23.8 C
New York

Microsoft back sustainable jet fuel company Dimensional Energy


Microsoft is set to back sustainable jet fuel company Dimensional Energy by taking part in a $20 million funding round.

The aviation industry is seeking efficient alternatives due to the ongoing climate crisis. Sustainable aviation fuel (SAF) has emerged as a way to reduce greenhouse gas emissions by up to 80% compared to traditional jet fuel, in line with carbon reduction targets and corporate quotas.

Based in New York, Dimensional Energy specializes in creating sustainable aviation fuel (SAF) using carbon dioxide emissions and water. The company successfully completed a $20 million deal in a Series A funding round, with Microsoft’s climate fund as a participant.

Brandon Middaugh, senior director at Microsoft’s climate innovation fund, stated, “The world needs immediate and rapid decarbonization across all sectors, and Dimensional Energy shows great promise as a cleaner and lower carbon aviation solution alongside reductions in industrial emissions.” Microsoft’s climate innovation fund supports Dimensional Energy’s work as a direct equity investor, reflecting the company’s commitment to the sustainable aviation fuel market.

The funding round was led by Envisioning Partners, with other investors including United Airlines’ sustainable flight fund, RockCreek’s smart aviation futures fund, DSC Investment, Delek US, New York Ventures, and existing investors like Elemental Excelerator and Chloe Capital. This collective effort has raised the total funding to $28 million.

Jason Salfi, founder and CEO of Dimensional Energy, emphasized the company’s commitment to sourcing feedstocks in harmony with the environment and local communities: “Dimensional Energy makes a replacement for oil from carbon dioxide and water. Dimensional is committed to sourcing feedstocks in balance with nature and communities where plants are built.”

Expansion Plans

Following this investment, Dimensional Energy revealed plans to establish an advanced power-to-liquids fuel plant, with the fuel source supplied by Lafarge’s Richmond Cement Plant in British Columbia, Canada, in collaboration with carbon capture company Svante.

Additionally, Dimensional Energy will introduce its first direct-to-consumer (BTC) and business (BTB) products, including a fossil-free surf wax and a cruelty-free fat alternative tailored for vegan food manufacturers.

The company primarily serves airlines, freight companies, and chemical firms. In the past year, Dimensional Energy secured a deal with aircraft maker Boom Supersonic to supply 5 million gallons of SAF per year for Boom’s flight test program.

However, achieving a balance between sustainability and profitability presents challenges. Dimensional Energy generates revenue through contracted offtake agreements and actively seeks long-term contracts with airlines and specialist chemical companies.

Featured Image: Photo by Kelly on Pexels

Related articles

Recent articles