Sustainable fuels technology developer Circularity Fuels announced that it has raised $7 million in a seed funding round to advance the commercialization of its technology to convert dairy biogas into sustainable aviation fuel (SAF).

Fuel accounts for the vast majority of the aviation sector’s emissions. Generally produced from sustainable resources, like waste oils and agricultural residues, SAF is seen as one of the key tools to help decarbonize the aviation industry in the near- to medium-term. SAF producers estimate the fuels can result in lifecycle GHG emissions reductions of as much as 80% relative to conventional fuels.

Founded in 2023 by Dr. Stephen Beaton, California-based Circularity Fuels emerged from DCVC’s incubator program. The company develops technology to convert waste carbon streams, including agricultural biogas, into SAF and other low-carbon fuels, using modular, electrified reactors to transform methane and carbon dioxide into synthesis gas, which is subsequently processed into liquid fuels.

In June 2026, the company announced the world’s first end-to-end conversion of raw dairy biogas into SAF, following a six-month pilot project at a dairy near Madera, California. The company said that the resulting fuel met industry specifications for synthetic aviation fuel components.

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. That is the kind of hard engineering that changes the economics of an entire industry, and we’re proud to back them from incubation to their first commercial plant.”

The company said that the new capital will support an 18-month development program, including the construction and operation of a demonstration plant to produce jet fuel from biogas, completion of the engineering design for a commercial facility with a capacity of 75 barrels per day, and efforts to secure airline fuel supply agreements. Circularity Fuels added that it expects to break ground on its first commercial site in 2027, targeting agricultural biogas resources across the United States, Latin America, and Europe.

Additionally, Circularity Fuels said that it also plans to begin licensing its reactor technology to partners developing their own production facilities.

Beaton said:

“Every dairy already has the feedstock. What’s been missing is a way to turn it into jet fuel that makes economic sense for the farmer and the airline. This funding lets us run our process at demonstration scale and design our first commercial plant. And as fuel supply gets harder to count on, fuel made close to home from waste we already have is worth more than ever.”

The funding round was led by Trucks Venture Capital and DCVC, with participation from Sum Ventures and Automotive Ventures. The funding brings Circularity’s total capital raised to approximately $17 million, including nearly $7 million in grants from sources including as ARPA-E and the National Science Foundation.

Puneeth Meruva, Partner at Trucks Venture Capital, said:

“Circularity is going after a big, painful problem in a market that has watched a string of experiments fail to land at scale. It’s the first practical attempt to solve SAF’s unit-economics problems, and we look forward to supporting the Circularity Fuels team as they tackle the decarbonization of aviation.”