Twelve announces $645 MM in funding to transform CO2 into jet fuel and electrochemicals at scale
Twelve, the carbon transformation company that converts captured carbon dioxide (CO2) into valuable chemicals, fuels and other essential products typically made from fossil fuels, has announced $645 MM in funding.
This raise is a strategic mix of capital which includes $400 MM in project equity led by TPG Rise Climate, $200 MM in Series C financing, and an additional $45 MM in credit facilities from leading funders in the renewable energy sector, marking this as one of the largest financing rounds to date in the e-fuels space.
AirPlant One under construction in Moses Lake, Washington (U.S.).
The funding accelerates Twelve's goals of defossilizing manufacturing processes, focusing first on emissions generated by aviation. This includes the completion of AirPlant™ One, Twelve's inaugural sustainable aviation fuel (SAF) plant located in Moses Lake, Washington, which is expected to begin production in 2025.
AirPlant One is the first of many facilities throughout the country to make E-Jet® fuel, using the company's patented technology to produce SAF derived from biogenic CO2, water and renewable energy sources that achieves lifecycle emissions up to 90% lower than conventional fossil jet fuel.
TPG Rise Climate has committed up to $400 MM in project equity financing to support the development of future AirPlants, which will supply Twelve's E-Jet fuel to customers like Alaska Airlines and International Aviation Group (IAG), parent company of British Airways. Launched in 2021, TPG Rise Climate is a $7.3-B climate impact fund by alternative asset manager TPG's global impact investing platform.
"We are drawn to companies and founders that have developed and proven unique solutions to complex problems. 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 energy transition will require a clean alternative to traditional jet fuel. SAF demand continues to grow, and we look forward to partnering with Twelve to build world class capabilities and facilities to meet that demand," added Elizabeth Stone, Principal at TPG Rise Climate and a member of Twelve's board of directors.
In addition to project equity financing, TPG is leading Twelve's Series C round alongside Capricorn Investment Group and Pulse Fund. Twelve has raised approximately $200 MM with Fifth Wall, northstar.vc, TGVP, Alaska Airlines' investment arm Alaska Star Ventures, and existing investors, such as Series B lead investor DCVC, Munich Re Ventures, Emerson Collective, and others.
"Over the last several years we have appreciated getting to know the team at Twelve. Together we are building a multi-level partnership to expand supply, mature the market for SAF, and to soon use their E-Jet fuel in our operations," said Diana Birkett Rakow, senior vice president of public affairs and sustainability at Alaska Airlines. "Twelve's technology is promising in the pursuit of long-term scalable supply of SAF. In order to meet our company's – and our industry's – ambitious decarbonization goals, we need new technologies like the one Twelve has developed and commercialized. We are excited to be part of this round of forward-looking funders to make a more sustainable future for aviation possible."
Most recently, Twelve also raised $45 MM in total loans across two lenders. Clean energy investment firm Fundamental Renewables provided a $25-MM construction loan, and multinational bank Sumitomo Mitsui Banking Corporation closed a $20-MM green loan in support of Twelve's carbon transformation technology.
"Our financing strategy has been to build a comprehensive capital stack that enables us to deliver product to customers at scale while continually driving down costs," said Nicholas Flanders, Chief Executive Officer at Twelve. "We're proud to work with visionary financing partners and collaborators who share our commitment to deploying first of a kind technologies that address climate change at scale."
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