French Startup Elyse Energy Secures $126 Million to Expand Sustainable Fuel Projects

Elyse Energy has announced a successful €120 million ($126 million) funding round to accelerate its e-methanol and sustainable aviation fuel projects in France and Spain. The Lyon-based company specializes in producing low-carbon fuels for the aviation and maritime sectors, aiming to cut reliance on fossil fuels and reduce emissions significantly.

“This fundraising marks a significant milestone for Elyse Energy and, more broadly, for the development of the European e-fuels industry,” said Pascal Pénicaud, President and Co-founder of Elyse Energy. “It reflects the growing demand for sustainable molecules and fuels from our clients in the industrial, maritime, and aviation sectors. The energy transition is accelerating, and we are proud to actively contribute to this transformation.”

The new funding will advance Elyse’s projects to their final investment decisions, paving the way for construction. When operational, these initiatives are expected to replace fossil fuels that produce roughly 700,000 tons of CO2 annually.

The financing round attracted new investors such as Dutch pension fund PGGM and Bpifrance, along with returning supporters Hy24 and Mirova. Hy24 increased its stake in Elyse via its Clean Hydrogen Infrastructure Fund, reflecting its focus on backing hydrogen-powered projects.

Pierre-Etienne Franc, Co-founder and CEO of Hy24, emphasized the importance of sustainable fuels: “The maritime and aviation sectors cannot achieve their transition without low-carbon hydrogen. The role of these molecules in our future energy mixes and for our industries is central. They will enable France to position itself as a strategic player at the heart of the European energy hub. We are proud to support entrepreneurs like Elyse Energy and the development of projects contributing to the collective effort toward greater energy sovereignty.”

With this funding, Elyse Energy is poised to scale its operations and contribute meaningfully to decarbonizing Europe’s energy-intensive industries.

Photo by Kristian Bocsi /Photographer: Kristian Bocsi