French producer of sustainable fuels and low-carbon feedstock, Elyse Energy has just announced the raising of €120 million (USD$126 million) in financing for the acceleration of the e-methanol and sustainable aviation fuel (SAF) production projects it has undertaken in France and Spain. Those projects will be part of the portfolio of sustainable fuel projects pursued by Elyse in a quest to decarbonize aviation and maritime activities.
Established in 2020, based in Lyon, Elyse focuses on designing, building, and operating facilities for the production of sustainable fuels derived from low-carbon electricity. This means that, in addition to the use of recycled carbon from industry or biomass, it also focuses on producing hydrogen through water electrolysis. The funds raised in this latest round of financing will enable Elyse to take its most advanced projects to FID, which is a critical step before construction starts. This will also help the company consolidate and expand its growing project portfolio.
Once operational, the new projects in France and the Iberian Peninsula will provide green energy to replace fossil fuels, reducing around 700,000 tons of CO2 emissions annually. This will be in line with Elyse’s mission of supporting the transition to a more sustainable and energy-efficient future. The company’s President and Co-founder, Pascal Pénicaud, stated that this funding round marks an important step for Elyse and, by extension, for the emergence of the European e-fuels industry. He referred to the rising demand for sustainable molecules and fuels from the aviation and maritime industries, which demonstrates that the energy transition is indeed accelerating. Elyse is proud to be contributing actively to this transformation.
The funding round attracted a mix of returning and new investors. Returning investors included Hy24 and Mirova, while new investors included the Dutch pension investor PGGM and the French investment bank Bpifrance. Hy24, which has a solid portfolio in hydrogen-producing companies, further strengthened its commitment to Elyse by acquiring a stake in the company through its Clean Hydrogen Infrastructure Fund. This fund is a critical partner to the developers of advanced hydrogen projects in France and around the world, and hydrogen remains an important factor in attaining decarbonization objectives.
Hy24 Co-founder and CEO Pierre-Etienne Franc underlined the critical role that low-carbon hydrogen would play in the energy transition, especially in the maritime and aviation sectors. He noted that without the inclusion of low-carbon hydrogen, these industries cannot achieve their decarbonization goals and that these molecules are, therefore central to future energy mixes and industrial processes. Franc added that projects such as those of Elyse Energy help position France as a strategic player within the European energy hub that helps to advance the collective goal of greater energy sovereignty.
Elyse Energy recently secured funding at a time when the push for sustainable energy solutions is gaining momentum across Europe. Governments and industries that are looking to reduce carbon emissions and meet ambitious climate goals in the near future are fuelling the demand for alternative fuels such as e-methanol and SAF. Elyse is positioning itself as a key player in this transition by developing scalable and sustainable technologies that could replace traditional fossil fuels in energy-intensive sectors such as aviation and maritime transport.
The projects of the company aim at meeting the needs of various clients across industries and transportation as it seeks to provide critical low-carbon alternatives that will serve to decarbonize these hard-to-abate industries. Elyse’s focus on using recycled carbon and low-carbon electricity for fuel production makes its approach not only sustainable but also efficient in reducing the overall carbon footprint of its operations. As the energy transition continues to accelerate, Elyse’s commitment to advancing sustainable fuel solutions is positioning it as a major contributor to Europe’s broader efforts to achieve net-zero emissions.
Elyse Energy will now push its most advanced projects to meet the growing demand for sustainable fuels with the funds raised. The company is expanding its operations in France and Spain and is looking to play a key role in the transformation of the European energy landscape by helping industries reduce their carbon emissions while providing green energy alternatives that are both innovative and scalable.