The increasing need to reduce carbon emissions drives many industries, including airlines and transportation, to seek sustainable alternatives to meet emission reduction targets and fulfill corporate social responsibility commitments. One of the solutions is sustainable aviation fuel (SAF), which can reduce greenhouse gas emissions by up to 80% compared to traditional jet fuel.
Key Takeaway
Microsoft’s climate innovation fund is supporting Dimensional Energy’s work as a direct equity investor, emphasizing the importance of sustainable aviation fuel for global decarbonization.
Dimensional Energy’s Funding and Investors
An Ithaca, New York-based company called Dimensional Energy produces sustainable aviation fuel from carbon dioxide emissions and water. The company has recently closed a $20 million Series A funding round to ramp up renewable jet fuel production. Envisioning Partners led the latest funding, which brings its total raised to $28 million, with strategic participation from investors including United Airlines’ sustainable flight fund, Microsoft’s climate innovation fund, RockCreek’s smart aviation futures fund, DSC Investment, Delek US, New York Ventures, and existing investors like Elemental Excelerator and Chloe Capital.
Plans for Future Development
The company plans to use the new capital to construct an advanced power-to-liquid fuels plant, utilizing emissions from Lafarge’s Richmond Cement Plant in British Columbia, Canada, in partnership with carbon capture tech company Svante. Dimensional also earmarked part of the raise to develop a 200-barrel-per-day commercial power-to-liquid facility in New York and introduce its first consumer (B2C) and B2B products, including fossil-free surf wax and a cruelty-free fat alternative customized for vegan food companies.
Partnerships and Offtake Agreements
Dimensional Energy sells its products to airlines, freight companies, and specialty chemical firms. Earlier this year, the company signed a sustainable aviation fuel offtake deal with Boom Supersonic, an aircraft maker, and United Airlines. It also generates revenue via contracted offtake agreements and is actively seeking additional long-term contracts with airlines and specialty chemical companies.
