The e-fuels startup Aether Fuels is securing $34.3 million in funding, according to a recent filing.

Aether Fuels has raised $30.4 million out of a targeted $34.3 million round, according to an SEC filing. The e-fuels startup focuses on creating fuel for aviation and maritime shipping by utilizing carbon dioxide and other waste carbon streams. This new funding would significantly boost the company's finances, which previously raised $8.5 million through convertible notes in late 2023.

Aether Fuels originated from Xora Innovation, a deep-tech incubator managed by Temasek. The company has been enhancing its technology since its inception. Aether Fuels claims that its technology can utilize carbon from various waste sources, including industrial emissions, landfill methane, and residual plant materials from farms.

Details on how Aether Fuels converts carbon dioxide into fuels are scarce, but a patent application from January indicates the company is investigating a method involving natural gas. This process involves gasifying solid waste, blending it with natural gas, and converting the mixture into a liquid fuel while capturing any waste carbon dioxide.

In February, Aether Fuels announced an agreement to access a gas-to-liquid program initiated by GTI Energy, a natural gas nonprofit. Airlines and maritime shipping companies have been exploring bio-derived sustainable aviation fuel (SAF) and e-fuels to reduce their carbon footprint. However, these initiatives are still in their early stages. For instance, the current production of SAF constitutes less than 0.1% of total usage, despite being a more developed industry compared to e-fuels.