OXCCU, a spin-out from the University of Oxford specializing in innovative carbon recycling technologies, has announced the successful completion of a £20.75 million ($28 million) Series B funding round, which was oversubscribed. This funding round attracted a diverse group of new investors, including Orlen VC, Safran Corporate Ventures, International Airlines Group (IAG), Hostplus, and TCVC. Additionally, OXCCU continues to enjoy the support of existing investors, including Clean Energy Ventures, IP Group/Kiko Ventures, Aramco Ventures, Eni Next, Braavos Capital, and the University of Oxford itself.
This substantial injection of capital is poised to significantly accelerate OXCCU’s commercialization efforts in the sustainable aviation fuel (SAF) sector. The funds will facilitate an expansion of the company’s operations and aid in advancing its next phase of technology scale-up, which is critical for bringing its innovative solutions to market. The company’s OX1 demonstration plant, slated to launch at London Oxford Airport in 2024, aims to validate its technology on a larger scale. Simultaneously, the construction of the second demonstration plant, known as OX2, is already in progress, with plans to have it fully operational by 2026.
This funding announcement arrives at a time of increasing regulatory support and a growing market demand for sustainable fuels, as governments and organizations worldwide seek to reduce carbon emissions. Notably, initiatives such as the UK SAF mandate and the European Union’s ReFuelEU aim to encourage the adoption of sustainable fuel technologies. However, one of the most pressing challenges faced by the industry is the high cost of SAF production, which serves as a significant barrier to widespread adoption.
The recent funding round underscores an emerging consensus among investors and stakeholders that reducing the costs associated with SAF production is essential for achieving large-scale decarbonization in aviation. OXCCU has developed a unique approach to simplify the production pathways for SAF by eliminating the intricate processes typically involved, such as the reverse water gas shift or e-methanol synthesis. Instead, the company’s patented iron-based catalyst allows for the direct synthesis of jet-fuel-range hydrocarbons from gaseous waste carbon in a single exothermic reaction. This innovative method not only streamlines the production process but also reduces both capital and operating expenses while significantly lowering the carbon intensity of the resultant fuel.
OXCCU’s catalyst is designed to be highly adaptable, effectively operating with a diverse array of carbon dioxide, carbon monoxide, and hydrogen input gas compositions. This versatility enables the catalyst to efficiently convert various feedstocks, including reformed biogas, gasified wood waste, and even pure carbon dioxide in combination with hydrogen, into sustainable fuels.
Ultimately, OXCCU’s solution addresses both the environmental imperatives and commercial necessities of the current energy landscape. Its technology has potential applications that extend beyond the aviation sector, impacting industries such as chemicals and plastics, thus contributing to a more sustainable future across multiple sectors.
KEY QUOTES:
“In a market where capital is tight and investors are rightly selective, this raise is a testament to the strength of our science, the clarity of our mission, and the urgency of the problem we’re solving. What we’re seeing is that serious players with truly distinctive technologies are still getting funded.”
“This is a critical time for climate tech, as the urgency continues to increase. Aviation needs a solution, and the serious lever is SAF. The challenge is SAF cost and that is exactly what we are addressing at OXCCU.”
Andrew Symes, CEO of OXCCU
“We recognise the need for the world to achieve net zero emissions by 2050 and for the aviation sector to play its part and to develop sustainably. IAG has been a leader in the sector, being the first airline group globally to commit to net zero by 2050. We are further committed to our goal of meeting 10% of our fuel needs with SAF by 2030. Meeting these goals will be supported by this investment into OXCCU which is part of our strategy of developing new partnerships to produce next-generation fuels.”
Jonathon Counsell, Group Sustainability Director at International Airlines Group (IAG)
“We invest in the technologies of tomorrow to effectively transform our business. This year, we introduced SAF—sustainable aviation fuel produced from renewable and waste raw materials—into our offering. In line with our strategy, by 2035 we aim to become one of the leading producers of SAF in Europe. Supporting the achievement of this goal is a new investment by ORLEN VC in the technology of OXCCU, a company enabling the conversion of green hydrogen and carbon dioxide into synthetic aviation fuel. Its commercialization will strengthen our market competitiveness and support our pursuit of carbon neutrality.”
Ireneusz Fąfara, President of the Management Board of ORLEN
“At Safran, we are committed to advancing the decarbonization of aviation. In addition to the development of new technologies in our own products such as engines and aircraft equipment, we are also supporting the de-risking and industrial scale-up of the most promising sustainable aviation fuel technologies.”
Nathalie Stubler, Safran Chief Sustainability Officer
“OXCCU stands out not only for its differentiated technology but also for the speed of its progress toward commercial plants. In just a few years, the company has advanced from the lab to a commercial demonstration facility, proving that waste carbon and hydrogen can be converted directly into jet fuel at low cost. That rapid progress is reshaping the sustainable aviation fuel market, unlocking the affordability aviation needs to decarbonize. With the extraordinary leadership team and support of its strategic investors, we are confident OXCCU will lead the decarbonization of fuels and chemicals in the coming years.”
Daniel Goldman, Managing Partner and Co-founder of Clean Energy Ventures
“This round is a significant milestone, not just for the Company, but for the sector – significant capital being put to work from established industry actors on a credible path to fully decarbonise aviation. OXCCU showcases the UK’s ability to lead in climate innovation, turning world-class science into global solutions, while generating jobs and lasting impact. We’re proud to continue to support the company as it scales its compelling single-step technology.”
Dr Robert Trezona, Partner, Cleantech at IP Group
