Air Company Raises $69M to Boost Sustainable Aviation Fuel

New York-based startup Air Company innovative carbon conversion technology, transforming CO2 emissions into sustainable aviation fuel (SAF), has raised $69 million in Series B funding to significantly reduce jet fuel dependency and significantly decrease aviation’s carbon footprint.

Avfuel spearheaded the investment, with significant contributions from Lowercarbon Capital, IQT (In-Q-Tel), Alaska Airlines, and other key players. This financial boost will enable the company to construct new production facilities for sustainable aviation fuel (SAF), which is essential for decreasing the aviation industry’s carbon footprint.

“The key impact Air Company can have toward fighting climate change is we eliminate the need for crude oil. To combat climate change effectively, we must develop facilities on the scale of oil refineries, spanning several hundred football fields. Much of this funding is directed towards achieving that scale,” said Stafford Sheehan, Air Company’s co-founder and chief technology officer.

Air Company Expanding SAF Production

Currently, SAF production remains limited and costly. Jet fuel combustion contributes to 2 percent of global CO2 emissions, but SAF could cut these emissions by up to 80 percent. In 2023, the U.S. used just 24.5 million gallons of SAF, compared to the 69 million gallons of fossil jet fuel consumed daily. The increased demand for SAF, driven by climate regulations and corporate commitments, signals a promising future for the industry.

Air Company’s technology involves capturing CO2 from the atmosphere and combining it with hydrogen to create paraffin, which can be used in standard jet engines. The startup operates two pilot facilities in Brooklyn, producing small batches of SAF for testing. With new funding, Air Company plans to build several “mini refineries” over the next two to three years. These refineries will help validate the scalability of their SAF production technology.

“The aviation sector faces a critical challenge in meeting the growing demand for sustainable aviation fuel,” said CR Sincock, Executive Vice President of Avfuel Corporation.

“SAF represents a crucial pathway to decarbonization, and AIR COMPANY’s innovative CO₂-derived SAF technology stands out as a leading solution. By partnering with AIR COMPANY, Avfuel is committed to accelerating the widespread adoption of this high-performing fuel and driving meaningful emissions reductions across the industry,” added Sincock.

Future Prospects and Partnerships

Air Company has secured contracts with major airlines, including JetBlue and Virgin Atlantic, to supply 125 million gallons of SAF. Additional agreements with Air Canada and Boom Supersonic further underscore the growing interest in SAF. The company also has a $65 million contract with the U.S. Department of Defense and collaborates with New York University’s Tandon School of Engineering to develop SAF for NASA’s rockets.

While Air Company’s SAF has only been used in test flights, the startup is optimistic about overcoming regulatory challenges. The fuel must receive certification from ASTM International before it can be used commercially. Despite the hurdles, Air Company is confident in its ambitious expansion plans.

Air Company’s latest funding round marks a significant step toward enhancing SAF production and reducing aviation emissions. With strong investor backing and strategic partnerships, the company is poised to substantially impact the aviation industry’s carbon footprint.

“One of the core deliverables for our business over the next couple of years as part of the fundraise is to go through and finalize that regulatory process. That will allow us to sell that fuel to airlines as commercial fuel,” said Gregory Constantine, Air Company’s co-founder and CEO.

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