Sustainable Aviation Fuel (SAF) is the linchpin of decarbonizing air travel, but current production methods face a fundamental bottleneck: scalability. Hydroprocessed Esters and Fatty Acids (HEFA), the leading SAF pathway today, is constrained by limited feedstock availability, making it impossible to meet the aviation sector’s soaring fuel demand by 2030.
Power-to-Liquid (PtL) presents a scalable, feedstock-independent alternative. It leverages captured CO₂, renewable electricity, and green hydrogen to produce synthetic jet fuel.
However, PtL’s widespread commercialization has been hindered by high production costs, infrastructure challenges, and the need for low-cost renewable power.
Despite these hurdles, recent innovations are bringing PtL closer to large-scale viability. Companies like Lydian Labs, Infinium, Norsk e-Fuel, and INERATEC are deploying modular, cost-efficient PtL solutions, reducing capital intensity and accelerating deployment. Their breakthroughs signal a shift that could redefine SAF production and put aviation on a true path to net zero.
This report explores the latest advancements in PtL, the key commercialization challenges, and the emerging opportunities that could make synthetic fuels the dominant SAF pathway.
Notable Power-to-Liquid Innovations for SAF Production
1. Lydian Labs is making the Power-to-Liquid technology portable
| Founding Year | 2021 |
| Headquarters | Cambridge, Massachusetts, United States |
| Funding | $18 million in seed funding |
| Key Innovation | Technology for producing low-cost SAFs using renewable resources |
| Website | lydianlabs.com |
| Funding | Received U.S. government funding |
| IP coverage | US20240042412A1, CL2023003029A1, EP4323305A1, CN117693486A, KR20240007752A, AU2022258837A1, CA3215492A1, JP2024517402A |
Conventional Power-to-Liquid plants require significant infrastructure, which makes deploying in remote areas challenging.
In 2024, Lydian Labs demonstrated its modular PtL technology that solves this problem. This system was powered using captured CO2, solar, and nuclear power.
Their modular design enables rapid deployment, reducing the high capital costs that usually hold back SAF plants. Their process adapts to fluctuating inputs, allowing flexibility in operation and reducing dependency on raw materials.
In January 2025, the company showcased its SAF technology at RTI International, an independent nonprofit research institute in North Carolina, US. This pilot plant can produce up to 25 gallons of fuel per day.
The company aims to launch its first commercial-scale demo plant in 2027. A full-scale production facility is planned for 2030, with a 20 million-gallon SAF production goal. Their jet fuel alternative aims to cut related emissions by up to 95%, which will significantly help aviation leaders in their decarbonization initiatives.
2. Infinium’s Patented Power-to-Liquid Technology is gaining more investors.
| Founding Year | 2020 |
| Breakthrough | Successfully commercialized PtL technology for producing eSAFs using renewable energy (Patent: US12103897B2) |
| Recent Activity | In January 2025, it acquired Greyrock Technology, a leader in Gas-to-Liquid (GTL) conversion, strengthening its e-fuel portfolio. |
| Investor Backing | Secured funding from Amazon, Mitsubishi, and Brookfield Corp, signaling strong industry confidence. |
| Website | infiniumco.com |
| IP coverage | The company has secured patent grants across the US, JP, CA, and AU jurisdictions. |
Infinium’s Power-to-Liquid Technology produces ultra-low carbon eFuels. Their PtL plants are designed to handle fluctuating renewable energy inputs, making them suitable for integration with variable renewable energy sources. They can quickly start up and shut down, ensuring efficient operation.
The eFuels produced by Infinium’s PtL technology are drop-in ready, meaning they can be used in existing engines and infrastructure without modifications. This makes the transition to sustainable fuels seamless and cost-effective.
The technology has received significant funding and support, including a Series C investment led by Brookfield Asset Management. This funding supports the growth of Infinium’s project pipeline and market offerings in advanced energy solutions.
3. Norsk e-Fuel has developed Power-to-Liquid with lower power consumption
| Founded | 2019 |
| Breakthrough | Developed a cost-effective PtL process incorporating Co-electrolyzers that reduce energy consumption by 15% |
| Scalability | Set up plants across multiple European locations |
| Recent Activity | In January 2025, it signed a deal with Boeing to establish an industrial-scale PtL SAF production facility. |
| Technology Integration | It uses electrolysis tech from Sunfire and Direct Air Capture (DAC) from Climeworks |
| Website | norsk-e-fuel.com |
Norsk e-Fuel’s PtL technology generates green hydrogen using fossil-free power sources, such as wind or solar energy. The green hydrogen is then combined with recycled CO₂ captured from industrial processes. The resulting hydrocarbons are then refined into sustainable aviation fuel (SAF), also known as electro-SAF or e-SAF.
Their PtL technology reduces lifecycle greenhouse gas emissions by over 90% compared to conventional jet fuel. Norsk e-Fuel is developing one of Europe’s first industrial-scale PtL facilities. This will help increase the production and availability of SAF in the Nordics and globally.
4. INERATEC is set to commission the first industrial-scale Power-to-Liquid plant in Europe by 2025
| Breakthrough | Developed a modular PtL system that adjusts to fluctuating input conditions, reducing costs. |
| Recent Activity | In January 2025, it secured a €70M investment from the European Investment Bank (EIB) and Breakthrough Energy Catalyst. |
| Expansion Plans | Set to commission Europe’s largest e-fuel plant this year |
| Website | ineratec.de |
| IP coverage | EP4237513A1, US20230383193A1, CA3195310A1, JP2023549739A, AU2021370113A1, CN116507704A. |
INERATEC has implemented industrial-scale PtL plants, showcasing the technology’s effectiveness in producing sustainable fuels. These plants are operational and contribute to the production of CO2-neutral fuels. The technology has received significant funding and support, including a €3.4 million funding commitment for the RePoSe e-fuel project in Hesse, Germany. This project aims to produce at least 200,000 metric tons of sustainable kerosene annually for German air traffic by 2030.
The Main Challenge in Power-to-Liquid Commercialization
Despite its potential, Power-to-Liquid technology has high production costs. Its costs are estimated at $3.5-5 per liter compared to conventional jet fuel, which costs approximately $0.5-0.6 per liter. The main reason is the limited supply of renewable electricity and carbon capture infrastructure.
If electrolysis for hydrogen production relies on fossil fuel-powered electricity, the net CO₂ reduction is compromised. Therefore, the scalability of PtL hinges on the availability of low-cost, renewable energy-driven hydrogen production. This is why the innovations above are critical for this technology’s progress.
Market Dynamics and Future Outlook
As regulatory pressures increase and technology costs decrease, early movers in this space will capture significant market share in the emerging sustainable aviation fuel economy. This sector is witnessing increased collaborations between technology providers and aviation industry leaders. Recent partnerships indicate a clear industry preference for PtL-based SAF solutions:
- Boeing’s strategic investment in Norsk e-fuel
- DHL’s partnership with Cosmo Oil
- Multiple European aviation companies securing long-term SAF supply agreements
Two critical areas present significant opportunities for industry stakeholders:
- Low-cost carbon capture technology development
- Efficient green hydrogen production systems
These technological convergence points represent key investment and innovation opportunities as the industry scales toward meeting 2030 SAF mandates.
GreyB’s analysts found that ExxonMobil alone accounts for nearly 50% of carbon-reducing innovations, backed by an investment of over $15 billion in relevant technologies. The company has already captured 120 million metric tons of CO₂, underscoring its leadership in the sector. Shell and Saudi Aramco are also actively advancing their carbon capture efforts.
Even with scaling efforts, PtL-based SAF remains 2-3x more expensive than conventional jet fuel. This is due to the high costs of renewable hydrogen and CO₂ feedstock. Several new electrolysis and direct air capture (DAC) technologies are emerging, but which ones offer real cost advantages?
Investing in the wrong technology can lead to high costs and limited scalability. To scale PtL successfully, you need novel technologies with proven commercial adoption, and significant funding support.
Get in touch with GreyB to identify the safest bets for cost-efficient PtL commercialization.
