Berlin-based Spark e-Fuels has secured €2.3 million in pre-seed funding to develop technology that converts carbon dioxide and hydrogen into sustainable aviation fuel (SAF) using renewable energy sources such as wind and solar power. The investment marks a significant step forward in addressing one of the biggest challenges in the aviation industry’s transition to greener energy, reports Tech Funding News.
The aviation sector is under increasing pressure to reduce carbon emissions, yet existing solutions for SAF remain costly and difficult to scale. Spark e-Fuels has developed a process that overcomes the efficiency barriers of conventional methods by adapting to the fluctuating availability of renewable energy. This approach ensures that fuel production remains cost-effective and consistent, even when wind and solar power levels change.
With the new funding, Spark e-Fuels is focusing on two main objectives. The company is working on constructing its first e-fuel pilot plant to test the scalability of its technology under real-world conditions. It is also expanding its team to accelerate research and development efforts and move closer to full-scale commercial production.
The funding round was led by Nucleus Capital, with participation from Zero Carbon Capital, IBB Ventures, Chemovator, Voyagers.io, and 1.5° Ventures. Several high-profile angel investors, including former executives from Shell, Lufthansa, BP, Siemens Energy, and McKinsey, also backed the initiative. The investment underscores growing confidence in Spark e-Fuels’ ability to provide a viable SAF alternative at a time when aviation is responsible for 2-3% of global CO₂ emissions. Despite increasing demand for SAF, production capacity remains far below the levels needed to meet climate targets. The company’s modular technology is designed to bridge this gap by making large-scale SAF deployment both practical and cost-effective.
Founded in 2022 by Arno Zimmermann, Julia Bauer, and Mathias Bösl, Spark e-Fuels is tackling a fundamental problem in renewable fuel production. Conventional methods rely on a steady supply of electricity and hydrogen, making them expensive and inefficient when renewable energy generation fluctuates. The company’s approach removes this dependency by decoupling production steps, allowing for greater flexibility and lower costs.
While the primary focus is aviation, Spark e-Fuels’ technology has the potential to play a critical role in reducing emissions in other industries. The chemical sector, which is the second-largest industrial emitter of greenhouse gases after steel, faces a major challenge in transitioning to cleaner energy. As manufacturers move toward electrification, they must also address the variability of renewable power. Spark e-Fuels’ system offers a solution by enabling continuous industrial operations even when the energy supply is inconsistent.
Beyond investor confidence, Spark e-Fuels has received €300,000 in grants and was recently named a winner of the 2024 UpLink Sustainable Aviation Challenge by the World Economic Forum. The recognition highlights its role as a frontrunner in the push for greener aviation fuel solutions.
The company’s progress reflects the growing urgency for cost-effective and scalable SAF production. According to Mathias Bösl, CEO and co-founder of Spark e-Fuels, achieving sustainable aviation requires fuel solutions that can be produced efficiently at scale while remaining affordable. Investors share this perspective with Isabella Fandrych, General Partner at Nucleus Capital, emphasising that Spark’s demand-responsive approach has the potential to transform not only SAF production but also energy-intensive industries like chemicals.
