OXCCU Secures £20.75 Million to Scale Sustainable Aviation Fuel

Core Insights - OXCCU, an Oxford University spin-out, has raised £20.75 million (approximately $28 million) in a Series B funding round to enhance the commercialization of its technology for converting waste carbon into sustainable aviation fuel (SAF) [1][5] - The funding round was oversubscribed, indicating strong investor interest and confidence in the company's technology and market potential [1] Funding Utilization - The new capital will be allocated to expand operations and advance the next phase of technology scale-up, including the development of a second demonstration plant, OX2, expected to be operational by 2026 [2] - This follows the launch of the OX1 demonstration plant at London Oxford Airport earlier in 2024 [2] Investor Participation - New investors in the funding round include Orlen VC, Safran Corporate Ventures, International Airlines Group (IAG), Hostplus, and TCVC, alongside existing investors such as Clean Energy Ventures, IP Group/Kiko Ventures, Aramco Ventures, and Eni Next [3] Technological Innovation - OXCCU's process utilizes an iron-based catalyst that allows for the direct synthesis of jet-fuel-range hydrocarbons from gaseous waste carbon in a single reaction, simplifying the production pathway and potentially reducing capital and operating costs [4][5] - The catalyst is designed to work with various feedstock compositions, including reformed biogas, gasified wood waste, and pure carbon dioxide with hydrogen, which may help drive down input costs [7] Market Context - The investment underscores the growing recognition of high production costs as a significant barrier to the widespread adoption of SAF, despite global mandates like ReFuelEU and the UK SAF mandate [5] - SAF is viewed as a critical component for decarbonizing the aviation sector [5] Strategic Alignment - For investors like IAG, the investment aligns with their environmental targets, aiming to source 10% of fuel needs with SAF by 2030 [6] - ORLEN's investment supports its strategic goal to become one of Europe's leading SAF producers by 2035 [6] Broader Implications - OXCCU's rapid progress is seen as reshaping the sustainable aviation fuel market, making it more affordable for the aviation industry to decarbonize [8] - The technology also has potential applications beyond aviation, including in chemicals and plastics [8]