Metafuels closes oversubscribed $9 million round

Metafuels, the developer of a novel technology for sustainable aviation fuel compatible with existing aircrafts, has finalized an oversubscribed $9 million round, bringing its total capital raised to $22 million in just over two years. Led by Celsius Industries, the proceed from the round will be used to scale up the industrial production of its sustainable aviation fuel.

Based in Zurich, Metafuels focuses on the development and deployment of proprietary sustainable fuel technologies, with an initial focus on synthetic aviation fuel (SAF), which do not require reengineering or re-purchasing of existing aircraft, or aviation logistics infrastructure. This solution addresses one of the most challenging areas of decarbonization, with the aviation industry responsible for up to 3.5% of total global greenhouse gas emissions (GHG).

Like other SAF players, Metafuels focuses on the production of sustainable aviation fuel made using renewable electricity as the primary energy source (e-SAF). However, Metafuels’ differentiation is cost leadership through the ability to convert its feedstock (e-methanol) into e-SAF with a significantly higher yield, ensuring a more efficient and cost-effective process. Metafuels’ signature e-SAF, aerobrew, can replace conventional kerosene regardless of the size, type of aircraft, and short-haul or long-haul.

The latest oversubscribed funding round was finalized at $9 million, bringing the company’s total money raised to $22 million in just over two years, making it one of Europe’s best funded sustainable aviation fuel startups. The round was led by Celsius Industries (fka UNTITLED and anchored by the Tetra Laval industrial family). Other new investors are RockCreek, Fortescue Ventures, Verve Ventures, with existing investors Energy Impact Partners (EIP) and Contrarian Ventures also participating.The proceeds from the funds will be used to complete the demonstration programme and focus on industrialisation, and the commercial rollout for our e-SAF offering, as Saurabh Kapoor, CEO and co-founder of Metafuel, explained.

The funding round follows several technological breakthroughs in 2023 and 2024, which herald the next phase of Metafuels development cycle – moving from lab research to demonstration and production scale-up. Additionally, Metafuels – alongside the PSI Institute – has recently secured a $5 million grant from the Swiss Government’s Federal Office of Energy.

In May this year, Metafuels announced that it has signed an agreement with European Energy to set up a synthetic sustainable aviation fuel (e-SAF) facility in Denmark. The facility will produce approximately 12,000 litres of e-SAF daily. The project development phase is underway, with Metafuels already engaged in early offtake conversations, including through a potential buyers’ alliance with airlines, fuel suppliers, airports, and corporate travellers alike.

Michele Tarawneh, Managing Partner at Celsius Industries, commented: “We have been tracking methanol-to-SAF as a key pathway to decarbonize aviation for the past 18 months, and Metafuels stands out as the most compelling player in the space: an experienced team, with a unique technology insight, and a tangible path to establish production capacity in the near-term. We are thrilled to work with Saurabh, Leigh and the team, to help them accelerate their path to industrialization and first-of-a-kind (FOAK) project finance, enabling the roll-out of mission critical infrastructure for green fuels.”

(Press release/RAN)