Circularity Fuels raises $7M to turn dairy waste into jet fuel

What's the deal? Circularity FuelsDealroom has a profile for this one. Try Dealroom → has closed a $7 million seed round to build a demonstration plant for its technology that converts dairy biogas into jet fuel, chief executive officer Stephen Beaton told Axios Pro.

Why now? High jet fuel prices have renewed interest in domestically produced alternatives. The round follows a six-month pilot in which Circularity converted raw dairy biogas into jet fuel that met an ASTM fuel specification — a step beyond its 2025 demonstration of producing fuel precursors.

By the numbers: The seed round ranks in the top 7% of all US energy seed rounds on record, a sample of 3,180 deals.

What's the endgame? The money funds a demonstration plant, keeping the company at an early scale-up stage rather than commercial supply. Its appeal rests on a dairy-waste feedstock and a process it claims runs at a fraction of the capital cost of conventional methane reformers.

What could go wrong? This remains an early bet. Circularity's significance will depend on proving reliable output and viable economics at greater scale.

The signal: The waste-gas-to-sustainable aviation fuel (SAF) pathway is drawing interest. Singapore AirlinesDealroom has a profile for this one. Try Dealroom → agreed to buy up to 4,800 tonnes from Aether Fuels' planned facility from 2028, while UK startup Neela BiotechDealroom has a profile for this one. Try Dealroom → raised £2.1 million to move from lab work toward pilot trials. Circularity's dairy-waste angle stands out, but the field's promise hinges on scaling.

Read more: Axios

Image credit: USDAgov