How Mexican startup PRECISE is betting on converting Tequila waste to SAF
A $300M gigafactory plans to convert agave waste into ethanol, tackling aviation’s SAF supply gap.
A Mexican biotechnology startup is transforming the massive waste stream from tequila production into sustainable aviation fuel (SAF), offering a potential solution for both the spirits industry's waste challenge and aviation's decarbonisation needs.
PRECISE, founded on a decade of research, has developed a bioprocessing technology that converts agricultural waste into ethanol for SAF. In an interview, co-founder Agustin Llab explained how microbial cell factories isolate molecules from biomass, creating a pathway for tequila waste to fuel planes.
The timing is significant—the global tequila market reached USD 10.53 billion in 2023 and is projected to grow at a compound annual growth rate of 9.5% through 2030, according to Grand View Research. This growth generates substantial waste, with approximately 50% of the agave plant's wet weight becoming agricultural waste in the form of leaves and bagasse.
"Every time someone drinks a bottle of tequila, they're responsible for 25 litres of wastewater and 6 kilograms of agave bagasse," said Llab. According to internal company data, the company's process can effectively mitigate 2.3 tons of CO2 for every ton of waste processed.
The technology leverages agave waste's rich composition of cellulose, hemicellulose, and lignin, which constitute about 50-80% of carbohydrates. These compounds can be broken down into glucose, fructose, and xylose—crucial components for ethanol production.
The roadmap to scaling up
Currently in the pre-seed stage and participating in a number of accelerator programmes, PRECISE is developing an ambitious expansion plan across three continents.
The company's flagship project is a planned $300 million "gigafactory" in Mexico that would produce up to half a million litres of ethanol, which would be convertible to approximately 10,000 barrels of SAF daily.
The facility would supply major aviation hubs, including Mexico City, Guadalajara, Los Cabos, and Puerto Vallarta.
Beyond Mexico, the company is scoping out projects near Barcelona, Spain, where it has put together a consortium and applied for EU grant funding, and in Mangalore, India, where government incentives for second-generation ethanol technology have created favourable market conditions.
A growing SAF supply gap
PRECISE’s plans come against a backdrop of increasing questions about aviation's ability to procure enough SAF to meet its needs. Recent IATA figures show SAF production reached 1 million tonnes in 2024, accounting for just 0.3% of global jet fuel production, with expectations to reach only 0.7% by 2025.
One of the most promising routes to increase SAF production is the Alcohol-to-Jet (AtJ) pathway, which turns ethanol into jet fuel. However, Llab noted that about 95-98% of global ethanol production is controlled by just three countries: the United States (mainly through corn ethanol) and Brazil, with Pakistan as the next largest producer.
"We're heading into a price shock for SAF," Llab warns, citing technology readiness levels and concentrated market control. "The reality is that SAF production comes with a cost, and ultimately, it's the end consumer who will pay."
Solving two problems with one solution
The focus on agricultural waste addresses a critical environmental challenge. Agriculture represents approximately 26% of global greenhouse gas emissions, and improper management of agave waste can potentially affect soil fertility and contaminate aquifers.
For PRECISE, the timing appears right. Major spirits manufacturers increasingly seek solutions for their waste streams, while airlines face mounting pressure to adopt sustainable fuels. The company's technology could offer a unique solution to both challenges, provided it can scale successfully from its current pre-seed stage to commercial operations.
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