Dairy waste turned into sustainable jet fuel

June 16, 2026

A California-based clean energy startup has successfully demonstrated a new method for producing sustainable aviation fuel (SAF) from agricultural waste, offering a potentially more affordable solution for reducing emissions in the aviation sector.

Circularity Fuels announced the completion of what it describes as the first fully integrated project to convert raw agricultural biogas directly into sustainable aviation fuel. During a six-month pilot program, methane-rich biogas generated from dairy farm manure was transformed into aviation-grade fuel that meets ASTM standards required for commercial flights.

The breakthrough could significantly lower the cost of SAF production. According to the company, future commercial facilities using its technology may be built for approximately 20% of the cost of comparable sustainable fuel plants currently under development in Europe.

Converting dairy farm waste into aviation fuel

The pilot project was carried out at a large dairy farm near Madera, California, which houses more than 5,000 cattle. Like many livestock operations, the farm uses manure digesters to produce biogas. However, a substantial portion of this gas is often underutilized or released into the atmosphere.

Circularity Fuels developed a system that converts this waste-derived biogas directly into sustainable aviation fuel at the source. The demonstration operated continuously for several thousand hours using untreated biogas consisting of approximately 65% methane and 35% carbon dioxide. The resulting fuel can be blended with conventional Jet-A aviation fuel at concentrations of up to 50%.

The technology relies on two compact, modular reactors designed for deployment in agricultural regions. An electrified bi-reforming reactor converts raw biogas into synthesis gas, while a Fischer-Tropsch reactor transforms that gas into liquid hydrocarbons suitable for jet fuel production.

During testing, the company reported methane conversion rates exceeding 98% and carbon dioxide conversion rates above 90%, highlighting the efficiency of the process.

A more affordable route to sustainable aviation fuel

Global demand for sustainable aviation fuel continues to rise, yet production remains limited. SAF currently accounts for less than 1% of worldwide aviation fuel consumption, with most supplies derived from used cooking oils and other waste fats.

Industry experts have raised concerns about feedstock shortages and reliance on imported materials. Meanwhile, alternative technologies such as power-to-liquid e-fuels often face high production costs due to expensive renewable electricity requirements.

Circularity Fuels believes agricultural biogas can provide a scalable and economically viable alternative. The company estimates that commercial facilities could be developed for less than $100,000 per barrel of daily installed production capacity, making SAF produced from farm waste competitive with conventional fossil-based jet fuel.

Dr. Stephen Beaton, founder and CEO of Circularity Fuels, stated that the company’s primary challenge was demonstrating reliable, continuous production using real-world biogas sources rather than laboratory conditions. The successful pilot confirms the technology’s ability to operate using raw feedstock from an active dairy farm.

Carbon-negative fuel potential

One of the most significant advantages of the technology is its potential climate impact. Circularity Fuels’ life-cycle analysis indicates the fuel could achieve a carbon intensity score of negative 350.7 grams of CO₂ equivalent per megajoule under California's emissions accounting framework.

This exceptionally low carbon footprint is largely due to the capture and utilization of methane emissions from manure digesters. Methane is a highly potent greenhouse gas, with a warming effect significantly greater than carbon dioxide over shorter periods.

Industry specialists note that dairy farms have traditionally struggled to generate value from biogas without investing in costly gas-cleaning infrastructure. Circularity’s approach eliminates that requirement by processing raw biogas directly into finished aviation fuel on-site.

Commercial expansion plans

Following the success of the pilot project, Circularity Fuels plans to begin construction of its first commercial-scale facility in 2027. The company is focusing on dairy and agricultural regions throughout the United States while also evaluating expansion opportunities in Latin America and Europe.

If successfully scaled, the technology could help accelerate sustainable aviation fuel production, reduce methane emissions from agriculture, and provide farmers with a new revenue stream from agricultural waste, supporting both climate goals and rural economic development.