Elyse Energy, a French producer of sustainable fuels and low-carbon feedstock, announced today that it has raised €120 million (USD$126 million) to accelerate development of its e-methanol and sustainable aviation fuel production projects in France and Spain. The projects will join a roster of existing Elyse sustainable fuel projects for use in the aviation and maritime sectors.

Founded in 2020, Lyon-based Elyse designs, builds, and operates facilities for the production of sustainable fuels derived from low-carbon electricity, as well as recycled carbon from industry or biomass, in addition to producing hydrogen through water electrolysis.

The company said that funds raised in this round will enable it to pursue the development of its most advanced projects to their final investment decisions (FID), a prerequisite for launching construction, while consolidating and expanding its project portfolio. When operational, these projects in France and the Iberian Peninsula will provide green energy to replace fossil fuels that generate some 700,000 tons of CO2 per year.

Pascal Pénicaud, President and Co-founder of Elyse Energy, said:

“This fundraising marks a significant milestone for Elyse Energy and, more broadly, for the development of the European e-fuels industry. It reflects the growing demand for sustainable molecules and fuels from our clients in the industrial, maritime, and aviation sectors. The energy transition is accelerating, and we are proud to actively contribute to this transformation.”

The financing round included investments from returning investors Hy24 and Mirova, in addition to new investors including Dutch pension investor PGGM, and investment bank Bpifrance.

Hy24, which has a significant portfolio in hydrogen-producing firms, strengthened its commitment to Elyse by acquiring a stake in the company through its Clean Hydrogen Infrastructure Fund, which serves as the reference partner for advanced hydrogen project developers in France and worldwide.

Pierre-Etienne Franc, Co-founder and Chief Executive Officer of Hy24, said:

“We must stay the course on French and European ambitions to decarbonize the maritime and aviation sectors, which cannot achieve their transition without low-carbon hydrogen. The role of these molecules in our future energy mixes and for our industries is central. They will enable France to position itself as a strategic player at the heart of the European energy hub. We are proud to support entrepreneurs like Elyse Energy and the development of projects contributing to the collective effort toward greater energy sovereignty.”