Circularity Fuels has secured $7 million in seed funding to scale its technology for converting dairy manure biogas into sustainable aviation fuel (SAF). Announced on 5 November 2026, the round was led by DCVC and Trucks Venture Capital, with participation from Sum Ventures and Automotive Ventures. The investment brings the California-based company's total funding to approximately $17 million, including nearly $7 million in grants, and will support the development of demonstration-scale fuel production and its first commercial facility.
Over the next 18 months, Circularity Fuels plans to build and operate a demonstration plant capable of producing jet fuel from biogas daily, complete engineering designs for a commercial facility with a capacity of 75 barrels per day, and secure airline fuel supply agreements. The company will also begin licensing its proprietary Ouro reactor technology to partners interested in developing similar facilities.
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The funding follows a six-month pilot completed in June 2026 at a dairy farm near Madera, California, where Circularity Fuels demonstrated converting raw dairy biogas into jet fuel meeting ASTM D7566 Annex A1 specifications. Its modular technology combines an electrified Ouro reforming reactor with an Aion Fischer-Tropsch synthesis reactor to convert methane and carbon dioxide from agricultural waste into liquid fuels. Circularity estimates that its commercial plants could require about one-fifth of the capital investment for comparable jet fuel facilities under construction in Europe, although this remains a company projection.
Dr Stephen Beaton, Founder and CEO of Circularity Fuels, said, "This funding lets us run our process at demonstration scale and design our first commercial plant." Zachary Bogue, Managing Partner at DCVC, said, "We backed Circularity because methane and CO2 are wasted today at nearly every dairy and landfill, and Stephen’s team turns both into jet fuel with simple, affordable reactors."
Circularity Fuels has also advanced to the second phase of the US Department of Agriculture's review process for a potential loan guarantee under its Section 9003 biorefinery program. The company will now focus on demonstrating continuous fuel production, completing commercial plant designs, and securing airline offtake agreements before beginning construction. The expansion could give dairy operators an additional revenue stream while supporting the development of alternative aviation fuel supplies.
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Ankit Palan is a Canada based writer who has been writing about sustainability for the past four years. He focuses on making topics like climate change, ESG, and responsible business easier to understand and more relatable. His work looks at how sustainability plays out in the real world, across businesses, finance, and everyday decisions, without overcomplicating it.
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