French Startup Elyse Energy Secures €120 Million for Maritime and Sustainable Aviation Fuel Projects

Elyse Energy, a trailblazing French startup specializing in sustainable fuels and low-carbon feedstock production, has successfully raised €120 million (USD $126 million) in a strategic funding round aimed at fast-tracking its e-methanol and sustainable aviation fuel (SAF) projects. This infusion of capital will enable Elyse to advance its cutting-edge projects in France and Spain, expanding its portfolio of sustainable fuel solutions tailored for the maritime and aviation sectors.

Founded in 2020 and headquartered in Lyon, Elyse Energy focuses on the design, development, and operation of facilities that produce sustainable fuels derived from low-carbon electricity, recycled industrial carbon, and biomass. The company is also pioneering hydrogen production through water electrolysis. This innovative approach aims to address the environmental challenges of high-emission industries by providing low-carbon, high-performance fuel alternatives to traditional fossil fuels.

The funds raised will enable Elyse to bring its most advanced projects to the critical Final Investment Decision (FID) stage, a key milestone in the development process that precedes the launch of construction. These projects, which span both France and the Iberian Peninsula, are expected to significantly impact global emissions by replacing fossil fuels with green alternatives. Together, they will offset approximately 700,000 tons of CO2 emissions annually, contributing to the global push for net-zero emissions in sectors that are notoriously hard to decarbonize, such as shipping and aviation.

Pascal Pénicaud, President and Co-founder of Elyse Energy, underscored the significance of this achievement, highlighting the growing demand for sustainable molecules across industries:

“This fundraising represents a crucial turning point for Elyse Energy and, more broadly, for the evolution of the European e-fuels industry. It reflects the increasing demand from clients in the industrial, maritime, and aviation sectors for sustainable fuels. The energy transition is accelerating, and we are proud to play an active role in shaping this transformation.”

The funding round saw strong participation from returning investors, including Hy24 and Mirova, as well as new partners such as Dutch pension investor PGGM and the French public investment bank Bpifrance. Hy24, with its extensive portfolio of hydrogen-focused investments, further strengthened its commitment to Elyse Energy by acquiring a stake through its Clean Hydrogen Infrastructure Fund, a key player in the development of advanced hydrogen projects both in France and internationally.

Pierre-Etienne Franc, Co-founder and CEO of Hy24, emphasized the importance of Elyse Energy’s role in advancing the decarbonization of both the maritime and aviation sectors, which remain critical challenges in Europe’s transition to clean energy:

“We must remain steadfast in our commitment to decarbonizing the maritime and aviation industries, which face significant barriers to transition without the use of low-carbon hydrogen and synthetic fuels. The future energy mixes of these sectors will rely heavily on the integration of these advanced molecules. Elyse Energy’s work is central to ensuring that France remains a strategic player within the European energy landscape, and we are proud to support their innovative projects that align with our vision for greater energy sovereignty.”

With the funds now secured, Elyse Energy is poised to expand its sustainable fuel production capacity and to meet the increasing demand for green energy alternatives in sectors where the transition to cleaner technologies is paramount. By driving forward the development of e-methanol and SAF, Elyse is not only advancing its mission to decarbonize the aviation and maritime sectors but also positioning itself at the forefront of Europe’s evolving energy ecosystem.