Aviation accounts for 2–3% of global CO₂ emissions—a climate contribution estimated to be two to four times higher when accounting for their impact on the atmosphere.
As a means to decarbonize the industry, Sustainable Aviation Fuel (SAF) has emerged as a promising solution. SAF is produced from feedstocks, hydrogen, or captured carbon as a sustainable alternative to traditional jet fuel. Since 2022, a surge in early-stage funding has accelerated innovation across the SAF value chain. Below are five startups gaining traction, based on our latest market data.
Aether Fuels (Singapore)
Aether Fuels’ sustainable fuel is designed to replace petroleum-based products in the aviation and shipping industries. The Singapore company has raised $42.5 million from investors, including Aster Group and Zeon Ventures, to scale its proprietary platform converting low-carbon feedstocks into energy-dense liquid fuels.
In contrast to many other players, Aether operates across the entire SAF value chain. By using biogenic CO2 and waste carbon to produce fuel, and driving innovation across processes, plant configurations, catalysts, and equipment, Aether significantly reduces production costs.
Firefly (United Kingdom)
Firefly uses sewage, a biogenic waste, as feedstock to produce SAF. The startup upcycles sewage sludge—a wastewater byproduct—to create fuel, delivering double climate benefit by using a feedstock that would otherwise contribute to methane emissions.
Founded in 2021, the company has already attracted $8.95 million in backing from investors including Builders Vision, Plug and Play Tech Center, Wizz Air, and the UK Government. Firefly’s pilot projects demonstrate a scalable pathway to producing SAF without competing with food crops or requiring virgin land, a key sustainability consideration for the sector.
Norsk e-Fuel (Norway)
Norsk e-Fuel is one of Europe’s most advanced projects in the emerging field of e-fuels. Based in Oslo, the company produces synthetic fuels made from captured CO₂ and renewable electricity, effectively recycling CO₂ into jet fuel.
With first production slated for 2026, Norsk e-Fuel is drawing strong support across Europe as governments and airlines seek homegrown, green solutions to aviation’s carbon footprint. Its model is designed to scale in line with renewable energy growth, potentially making Norway a hub for synthetic SAF production in the years ahead.
Dimensional Energy (USA)
New York–based Dimensional Energy is leveraging artificial photosynthesis to turn carbon dioxide into sustainable fuels. Its proprietary reactor technology mimics natural photosynthesis but operates with higher efficiency, using renewable power to transform captured CO₂ into hydrocarbons suited for aviation.
The startup has piloted its process with a test facility in Tucson, Arizona, and has signed offtake agreements with major airlines seeking to secure long-term access to SAF. By making use of point-source CO₂ streams as well as direct air capture, Dimensional Energy is bridging climate technology with immediate industry needs, enabling airlines to reduce Scope 3 emissions at scale.
Vertoro (Netherlands)
Vertoro, headquartered in the Netherlands, is pioneering a bio-based alternative to fossil fuels through its “Goldilocks®” process, which turns lignin and cellulose derived from forestry and agricultural residues into an energy-rich liquid. This lignin oil can be used as a feedstock for bio-based chemicals and as an intermediate in SAF production, without competing for land.
Vertoro has secured $11.7 million in funding and is working with partners across Europe to scale production. By valorizing waste biomass streams, Vertoro is helping to expand the range of inputs that can underpin a truly circular SAF supply chain.
SAF is taking off
After a slow start, SAF is quickly advancing from concept to commercial reality. These companies show that innovation is happening throughout the entire production line. From waste-derived fuels to synthetic alternatives, these ventures are demonstrating viable pathways to reduce aviation’s reliance on fossil fuels. For investors, SAF is evolving from an experimental niche into a strategically important and globally scalable market, with early entrants well-positioned to capture long-term value.
