Waste to Wings: Startup Secures Funding to Transform Biomass into Sustainable Aviation Fuel

NEW YORK, NY – November 18, 2025

Investing in a Circular Bioeconomy

Erg Bio, a California-based bioindustrial technology company, has closed a $6.5 million seed funding round led by Azolla Ventures, with participation from Chevron Technology Ventures and Freeflow. The investment underscores growing investor confidence in the potential of bio-based solutions to address climate change and enhance supply chain resilience. The company's core innovation, the Aspire™ Technology, aims to unlock the value of agricultural and forestry waste, converting it into sustainable aviation fuel (SAF) and critical chemicals. This funding will be instrumental in scaling their operations and validating the technology at a larger scale.

The Promise of Waste Biomass

The aviation industry faces immense pressure to reduce its carbon footprint. SAF is widely recognized as a key pathway to decarbonization, but its widespread adoption hinges on securing sustainable and cost-competitive feedstocks. Current SAF production largely relies on vegetable oils and fats, creating competition with food production and raising sustainability concerns. Erg Bio differentiates itself by focusing on waste biomass – agricultural residues, forestry waste, and even municipal solid waste – offering a truly circular and sustainable solution.

“The beauty of this technology is its feedstock flexibility,” explains an industry analyst familiar with the project. “Unlike some other processes that require specific types of biomass, Aspire™ can handle a wide range of materials, significantly reducing supply chain risks and opening up opportunities to utilize locally sourced waste.”

This feedstock agnosticism is a critical advantage. The U.S. alone generates over a billion tons of sustainable biomass annually, much of which currently ends up in landfills. Utilizing this waste stream not only reduces environmental impact but also creates new economic opportunities for farmers and rural communities.

How Aspire™ Technology Works

Erg Bio's Aspire™ Technology isn't simply another biomass conversion process. It represents a significant departure from traditional methods, emphasizing low-temperature processing and efficient sugar release. The core of the technology is a proprietary solvent system that gently breaks down the complex structure of biomass, unlocking fermentable sugars and lignin.

“The conventional approach often involves harsh chemicals and high temperatures, which can be energy-intensive and create environmental problems,” shares a researcher involved in related bio-refining research. “Erg Bio’s approach minimizes these issues and allows for the production of high-quality intermediates suitable for a variety of applications.”

The extracted sugars can then be fermented into SAF, while the lignin can be utilized as a building block for other bio-based chemicals, creating a cascade of valuable products. The company reports that their solvent recovery rate exceeds 99%, further minimizing environmental impact and operating costs. Furthermore, the process is engineered to be scalable, with the potential to be integrated into existing biorefineries or deployed as standalone facilities.

From Lab to Commercialization

The origins of Erg Bio are deeply rooted in scientific research. The company was spun out of the Lawrence Berkeley National Laboratory’s Joint BioEnergy Institute (JBEI), a leading center for bioenergy innovation. Blake Simmons, a co-founder and CTO of Erg Bio, previously held a leadership role at JBEI and brings extensive expertise in biofuels and bioprocess engineering. The ongoing collaboration between Erg Bio and JBEI demonstrates a commitment to translating cutting-edge research into real-world solutions.

“JBEI provides a unique ecosystem for innovation,” says a source close to the lab’s operations. “The ability to collaborate with world-class scientists and access state-of-the-art facilities is invaluable for companies like Erg Bio.”

With this new funding, Erg Bio plans to operate a pilot facility, validate its technology at a larger scale, and produce multi-kilogram batches of fuel and material intermediates. The company is also actively pursuing partnerships with airlines and chemical companies to secure offtake agreements and build a sustainable supply chain. The Department of Defense has also awarded Erg Bio a grant to further advance its Aspire™ Technology to a pre-pilot scale, highlighting the strategic importance of sustainable fuels for national security.

The company anticipates that its technology can play a significant role in achieving net-zero emissions targets in the aviation industry and beyond. As demand for sustainable fuels and chemicals continues to grow, Erg Bio is poised to become a leading innovator in the bioindustrial sector.