Twelve Raises $645 Million to Accelerate PtL-Powered SAF Production
Twelve, a pioneer in carbon transformation, has secured $645 million in funding to expand its PtL operations, marking one of the largest investments in the e-fuels space. The company specializes in converting captured CO2 into chemicals, fuels, and essential products, with a primary focus on sustainable aviation fuel (SAF) for decarbonizing the aviation sector. This new round of funding, led by TPG Rise Climate, reflects increasing confidence in PtL technology’s potential to revolutionize the SAF market.
The financing package includes $400 million in project equity from TPG Rise Climate, $200 million in Series C financing, and $45 million in credit facilities. Twelve’s AirPlant One, located in Moses Lake, Washington, is expected to start production in 2025. This SAF facility will use biogenic CO2, renewable energy, and water to produce E-Jet® fuel with up to 90% lower lifecycle emissions than traditional jet fuel.
The Role of Power-to-Liquid (PtL) in the SAF Market
PtL technology is rapidly emerging as a frontrunner in the sustainable aviation landscape due to its ability to produce carbon-neutral fuels. The process involves capturing CO2 from the atmosphere or industrial sources and converting it into synthetic fuels using renewable energy. This aligns perfectly with global efforts to decarbonize the aviation sector, which faces mounting regulatory pressure and environmental concerns.
Jonathan Garfinkel, Managing Partner at TPG Rise Climate, emphasized the significance of Twelve’s technology, stating that CO2 conversion is a cornerstone of PtL and a scalable solution for SAF production. This has led TPG to commit $400 million in project equity to accelerate the development of more AirPlants across the U.S.
Strategic Partnerships Fueling Growth
This funding round features prominent participation from several investors, including Capricorn Investment Group, Pulse Fund, and Fifth Wall, all of whom are invested in expanding the SAF market. Other key contributors include Alaska Star Ventures, Munich Re Ventures, and Microsoft’s Climate Innovation Fund, reflecting the broad interest in PtL’s potential.
Elizabeth Stone, Principal at TPG Rise Climate, joined Twelve’s board of directors and highlighted that SAF demand is growing, with companies like Alaska Airlines and IAG already committed to buying E-Jet® fuel produced by Twelve’s AirPlants. “The energy transition will require a clean alternative to traditional jet fuel. SAF demand continues to grow, and we look forward to partnering with Twelve to build world-class capabilities and facilities to meet that demand,” she said.
“Our financing strategy has been to build a comprehensive capital stack that enables us to deliver product to customers at scale while continually driving down costs,” said Nicholas Flanders
Expanding the SAF Supply Chain
As PtL technology gains traction, partnerships with leading airlines like Alaska Airlines are essential for scaling SAF production. Diana Birkett Rakow, Senior Vice President of Public Affairs and Sustainability at Alaska Airlines, noted that Twelve’s technology is promising in expanding SAF supply. “In order to meet our company’s and industry’s ambitious decarbonization goals, we need new technologies like the one Twelve has developed and commercialized,” she said.
Additionally, Twelve has secured $45 million in loans to fund its infrastructure expansion, including a $25 million construction loan from Fundamental Renewables and a $20 million green loan from Sumitomo Mitsui Banking Corporation.
Investor Insights
Key investors in this round are optimistic about the role of PtL technology in transforming the aviation sector. Greg Smithies, Investment Partner at Fifth Wall, highlighted that using electricity to convert CO2 into fuels could eliminate the world’s dependence on fossil fuels for energy and materials. This applies not only to fuels but also to plastics, paints, and clothing, which are typically derived from petrochemicals.
Tenzin Seldon, Founder and Managing Partner of Pulse Fund, noted that Twelve’s technology is a critical leap in decarbonizing industries, particularly aviation. “We are confident that this partnership will be instrumental in driving the systemic change required to transition to sustainable fuels,” he stated.
Amir Karimpour, Managing Partner at northstar.vc, echoed this sentiment, expressing excitement about leveraging Twelve’s technology across their enterprise customer network. Jonathan Goldberg, CEO of Carbon Direct Capital, emphasized the importance of diverse capital partners in supporting carbon management technology.
Outlook for PtL and SAF Market Growth
The global SAF market is expected to attract over $1 trillion in investments by 2050, and Twelve’s recent funding round indicates growing confidence in PtL as a viable long-term solution. With increasing demand from both airlines and policymakers, the next decade will likely see rapid expansion in SAF production capacity, with PtL playing a pivotal role.
Ashwin Jadhav, Vice President of Twelve, also presented at the Sustainable Aviation Futures SAF Congress in Houston on October 2, discussing the broader implications of PtL technology. Jadhav emphasized how this technology will lead high level of emission reduction and resolve the issue of feedstock limitations.
Twelve’s $645 million raise signals a major step forward for PtL technology and its application in SAF production. With backing from global leaders in sustainable finance and partnerships with airlines like Alaska Airlines and IAG, Twelve is well-positioned to become a key player in the aviation sector’s decarbonization efforts.
Source: Twelve.co Press Release
