Carbon transformation company Twelve has announced a $645 million funding round to advance its mission of reducing reliance on fossil fuels by converting captured carbon dioxide (CO2) into valuable products such as sustainable aviation fuel (SAF).
This includes $400 million in project equity led by TPG Rise Climate, $200 million in Series C financing and $45 million in credit facilities from leading renewable energy investors, marking one of the largest financial rounds in the e-fuels space.
The funding will be used to accelerate the construction and development of Twelve’s first SAF production facility, AirPlant One, located in Moses Lake, Washington.
Set to begin operations in 2025, AirPlant One will produce Twelve’s proprietary E-Jet fuel using CO2, water and renewable energy, reducing lifecycle emissions by up to 90% compared to conventional fossil-based jet fuels.
TPG Rise Climate’s $400 million equity financing is aimed at supporting the development of future AirPlants, which will supply E-Jet fuel to major customers, including Alaska Airlines and International Airlines Group (IAG), parent company of British Airways.
“Twelve is a clear leader in CO2 conversion technology, which is a core part of the power-to-liquids technology stack and the process we believe represents the long-term, scalable solution for SAF production,” said Jonathan Garfinkel, Managing Partner at TPG Rise Climate.
The demand for SAF is growing rapidly as the aviation industry seeks to decarbonise, and Twelve’s technology promises a scalable, clean alternative to traditional jet fuels. Elizabeth Stone, Principal at TPG Rise Climate, added, “We look forward to partnering with Twelve to build world-class capabilities and facilities to meet that demand.”
Twelve’s Series C round, also led by TPG, includes major investors such as Capricorn Investment Group, Pulse Fund and Alaska Airlines’ venture arm Alaska Star Ventures, alongside existing backers DCVC, Munich Re Ventures and others.
“Together, we are building a multi-level partnership to expand supply and mature the SAF market,” said Diana Birkett Rakow, Senior VP of Public Affairs and Sustainability at Alaska Airlines.
Twelve also secured $45 million in credit facilities, with Fundamental Renewables providing a $25 million construction loan and Sumitomo Mitsui Banking Corporation closing a $20 million green loan to support the company’s carbon transformation technology.
“Our financing strategy has been to build a comprehensive capital stack that enables us to deliver products to customers at scale while continually driving down costs,” said Nicholas Flanders, CEO of Twelve. “We are proud to work with visionary partners who share our commitment to deploying first-of-a-kind technologies that address climate change at scale.”
According to the International Air Transport Association (IATA), SAF has the potential to contribute up to 65% of the emissions reductions needed for aviation to reach these targets.
Global SAF production, which currently stands at around 300 million litres per year, is expected to surge to 30 billion litres annually by 2030 as airlines and governments increase investments in clean fuel technologies.
