Japanese backers pile into Twelve's push to make jet fuel from CO2
What's the deal? Twelve, the California-based startup turning carbon dioxide into low-carbon fuels, has raised a late-stage venture round from a group of mostly Japanese investors. Development Bank of JapanDealroom has a profile for this one. Try Dealroom → joined alongside Mitsui & Co.Dealroom has a profile for this one. Try Dealroom →, Mitsui O.S.K. LinesDealroom has a profile for this one. Try Dealroom →, Toppan Global Venture PartnersDealroom has a profile for this one. Try Dealroom →, and Advantage PartnersDealroom has a profile for this one. Try Dealroom →.
Why now? Led by chief executive officer Nicholas Flanders, Twelve uses CO2 electrolysis and its OpusTM technology to transform CO2, water, and renewable energy into hydrocarbons. Its flagship product, E-Jet SAF, is a drop-in sustainable aviation fuel that works in existing aircraft with up to 90% lower lifecycle emissions than fossil-based fuel.
What it means? Twelve is building its first commercial demonstration-scale plant in Moses Lake, Washington, with operations planned to start in 2025. It has already signed offtake agreements with Alaska AirlinesDealroom has a profile for this one. Try Dealroom → and IAGDealroom has a profile for this one. Try Dealroom →, and the fresh capital supports that scale-up.
Why these investors? DBJ framed the deal as backing technology that could contribute to global decarbonisation. The involvement of shipping and trading giants Mitsui O.S.K. Lines and Mitsui & Co. signals strategic interest from Japan in securing sustainable aviation fuel supply.
What could go wrong? CO2 electrolysis is a hard technology to commercialise. While Twelve says the low-temperature process offers operational stability and adaptability to renewable energy, it remains unproven at industrial scale.
The signal: The SAF market faces a structural supply shortage as regulations and decarbonisation targets drive demand in hard-to-abate sectors like aviation. Japanese capital backing a US electrofuels startup underlines how the race to lock in future SAF supply is going global.
Read more: Startup Rise
Image credit: WaStateGov
