Carbon transformation company with sights set on decarbonizing commercial aviation scales operations including construction on a first-of-a-kind sustainable jet fuel facility in Washington state.
BERKELEY, CA (September 19, 2024) — Twelve, the carbon transformation company that converts captured carbon dioxide into valuable chemicals, fuels, and other essential products typically made from fossil fuels, today announced $645 million in funding. This raise is a strategic mix of capital which includes $400 million in project equity led by TPG Rise Climate, $200 million in Series C financing, and an additional $45 million 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.
The funding accelerates Twelve’s goals of de-fossilizing 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 which achieves lifecycle emissions up to 90% lower than conventional fossil jet fuel.
TPG Rise Climate has committed up to $400 million 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 billion 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.
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
“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 approximately $200 million Series C round alongside Capricorn Investment Group and Pulse Fund. Fifth Wall, northstar.vc, Toppan Global Venture Partners, Alaska Airlines’ investment arm Alaska Star Ventures participated in the round as new investors. Existing investors DCVC, Munich Re Ventures, Emerson Collective, Microsoft's Climate Innovation Fund, Carbon Direct Capital, and Elementum vc also participated.
“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.”
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
Most recently, Twelve also raised $45 million in total loans across two lenders. Clean energy investment firm Fundamental Renewables provided a $25 million construction loan, and multinational bank Sumitomo Mitsui Banking Corporation closed a $20 million 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.”
Backing Twelve: Investor Perspectives
"At Pulse Fund, we are proud to co-lead this important Series C round alongside TPG Rise Climate and Capricorn Investment Group. Twelve’s pioneering CO2 conversion technology represents a significant leap forward in our shared mission to decarbonize industries on a commercial scale. We are confident that this partnership will be instrumental in driving the systemic change required to transition to sustainable fuels, especially within the aviation sector," Tenzin Seldon, Founder and Managing Partner of Pulse Fund.
“Using electricity to convert carbon dioxide into fuels and materials is the only solution we’ve seen that can scale large enough to truly ween the world off of its fossil fuel addiction," shared Greg Smithies, Investment Partner, Hardware and Materials at Fifth Wall. "While there is a lot of focus on fuels, what we forget is that much of our world is also made out of fossil fuels. From plastics, to paints, to insulation, to clothing. We’re excited to back Twelve for their ability to make those same materials in a carbon negative manner.”
“Our investment reinforces our dedication to decarbonizing global supply chains and advancing sustainable solutions at scale,” said Amir Karimpour, Managing Partner at northstar.vc. “We are excited to deepen our partnership with Twelve by leveraging our enterprise customer network, reflecting our ethos as a strategic investor,” added Erol Suesler, Partner at northstar.vc.
“DCVC has proudly backed Twelve since 2018, because the company’s ‘carbon transformation’ technology may prove dispositive in the fight against climate change,” said DCVC Managing Partner Zachary Bogue. “We back amazing teams attacking trillion-dollar problems whose practical solutions will improve the world: Twelve is scaling because it makes critically important drop-in replacements that are as easy to use as they are beneficial.”
“Sustainable fuels are needed to decarbonize one of the biggest sources of emissions globally, and we believe that Twelve has the fastest and most cost-effective way to get there,” shares Timur Davis, Investment Director at Munich Re Ventures. “We are proud to have backed the Twelve team across multiple rounds of funding in support of their ambitious vision.”
“Deploying carbon management technology requires growth capital at both the company level and the project level,” said Jonathan Goldberg, CEO of Carbon Direct Capital. “We are excited to see diverse capital partners all supporting Twelve’s mission.”