Lydian Secures $43 Million Investment for Sustainable Aviation Fuel Technology

Breakthrough Energy Ventures-led investment targets commercialization of synthetic sustainable aviation fuel at scale.

US-based climate technology start-up Lydian has completed a Series A investment of USD 43 million to commercialize synthetic sustainable aviation fuel (SAF) technology. The financing round was led by Breakthrough Energy Ventures (BEV), founded by Bill Gates, with participation from AP Ventures, Builders Vision and existing investors.

The company announced it will use the new investment to scale its PIVOT™ platform, which produces synthetic aviation fuel using carbon capture and green hydrogen. The developed platform aims to significantly reduce capital costs compared to conventional synthetic fuel production facilities while simplifying production processes.

Converting carbon dioxide and hydrogen into jet fuel
Lydian's developed technology converts captured carbon dioxide and hydrogen first into syngas and then into sustainable aviation fuel using Fischer-Tropsch synthesis. Through its proprietary reactor design, the company aims to eliminate energy-intensive processes such as syngas compression and gas separation, reducing both capital and operating costs. Additionally, since the system is designed to operate entirely on renewable electricity, it contributes to reducing carbon footprint.

Transition from pilot facility to commercial production
Lydian operates a pilot facility in Boston with an annual sustainable aviation fuel production capacity of approximately 30 tonnes. The company plans to bring a demonstration facility with annual capacity of 7,000 tonnes on-stream in 2028 and commence operation of its first commercial facility with approximately 70,000 tonnes/year production capacity in 2030.

Growing interest in low-carbon fuels in aviation sector
Regulations aimed at reducing carbon emissions in the aviation sector and the proliferation of sustainable fuel usage requirements are accelerating investments in SAF technologies. Sustainable fuel blending targets implemented in Europe and Asia, along with incentive mechanisms in the US, are directing airlines toward investing in alternative fuel technologies.

The investment in Lydian is also the first publicly disclosed investment by the Breakthrough Energy Ventures fund, supported by the oneworld airline alliance, in the sustainable aviation fuels sector. The fund is said to aim at accelerating the commercialization of low-emission and economically competitive fuel technologies in the aviation sector.

Source