abundantly available feedstocks into SAF with remarkable efficiency. We believe that CleanJoule will be a key player in the decarbonization puzzle of the aviation industry.”

Aviation is one of the fastest-growing sources of carbon dioxide (CO2) emissions globally. As an alternative to conventional fossil fuel-based aviation fuel, SAF continues to gain growing attention from both airlines and investors.  

“The aviation industry presents a key frontier in carbon emissions mitigation. There has never been a more crucial time for us to lead the change than through viable sustainable fuel alternatives,” said Dr. Mukund Karanjikar, co-founder and CEO, CleanJoule.

As a biofuel produced from renewable sources such as organic waste, biomass, waste oils, SAF is designed to reduce greenhouse gas emissions and mitigate the environmental impact of aviation, making it a key tool in delivering meaningful climate action. And when used to power commercial aircraft, it has the potential to contribute up to 65 percent of the reduction in emissions needed by the aviation sector to reach net zero by 2050, according to the International Air Transport Association. 

“Decarbonizing aviation requires solutions that can be adopted at scale,” said Frederick Teo, CEO, GenZero. “CleanJoule’s fuel technology relies on widely available feedstock – agricultural waste – to produce a sustainable biofuel that could be cost-effective at scale with better fuel economy. Its unique approach also allows for higher levels of substitution with conventional aviation fuel thus creating a greater decarbonization impact.”

CleanJoule noted that this funding is reflective of an important chapter in the global fight to lower carbon emissions, adding that the capital raised will be used to further the development of its technology platform for advancing the production of superior SAF from agricultural residues and other biomass waste. 

“As we advance on the commercialization of our fuel technology, CleanJoule is well-positioned to scale the supply of SAFs in the market and shorten the runway in the transition towards a greener aviation industry,” said Dr. Karanjikar.

“We are proud to have the support of our new investor partners, who not only share our mission but who have chosen to place their capital and trust in us to drive the transformation of global aviation.”

Ash Upadhyaya and Rakesh Wilson, managing partners, Cleanhill Partners, added,  “As one of CleanJoule’s earliest investors, we recognized the high value of the company’s technology and the viability of its approach.”  

“We’re excited to extend our partnership with CleanJoule. We look forward to the next steps towards accelerating the commercialization of its SAF technology.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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