Jet fuel is an incredible innovation, enabling commercial airplanes to transport hundreds of passengers across the globe and allowing military aircraft to consistently exceed the speed of sound.
However, the future of jet fuel is uncertain as global efforts intensify to reduce greenhouse gas emissions. The commercial aviation sector contributes 2.5% of total carbon emissions, a figure that is likely to increase as other industries transition to electrification, an infeasible option for long-haul air travel.
Nevertheless, if it becomes possible to manufacture jet fuel from carbon dioxide, the industry may find a way to continue.
A small number of startups are racing to develop a cost-effective, efficient method to harness electricity and convert CO2 into an energy-dense hydrocarbon that seamlessly integrates into an aircraft’s fuel system. However, finding a substitute for inexpensive fossil fuels presents a significant challenge, one many companies have yet to overcome.
One startup believes it has found a solution with a straightforward strategy. Joe Rodden, co-founder and CEO of Lydian, stated that their focus is not on overly complicated chemistry but rather on significantly reducing the costs of the plant and equipment while enabling flexible operations.
The initial component of this strategy—lowering equipment costs—directly influences the overall price of Lydian’s e-fuel. The latter aspect is more intricate, leveraging the unique nature of renewable energy: the availability of exceptionally low-cost electricity at times.
Lydian exploits these advantageous pricing scenarios by employing a highly efficient catalyst to convert CO2 and hydrogen into jet fuel and oxygen. This capability allows the company to take full advantage of transient reductions in electricity prices. Rodden mentioned that a reduction in operational time could decrease power costs by as much as 50% simply by cutting back 20% or 30% on usage.
For seasoned plant operators, intermittently operating equipment may not seem like the most lucrative practice. Industrial operations, such as those at Lydian’s facility, usually strive to function around the clock to maximise production from high-cost machinery.
Rodden indicated that the chemical process industry has excelled at optimising facility operations under a continuous model. However, when that assumption is challenged, alternative conclusions emerge; for instance, it may be possible to eliminate certain components that are unnecessary or costly.
As a result, Lydian’s part-time reactor operations have enabled the company to simplify its design, cutting down on expensive materials and manufacturing processes.
This innovative approach allows Lydian to manufacture e-fuel competitively with biofuels when electricity rates are in the range of 3 to 4 cents per kilowatt-hour, typical of specific solar and wind energy systems. If prices fall below that threshold, as anticipated by some forecasts for the end of the decade, they could potentially rival fossil fuel prices.
The level of competitiveness will vary based on the market Lydian targets. For example, Europe is actively capping airline emissions, which is likely to enhance the market for biofuels and e-fuels, even if they initially cost more than conventional jet fuel. Additionally, smaller airports facing hefty fuel delivery charges may opt to implement Lydian reactors to produce their own fuel.
Moreover, Lydian’s vision extends beyond commercial aviation. The U.S. military stands as the world’s largest single consumer of fossil fuels, with jet fuel accounting for a substantial portion of that. While securing fuel at U.S. bases is manageable, forward bases in conflict zones require supply shipments, creating a costly and vulnerable supply chain exposed to potential attacks. From 2003 to 2007, about 3,000 U.S. troops in Iraq and Afghanistan were injured or killed during fuel and water transport missions.
Rodden remarked that in this context, the military’s willingness to pay for fuel can be exceptionally high.
Instead of relying on lengthy supply chains, Rodden envisages Lydian reactors producing fuel on-site, powered by renewable energy sources such as solar, wind, or nuclear. The startup has been awarded funding from DARPA to advance this technology further.
Recently, Lydian completed the construction of a pilot facility in North Carolina capable of producing up to 25 gallons of e-fuel daily. While this output may seem minimal compared to a Boeing 737-800’s consumption of that volume every minute and a half, Rodden pointed out that it represents a 100-fold increase from their lab production and an astounding 10,000-fold increase since their inception two and a half years prior. They plan to operate the pilot for several years to collect data while simultaneously developing a commercial-scale plant, projected for completion in 2027.
If Lydian maintains this pace of progress and the global community reduces fossil fuel reliance, e-fuels could emerge as the last remaining hydrocarbon alternative.