Erg Bio Raises $6.5 Million to Scale Flexible Feedstock Technology

Erg Bio, a Dublin California company focused on biomass valorization and advanced bioindustrial processes, announced it has closed a $6.5 million seed round led by Azolla Ventures with participation from Chevron Technology Ventures, Freeflow, Plug and Play and strategic angel investors. The company said the capital will be used to scale its flexible feedstock technology platform, aimed at producing synthetic aviation fuels and inputs for high value chemicals.

The investment arrives as policymakers and industry set increasingly ambitious targets to reduce carbon emissions from aviation and chemical production. Aviation accounts for roughly two to three percent of global carbon dioxide emissions, and sustainable aviation fuel production remains a small fraction of total jet fuel supply. That gap is creating urgent commercial demand for technologies that can convert diverse biomass streams and waste feedstocks into liquid fuels and chemical precursors at scale.

Erg Bio positions its technology to address two core challenges. First, feedstock availability and price volatility have constrained many bio based fuel projects. A flexible feedstock platform that can process agricultural residues, municipal waste and other low value biomass could lower input costs and reduce exposure to single commodity swings. Second, feedstock flexibility can shorten the timeline to scale by enabling deployment in regions with differing biomass profiles, a critical factor for global aviation fuel markets.

The investor mix highlights how established energy firms and startup oriented funds are aligning on solutions that connect existing supply chains with emerging conversion technologies. Chevron Technology Ventures participation suggests an interest by major oil companies to secure access to lower carbon fuel pathways and potential offtake relationships as demand for sustainable aviation fuels grows. Plug and Play and Freeflow bring venture and accelerator experience that could help Erg Bio move from pilot to commercial demonstration.

At $6.5 million, the round is on the larger side for seed stage financings in climate and advanced bioindustrial sectors, reflecting investor confidence in modular technologies that can be integrated into existing industrial infrastructure. For Erg Bio, seed capital will likely be used to expand pilot operations, refine process economics and negotiate early commercial partnerships. Demonstrating consistent conversion rates and capex and opex that can compete with conventional refining will be the next critical milestones for the company.

The broader market backdrop is supportive. Governments in North America and Europe have enacted a mix of incentives and mandates to accelerate sustainable fuel uptake. Tax credits and blending targets create a clearer revenue pathway for developers, while corporate net zero commitments have increased industry willingness to pay premiums for lower carbon fuels. Yet significant scaling will be required. Current sustainable aviation fuel output is insufficient to meet projected demand as carriers and regulators push for higher blend rates over the next decade.

Erg Bio’s announcement is a reminder that the transition to lower carbon aviation and chemical manufacturing will be driven by a mix of technology innovation, feedstock sourcing solutions and capital from both venture and strategic investors. The next 12 to 24 months will test whether flexible feedstock platforms can deliver the cost, volume and reliability metrics necessary to move beyond demonstration projects and into mainstream supply chains.