CleanJoule Announces US$50M Investment by International Consortium to Accelerate Sustainable Aviation Fuel Production
Funds raised will further develop CleanJoule’s technology to produce more cost-effective Sustainable Aviation Fuel; investors include Indigo Partners, GenZero, Cleanhill Partners, Frontier Airlines, Wizz Air and Volaris
The funding round marks an important chapter in the global effort to mitigate carbon emissions and deliver meaningful climate action. SAF, a biofuel used to power commercial aircraft but with a smaller carbon footprint, could potentially contribute up to 65 percent of the reduction in emissions needed by the aviation sector to reach net zero in 2050, according to the International Air Transport Association. Depending on the feedstock and technologies used to produce it, SAF can reduce life cycle greenhouse gas emissions dramatically compared to conventional jet fuel.
As part of the consortium’s investment, Frontier Airlines, Wizz Air and Volaris have signed binding agreements to purchase up to 90 million gallons of SAF. The principals of Indigo Partners will also receive a board seat on CleanJoule’s Board of Directors.
Dr. Mukund Karanjikar, co-founder and chief executive officer of CleanJoule: “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. 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. 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.”
Bill Franke, managing partner of Indigo Partners: “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. 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.”
Frederick Teo, chief executive officer of GenZero: “Decarbonizing aviation requires solutions that can be adopted at scale. 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. We are delighted to support CleanJoule to achieve greater adoption of SAF globally.”
Ash Upadhyaya and Rakesh Wilson, managing partners of Cleanhill Partners: “We’re excited to extend our partnership with CleanJoule. As one of CleanJoule’s earliest investors, we recognized the high value of the company's technology and the viability of its approach. We look forward to the next steps towards accelerating the commercialization of its SAF technology.”
About CleanJoule
CleanJoule Inc., headquartered in
About Indigo Partners
Indigo Partners is a private equity firm established by W. A. Franke in 2003 to pursue acquisitions and strategic investments in air transportation and related industries. The firm has been a lead investor in the airline sector to include Tiger Airways based in
About GenZero
GenZero is an investment platform company focused on accelerating decarbonization globally. Founded by Temasek, we seek to deliver positive climate impact alongside long-term sustainable financial returns by investing in opportunities with the potential to be nurtured into impactful and scalable solutions. Driven by a common purpose to decarbonize for future generations, we recognize the need for a holistic and integrated approach to achieve a net zero world. At GenZero, we adopt a flexible investment approach across three focus areas to drive climate impact: (i) nature-based solutions that help protect and restore our natural ecosystems while benefiting local communities and biodiversity; (ii) technology-based solutions that deliver deep decarbonization impact; and (iii) carbon ecosystem enablers which refer to companies and solutions that support the development of an effective, efficient, and credible carbon ecosystem. For more information, visit https://genzero.co.
About Cleanhill Partners
Cleanhill Partners is a private equity firm pursuing investments in the energy transition sector that contribute to decarbonization. The firm invests in scalable businesses with visibility into revenues, earnings, and cash flow growth, leveraging its thesis-driven approach and operational expertise to enhance value in each of our investments. For more information, visit www.cleanhillpartners.com.
About Frontier Airlines
Frontier Airlines (NASDAQ: ULCC) is committed to “Low Fares Done Right.” Headquartered in
About Wizz Air
Wizz Air, the fastest-growing European ultra-low-cost airline, operates a fleet of 181 Airbus A320 and A321 aircraft. A team of dedicated aviation professionals delivers superior service and very low fares, making Wizz Air the preferred choice of 27.1 million passengers in the Financial Year F22 ending 31 March 2022. Wizz Air is listed on the London Stock Exchange under the ticker WIZZ. The company was recently named one of the world's top ten safest airlines by airlineratings.com, the world's only safety and product rating agency, and 2020 Airline of the Year by ATW, the most coveted honor an airline or individual can receive, recognizing individuals and organizations that have distinguished themselves through outstanding performance, innovation, and superior service. Wizz Air has also been recognized as the “Most Sustainable Low-Cost Airline” within the World Finance Sustainability Awards 2022 and the “Global Environmental Sustainability Airline Group of the Year” by the CAPA-Centre for Aviation Awards for Excellence 2022. For more information on Wizz Air, visit https://wizzair.com/.
About Volaris
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (“Volaris” or the Company) (NYSE: VLRS and BMV: VOLAR) is an ultra-low-cost carrier, with point-to-point operations, serving
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Michael Tebo
Gabriel Marketing Group
Phone: 571-835-8775
Email: michaelt@gabrielmarketing.com
Source: CleanJoule Inc.