Rivan Industries, a London-based energy technology start-up, aims to produce synthetic natural gas at a lower cost than the United Kingdom currently pays for imported gas, offering a potential solution to the nation’s energy security challenges. Founded two years ago by Harvey Hodd, 30, the company has raised $47.5 million from investors including Stripe co-founders John and Patrick Collison, European venture fund IQ Capital, and Bolt founder Markus Villig.

Rivan plans to manufacture synthetic fuel using small-scale plants about the size of shipping containers, which use renewable electricity, rainwater, and carbon dioxide captured from the atmosphere. These plants employ an electrolyser powered by solar energy to split water into hydrogen, which is then combined with atmospheric CO2 in a reactor to produce synthetic natural gas. Because the carbon dioxide used is drawn from the air, the process is considered carbon-neutral, as burning the fuel releases the same amount of CO2 previously captured.

The company’s factory in Bermondsey, London, and a test site in Swindon are currently demonstrating the feasibility of this approach. Rivan reports it has already injected synthetic gas into the national grid and is preparing to scale production, with plans for 50 such facilities across Britain and Europe. Each plant is intended to be co-located with a solar farm to ensure access to cheap, renewable electricity—the key to keeping costs low.

Hodd asserts that Rivan’s integrated approach—designing, manufacturing, and owning both the fuel-making hardware and the solar power supply in-house—enables them to deliver synthetic gas at prices significantly below current market rates. He suggests the company could produce synthetic gas for between €10 and €20 per megawatt hour, compared to the £95 per megawatt hour cost of importing natural gas into Europe amid recent geopolitical tensions such as the conflict involving Iran and ongoing disruptions stemming from the invasion of Ukraine.

This approach, if successful, could benefit sectors that are difficult to decarbonize, including heavy industry, aviation, steel manufacturing, cement production, chemical companies, airlines, and data centers. One advantage of Rivan’s synthetic gas is its compatibility with existing infrastructure; it can be transported and used through the current gas pipeline network without requiring costly new equipment.

While industry experts have expressed skepticism about the economic viability of synthetic fuels given the energy-intensive production processes, Rivan plans to prove its model by scaling from its first 50 plants, with long-term contracts already in place. The company also envisions expanding into other synthetic fuels, such as diesel and jet fuel, in the future.

Hodd emphasizes that addressing energy security and cost is vital for the UK’s transition to net zero emissions. He states the company’s next phase involves moving beyond initial hardware deployment to large-scale production, aiming to demonstrate a scalable, cost-effective alternative to traditional gas imports and North Sea extraction. Plans are underway for a second, larger factory to accelerate production, with projections to manufacture one plant per week.