Top 7 Biofuel startups in USA

Jan 27, 2026
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1
Fulcrum Bioenergy
Funding: $281.2M
Fulcrum Bioenergy converts household garbage into low-carbon transportation fuels, including jet fuel, diesel, and ethanol.
2
LanzaJet
Funding: $277.5M
LanzaTech develops renewable jet fuel
3
Sierra Energy
Funding: $90M
Sierra Energy’s blast furnace heats trash to 4,000 degrees and then harvests the gas to make plastics and fuel.
4
Arbor Energy
Funding: $68.5M
A carbon removal and storage company delivering negative emissions energy. Arbor’s innovative system generates clean electricity transforming plentifully available organic waste—like overgrown brush, crop residues, and food waste—into fuel for an engine.
5
GreenFuel
Funding: $28.8M
GreenFuel Technologies builds algae bioreactor systems, which use recycled CO2 to feed the algae, which is then converted into biofuels; it uses the containers to carefully control the algae’s intake of sunlight and nutrients.
6
Inventure Chemical
Funding: $7M
Inventure Chemicals develops an ethanol and biodiesel conversion process by using a variety of raw materials including algae and agribusiness waste.
7
Spero Renewables
Spero Renewables is developing a "green chemistry" technology for converting plant waste into fuel. Unlike traditional biofuel production processes, which focus on cellulose, which can be fermented into ethanol, Spero focuses on lignin - biopolymer that helps trees grow tall and transport water from their roots to their crowns (known for its resistance to degradation). Lignin is typically burned to produce its calorific value during biomass processing, but Spero has found out how to break down lignin into its molecular components and produce biofuels compatible with gasoline and jet fuel, as well as building blocks that can be used in renewable plastics and renewable materials instead of petroleum products. The company has a partnership with energy giant Shell.
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Editor: Alexander Gillet
Alexander Gillet is a senior editor for EnergyStartups. He has a deep background in energy sector and startups. Alexander graduated from Emlyon Business School, a leading French business school specialized in entrepreneurship. He has helped several non-profit organizations dedicated to promoting environmental education and sustainability and has written over 250 articles on energy technology for various websites. In his free time, Alexander enjoys yoga, camping and exploring the Blue Ridge Mountains. You can contact Alexander at alexgillet(at)energystartups(dot)com