Microsoft back sustainable jet fuel company Dimensional Energy

Microsoft will be backing the company that produces sustainable jet fuel, Dimensional Energy, as an investor in a $20 million funding round.

With the present climate crisis and the need to develop efficient alternatives is the most pressing problem facing many industries. In particular air travel, has been viewed (SAF) (SAF) - which has the potential to reduce greenhouse gas emissions by around 20% compared to conventional jet fuel - as a strategy to reach carbon reduction targets and meet corporate limits.

Enter Dimensional Energy. Based out of New York, the company makes use of carbon dioxide emissions as well as water to make sustainably-produced aviation fuel (SAF) and they are getting noticed - as the company announced today (Dec.12) that they have closed the $20 million deal within the Series A round of funding, which comprised Microsoft's Climate Fund.

The reason behind providing funds, senior director at Microsoft's climate innovation Fund Brandon Middaugh said in a statement:

"The world is in dire need of immediate and swift decarbonization throughout all sectors as well Dimensional Energy shows great promise as a cleaner and less carbon aviation option, as well as a reduction in industrial emissions,"

"Microsoft has been an early adopter of sustainable aviation fuel and regards this market as essential to global decarbonization, which is the reason Microsoft's climate change fund is a great supporter of Dimensional Energy's work as a direct equity investor."

In addition to the other investors headed by Envisioning Partners, were: United Airlines' sustainable flight fund, RockCreek's smart aircraft futures fund DSC Investment, Delek US, New York Ventures, and existing investors like Elemental Excelerator and Chloe Capital which helped raise the total to $28 million.

Speaking to TechCrunch, Dimensional Energy founder and CEO Jason Salfi said:

"The extraction and production of hydrocarbons have resulted in not only climate change, but also displacement of indigenous communities across the globe and a myriad of environmental disasters."

"Dimensional Energy makes a replacement for oil by utilizing carbon dioxide as well as water. Dimensional is dedicated to sourcing feedstocks which are in harmony with the environment and communities where plants are built."

Dimensional Energy on the rise

After this latest investment, the company announced plans to build a high-tech power-to-liquids fuel plant which will have the fuel supply coming from Lafarge's Richmond Cement Plant in British Columbia, Canada in cooperation with carbon capture business Svante.

The company's other plans include Dimensional Energy's first direct-to-consumer (BTC) along with BTB (BTB) items, which include a carbon-free surf wax, and an alternative to fats that are cruelty-free, specifically designed for for vegan food manufacturers.

The main customers of Dimensional Energy are airlines, freight companies and chemical companies. During this year, they secured an agreement with the maker of aircraft Boom Supersonic to sell 5 million gallons of SAF per year for Boom's flight testing program.

But, the balance between ensuring sustainability while also generating profits can be a challenge, however, Dimensional creates revenue through contract offtake agreements and is looking for long-term agreements with airlines and other specialist chemical companies.