OXCCU Secures $28M to Transform Aviation with Low-Cost Sustainable Fuel

October 3, 2025, 9:37 am
Hostplus
Hostplus
ContentFinTechHospitalityIndustryInformationPageRecreationRetirementServiceSports
Location: Australia, Victoria, Melbourne
Employees: 201-500
Founded date: 1987
Clean Energy Ventures
Clean Energy Ventures
EnergyTechTechnologyIndustryStorageDieselBatteryProductionMaterialsUtilitiesManufacturing
Location: United States, Massachusetts, Boston
Employees: 1-10
Founded date: 2017
Safran
Safran
AerospaceDefenseDeliveryDocumentsEquipmentLocalProductServiceSpaceSupply
Location: France, Ile-de-France, Paris
Employees: 10001+
Founded date: 2005
OXCCU
OXCCU
CarbonRecyclingChemicalsCleanTechClimateTechSustainableAviation
Location: United Kingdom
Total raised: $50.7M
OXCCU, an Oxford University spin-out, secured $28 million in Series B funding. This propels its single-step carbon-to-SAF technology. The innovative process converts waste carbon directly into sustainable aviation fuel, drastically cutting production costs. It addresses aviation's urgent decarbonization challenge. New and existing investors back this crucial climate tech solution, eyeing commercialization and global impact. Demonstration plants are scaling production, promising a more affordable, greener future for air travel and beyond.

The future of sustainable aviation just gained significant momentum. OXCCU, an Oxford University spin-out, recently closed an oversubscribed Series B funding round. It secured $28 million. This capital injection accelerates the company's pioneering work in Sustainable Aviation Fuel (SAF). The funding underscores a critical shift towards viable, cost-effective climate solutions. Aviation's decarbonization hinges on such breakthroughs.

OXCCU’s technology represents a major leap. It directly synthesizes jet-fuel-range hydrocarbons. This process uses gaseous waste carbon. A patented iron-based catalyst drives a single exothermic reaction. This method bypasses complex, energy-intensive steps common in other SAF production routes. Traditional pathways often involve reverse water gas shift or e-methanol synthesis. OXCCU eliminates these hurdles.

The simplification is key. It dramatically reduces both capital expenditure and operational costs. It also significantly lowers the carbon intensity of the resulting fuel. High production costs remain a primary barrier to widespread SAF adoption. OXCCU directly tackles this economic challenge. Affordable SAF is essential for industry-wide decarbonization.

Investor confidence in OXCCU is robust. The Series B round attracted a diverse group of new investors. Orlen VC, Safran Corporate Ventures, International Airlines Group (IAG), Hostplus, and TCVC joined. Existing supporters reaffirmed their commitment. Clean Energy Ventures, IP Group/Kiko Ventures, Aramco Ventures, Eni Next, Braavos Capital, and the University of Oxford continue their backing. This broad support highlights the technology's strategic importance. It confirms market readiness for transformative solutions.

The funding will fuel OXCCU’s commercialization efforts. It enables an expansion of operations. The next phase of technology scale-up is now within reach. The company is already making tangible progress. Its OX1 demonstration plant is set to launch at London Oxford Airport in 2024. This facility will validate the technology on a larger scale. A second demonstration plant, OX2, is under construction. It aims for full operation by 2026. These plants are crucial steps toward industrial deployment.

Regulatory frameworks increasingly support sustainable fuels. The UK SAF mandate and the European Union’s ReFuelEU initiative drive demand. Global efforts to reduce carbon emissions intensify. Yet, the high cost of SAF production persists. This economic barrier limits widespread adoption. OXCCU’s unique approach offers a compelling answer. It provides a credible pathway to lower SAF costs.

The patented catalyst is highly versatile. It operates effectively with various input gas compositions. This includes diverse mixes of carbon dioxide, carbon monoxide, and hydrogen. The flexibility allows for multiple feedstocks. Reformed biogas, gasified wood waste, and pure carbon dioxide combined with hydrogen can all be converted. This adaptability broadens the potential for sustainable fuel sourcing. It enhances the technology's long-term viability.

OXCCU's success reflects a broader trend in climate tech investment. Investors increasingly seek mature, de-risked technologies. These solutions must demonstrate a clear path to cost reduction and industrial scale. OXCCU, founded in 2021, quickly moved from lab to commercial demonstration. This rapid advancement stands out. It signals a shift in investment priorities within the clean fuels sector. The company’s trajectory outpaces many earlier-stage competitors.

International Airlines Group (IAG) views this investment strategically. The airline industry faces immense pressure to decarbonize. IAG committed to net-zero emissions by 2050. It aims to meet 10% of its fuel needs with SAF by 2030. Investments in innovative SAF production are vital for these goals. OXCCU’s cost-reduction potential aligns directly with airline sustainability targets.

Other strategic investors like Orlen also see the value. Orlen aims to be a leading SAF producer in Europe by 2035. Its investment in OXCCU supports this ambitious goal. Converting green hydrogen and carbon dioxide into synthetic aviation fuel aligns with energy transition strategies. Safran, a major aerospace component manufacturer, similarly supports de-risking and scaling promising SAF technologies. These partnerships validate OXCCU's impact.

The company's solution addresses both environmental and commercial needs. It provides a pragmatic approach to decarbonizing aviation. Its potential extends beyond aircraft fuel. The technology has applications in chemicals and plastics. This broader impact contributes to a more sustainable future across multiple industrial sectors. OXCCU positions itself at the forefront of the circular carbon economy. Its single-step process offers simplicity and efficiency. It promises to unlock affordable, sustainable energy pathways. This represents a critical step for global climate action.