Oxford spin-out OXCCU raises £18 million in funding to commercialize SAF; advised by Reading-based Osborne Clarke
OXCCU, a climate tech spin-out from the University of Oxford, completed a US$22.7 million (£18 million) Series A financing last month to commercialize its sustainable aviation fuel (SAF) in a deal advised by Reading-based law firm Osborne Clarke.
The company's SAF is created by combining captured carbon dioxide and renewably-sourced green hydrogen through a novel iron-based catalyst, resulting in a more cost-effective and decarbonised alternative to fossil-based jet fuel for commercial airlines.
The financing round was led by Clean Energy Ventures with participation from investors Aramco Ventures, Eni Next, the corporate venture arm of Italian energy company Eni, United Airlines Ventures Sustainable Flight Fund SM, and Braavos Capital alongside existing investor Kiko Ventures (IP Group’s cleantech investment platform), and University of Oxford. Trafigura, TechEnergy Ventures and Doral Energy-Tech Ventures also took part.
While the SAF market is still in development, jet fuel alternatives are already estimated to be costly as most synthesis processes from carbon dioxide require two capital intensive steps.
OXCCU's technology consolidates the traditional e-hydrocarbons production process from a two-step Reverse Water Gas Shift (RWGS) and Fischer Tropsch (F-T) reaction to a one-step catalytic conversion that offers a radically cost-effective solution.
The funds will allow the Oxford-based business to accelerate growth and its path to market by scaling-up its technology.
Daniel Goldman, co-founder and managing partner of Clean Energy Ventures, said in June: "OXCCU’s process is unique in the emerging SAF industry based on our evaluation of dozens of technologies.
"We see extraordinary potential for this technology to mitigate new aviation fuel production emissions at gigaton-scale in the near-future, and we are pleased to lead an extraordinary consortium of industry leaders to support the company in its commercialization and deployment."
Reading-based Osborne Clarke partner Rob Hayes said: "We were delighted to support the OXCCU on such a major fundraise from such a large syndicate of high profile investors.
"OXCCU’s technology is very exciting and will no doubt play a major role in decarbonisation and net zero initiatives for future global sustainability."
OXCCU was spun-out by scientists and technologists at the University of Oxford. Its mission is to address the rapidly growing market demand for fuels to meet SAF regulations as well as for the petrochemicals, surfactants, synthetic lubricants and plastics markets.
The company is headquartered in the UK, with operations at Begbroke Science Park, Oxford, and London Oxford Airport.
Osborne Clarke in Reading advised Oxccu.
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