Bill Gates-Backed Breakthrough Energy Leads $25M Round for Algae-to-Biofuel Startup

La Jolla, CA-based Algae biofuel company Viridos raised a $25 million Series A round of financing led by Bill Gates-led Breakthrough Energy Ventures, with participation from Chevron and United Airlines Ventures.

Globally, diesel and jet fuel account for over a third of the liquid fossil fuel used, according to the company. Viridos’ technology accelerates the amount of oil that can be produced from microalgae, which can then be used to develop sustainable aviation fuel, which according to current estimates is expected to have a 70% lesser carbon footprint compared to traditional aviation fuel. Uniquely, algae can be grown and harvested at scale without impacting the food chain.

“By establishing production sites to grow Viridos-engineered microalgae in saltwater, we are creating the foundation for a biofuel future that moves away from fossil fuels without competing for precious resources such as fresh water and arable land,” said Oliver Fetzer, CEO.

Despite the vast potential applications and total addressable market, many biofuel projects have yet to break even. Recent events have highlighted this, as Exxon Mobil Corp recently walked away from its landmark biofuel project and slashed support for Viridos, leading to significant layoffs.