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Scaling Energy & Electric Solutions

  • Writer: Catalyst
    Catalyst
  • 9 minutes ago
  • 3 min read

Twelve CEO Nicholas Flanders on the innovative partnerships and powerful economics accelerating supply chain decarbonization.



The global supply chain—from air cargo to last-mile delivery—is entering a phase of active strategic opportunity. The focus is no longer on if we must decarbonize, but on accelerating impact and maximizing effectiveness. Recent discussions at the Manifest conference in Las Vegas highlight a new reality where sustainability is moving beyond soft commitments and into the realm of integrated business strategy, driven by both technological innovation and compelling unit economics.


The path forward is two-fold, presenting distinct strategic opportunities in the aviation sector and ground logistics.


1. Scaling the Future of Flight: Strategic Opportunity in Sustainable Aviation Fuel (SAF)


The aviation industry presents a uniquely high-impact opportunity for decarbonization. As Ryan Spies, Managing Director of Sustainability at Alaska Airlines, noted, "Physics remains a formidable obstacle. Unlike an electric ground vehicle, a jet powered by batteries would be fighting a losing battle against weight from take-off to landing." Sustainable Aviation Fuel (SAF) is the primary, immediate, and long-term path forward.


The demand is undeniable: Alaska Airlines has seen 200% year-over-year growth in SAF demand from corporate customers, cargo partners, and even individual guests. The opportunity lies in solving the critical barriers of supply and cost.


The demand is undeniable: Alaska Airlines has seen 200% year-over-year growth in SAF demand from corporate customers, cargo partners, and even individual guests.

This is where innovative, long-term partnerships become the critical flywheel for market acceleration. Twelve's collaboration with Alaska Airlines and Microsoft serves as a blueprint. Sustainable aviation fuel producers like Twelve require partners to commit to long-term offtake, effectively co-investing in the technology's maturity to drive the necessary scale and steepest-possible cost curve.


Microsoft, acting as a Scope 3 offtaker, demonstrates the kind of corporate leadership that unlocks this transition. By putting capital into solutions for a high-impact sector—replicating the market-building strategies they employed for solar and wind power years ago—they incentivize the transition beyond the limited feedstock of used cooking oils and enable new, scalable technologies. This model is essential for unlocking the investment needed to move past the pilot stage and into full-scale commercial manufacturing.



2. Capturing Immediate Value in Ground Logistics: Sustainability as a Cost Advantage


In contrast to aviation, the electrification of ground logistics offers immediate economic value, proving that sustainability and low-cost operations can, and must, align. Mark Ang, CEO of Go Bolts, encapsulates this view: "Our view is that [sustainability] can't [come at a premium]."


The unit economics of electric vehicles (EVs) are already winning the argument, creating a clear operational advantage:


  • Fuel Cost Savings: Equivalent fuel costs are approximately 90% less on an EV versus a traditional internal combustion engine (ICE) vehicle.

  • Reduced Maintenance: Maintenance costs are reported to be 60% less for an EV fleet.

  • Financial Certainty: EV fleets offer the stability of lower, predictable operating costs, eliminating fluctuating fuel surcharges.


For logistics providers like Go Bolts, this means a sustainability-focused service is offered as a cheaper delivery solution for cost-sensitive businesses. This confluence of lower operational costs and a growing public interest creates a powerful, self-reinforcing flywheel effect.



3. Unlocking Investment: Engaging the Corporate Partner Ecosystem


Whether working on last-mile EV fleets or new SAF technologies, working with large corporations is crucial for unlocking the necessary capital.


“As Twelve's Co-Founder and CEO, I recognize it demands immense perseverance to navigate the multitude of stakeholders—sustainability, finance, procurement, and operations.” — Nicholas Flanders, Co-Founder and CEO of Twelve

The key is a focused strategy built on anchoring and aligning:


  • Anchor: Partner with the corporate's existing initiatives and public commitments—this is far more efficient than trying to create new ones.

  • Align: Secure buy-in by speaking the language of each stakeholder. This means framing the technology as a long-term cost-down curve to finance teams, demonstrating Scope 3 abatement to sustainability leaders, and proving operational sense to procurement and logistics groups.


The growing corporate demand for actionable, in-sector solutions is actively overriding hesitation caused by market and regulatory uncertainty. By demonstrating a credible, scalable technology and packaging it within a model that unlocks long-term investment, we can continue to propel the energy transition in the hardest-to-abate sectors.


The future of a decarbonized supply chain hinges on the belief that next-generation solutions can become cheaper, cleaner, and better—and the time to execute strategic investments is now.


Watch the full Scaling Energy & Electric Solutions session here.

 
 
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