Dairy Biogas Breakthrough Could Fuel the Future of Flight

A California-based startup, Circularity Fuels, is making headway in an area long considered economically unviable: turning agricultural waste into a reliable source for sustainable aviation fuel (SAF). With more than 20,000 large-scale livestock farms in the U.S. generating nearly a trillion pounds of manure each year—and less than 6% of them capturing the resulting biogas—the untapped fuel potential is massive.

Circularity’s electric-powered Ouro Reactor converts raw dairy biogas into synthesis gas (syngas), a foundational component in SAF production. The system operates at roughly 1% the cost of conventional methane reformers, relying on modified components originally developed for the automotive sector. Unlike large-scale gas reformers that require significant upfront capital and industrial infrastructure, the Ouro system is compact, resilient, and capable of running on standard electrical connections.

With no need for clean feedstock or intensive gas pre-treatment, the Ouro handles raw, contaminated biogas without damaging system components. That reliability is essential for farm-based applications, where ease of use, uptime, and cost control drive feasibility. This approach reframes manure not as a waste liability, but as a localized energy opportunity—particularly for rural producers cut off from conventional pipeline networks.

Meeting Aviation’s Fuel Challenge with Distributed Production

The aviation sector faces a major supply gap, with SAF production currently meeting less than 1% of global demand. Regulatory pressures are mounting, and airlines are actively searching for scalable alternatives. Circularity Fuels' solution offers a potential answer.

Once the Ouro system produces syngas, it can be fed into the established Fischer-Tropsch process to create jet-grade hydrocarbons. This isn’t theoretical—Fischer-Tropsch synthesis is already used commercially to produce fuels from coal, natural gas, and biomass-derived syngas.

Circularity is banking on a distributed production model. Rather than concentrating SAF production at a few refineries, they envision smaller, modular plants co-located with waste producers. These facilities could generate fuel on-site and use existing truck or rail infrastructure to distribute it, avoiding the need for pipelines altogether. This model is particularly well suited for farms, landfills, and wastewater treatment plants—facilities that already generate biogas but have lacked a cost-effective way to monetize it.

According to internal projections, a nationwide rollout of biogas-to-jet fuel systems could produce up to 42 million gallons per day, potentially covering 70% of U.S. jet fuel demand. While those numbers are aspirational, the underlying market dynamics point to a real opportunity.

Commercial Outlook

With $8 million in funding from venture capital firms and public grants—including support from the National Science Foundation and the California Energy Commission—Circularity Fuels is preparing for its next major milestone: a full biogas-to-SAF demonstration at a California farm site later this year. Commercial deployment is slated for 2026, beginning in California and expanding to other markets.