Circularity Fuels Raises $7 Million Seed Round to Turn Dairy Biogas Into Jet Fuel

Circularity Fuels, a California startup converting cow manure gas into jet fuel, has closed a $7 million seed round led by Trucks and DCVC. Sum Ventures and Automotive Ventures also joined the round, which the company announced on Nov. 5.

The raise comes months after Circularity completed what it calls the world's first end-to-end conversion of raw dairy biogas into sustainable aviation fuel (SAF) — a milestone that moves the company from lab concept toward commercial production.

How the Technology Works

When dairy manure breaks down, it releases biogas — a mix of methane and carbon dioxide that is often vented or flared. Circularity's Ouro reactor converts that raw biogas directly into SAF using modular systems designed to sit on dairy farms themselves, rather than at a centralized refinery.

In June, the company finished a six-month pilot at a dairy near Madera, California. The fuel produced there was validated against ASTM D7566 Annex A1 specifications, the standard that governs synthetic jet fuel blending.

CEO Stephen Beaton framed the opportunity simply: "every dairy already has the feedstock."

What the $7 Million Will Fund

Over the next 18 months, Circularity plans to build a demonstration plant that produces jet fuel daily, complete engineering design for a commercial facility producing 75 barrels per day, and lock in the airline fuel contracts needed to begin construction. The company also intends to start licensing its Ouro technology.

Circularity's application for a U.S. Department of Agriculture Section 9003 loan guarantee has advanced to Phase 2 of review. The company projects commercial capital costs at roughly one-fifth of those for European jet fuel plants currently under construction.

DCVC managing partner Zachary Bogue said the company's approach turns wasted methane and CO2 into fuel with simple, affordable reactors, as reported by Biomass Magazine and other trade outlets.

Why It Matters

Sustainable aviation fuel still covers less than 1% of global jet fuel demand, and most U.S. supply today comes from used cooking oil — a feedstock that is limited and largely imported. Airlines facing decarbonization targets need new sources that can scale.

Livestock waste is a vast, mostly untapped option. Large U.S. livestock operations produce nearly a trillion pounds of manure a year, yet fewer than 6% capture the resulting biogas. Turning that waste into fuel on-site could give dairies a new revenue stream while cutting methane, one of the most potent greenhouse gases.

Price pressure adds urgency. U.S. jet fuel prices are up 75% this year following the outbreak of war in the Middle East, giving airlines a stronger incentive to diversify supply.

If Circularity can hit its 18-month milestones, the company will be positioned to raise construction capital for its first commercial plant — and test whether farm-scale fuel production can compete with the industry's large centralized refineries.

Source

World Bio Market Insights — "Circularity Fuels raises $7 M to turn dairy biogas into jet fuel"