Lydian: Sustainable Aviation Fuel from CO2 & Electricity

The Future of Flight: Sustainable Jet Fuel Production

Jet fuel currently powers modern air travel, enabling both commercial and military aircraft to achieve remarkable feats of speed and distance.

However, the continued reliance on conventional jet fuel is facing scrutiny as global efforts to reduce greenhouse gas emissions intensify. Commercial aviation accounts for 2.5% of global carbon pollution, a percentage projected to increase as other sectors transition to electrification – a solution not readily applicable to long-distance flights.

Transforming CO₂ into Fuel

A potential solution lies in the creation of jet fuel derived from carbon dioxide. Several startups are actively pursuing methods to efficiently convert CO₂ into a high-energy hydrocarbon suitable for use in aircraft, aiming for a seamless substitution for existing fuel.

Overcoming the cost barrier associated with replacing inexpensive fossil fuels presents a significant challenge, one that has proven difficult for many companies to navigate.

Lydian’s Innovative Approach

Lydian, a pioneering startup, believes it has identified a viable path forward through a pragmatic strategy. As Joe Rodden, co-founder and CEO of Lydian, explained to TechCrunch, “Our focus isn’t necessarily on reinventing the underlying chemistry, but rather on drastically reducing the cost of the plant and equipment, and enabling flexible operation.”

Reducing equipment costs is a direct factor in lowering the overall price of Lydian’s e-fuel. Furthermore, the company leverages the fluctuating nature of renewable energy sources, specifically periods of exceptionally low pricing.

Lydian utilizes a highly effective catalyst to convert CO₂ and hydrogen into jet fuel and oxygen, capitalizing on temporary price reductions offered by the power grid. Rodden notes, “A reduction in power costs of up to 50% can be achieved by decreasing utilization rates by just 20% to 30%.”

Optimizing for Part-Time Operation

While operating equipment intermittently might seem counterintuitive to experienced plant managers, Lydian’s approach challenges conventional wisdom. Traditionally, industrial facilities operate continuously to maximize output from substantial capital investments.

“The chemical process industry has historically focused on optimizing plants for 24/7 operation,” Rodden stated. “However, when this assumption is removed, alternative conclusions emerge, such as the potential elimination of unnecessary components.”

Because Lydian’s reactors operate on a part-time basis, the company has successfully streamlined designs, removing complex parts that contribute to both material and manufacturing expenses.

Cost Competitiveness and Market Potential

Lydian anticipates producing e-fuel at a competitive price point compared to biofuels when electricity costs range from 3 to 4 cents per kilowatt-hour, a common rate for some solar and wind farms. Further cost reductions, potentially achievable by the end of the decade, could enable competition with traditional fossil fuels.

Market competitiveness will vary depending on the specific region. Europe’s pollution caps for airlines are expected to drive demand for biofuels and e-fuels, even at a premium. Smaller airports facing high fuel delivery costs may also opt to install Lydian reactors for on-site production.

Applications Beyond Commercial Aviation

The U.S. military, as the world’s largest consumer of fossil fuels, represents a significant potential market. Jet fuel constitutes a substantial portion of the military’s fuel consumption. While supply chain security isn’t a major concern within the U.S., forward operating bases in conflict zones face vulnerabilities.

Between 2003 and 2007, approximately 3,000 U.S. troops were killed or injured during water and fuel delivery operations. Rodden highlights, “In such scenarios, the willingness to pay can be virtually unlimited.”

Lydian envisions reactors generating fuel on-demand at military bases, powered by renewable sources like solar, wind, or nuclear energy. The company has received a grant from DARPA to further refine this technology.

Pilot Plant and Future Outlook

Lydian recently completed construction of a pilot plant in North Carolina, capable of producing up to 25 gallons of e-fuel daily. While this output is modest compared to the consumption of a Boeing 737-800 (which burns approximately 25 gallons every 90 seconds), it represents a 100-fold increase over the company’s lab production and a 10,000-fold increase from its initial output two and a half years ago.

The pilot plant will operate for several years to gather data, while Lydian concurrently develops a commercial-scale facility targeted for completion in 2027.

If Lydian maintains its current trajectory and the world successfully reduces its dependence on fossil fuels, e-fuels could become the dominant hydrocarbon fuel source for the future.