Oxford biotech firm HydRegen secures £2.6m investment

Published by

Sam Pither

Oxford-based biotechnology company HydRegen has secured a £2.6 million investment in its latest fundraising, led by clean-tech venture capital fund Clean Growth Fund.

HydRegen has been developing bio-based catalysts that enable cleaner, safer and more energy-efficient manufacturing processes for the global pharmaceutical and chemicals industries since it was spun-out from the University of Oxford in 2021, led by Dr Holly Reeve (CEO) and Dr Sarah Cleary (Chief Scientific Officer).

HydRegen aims to deploy its biotechnologies to enable the transition to a low-carbon economy with more sustainable and efficient chemical manufacturing processes: a key reason for Clean Growth Fund’s investment.

The new investment from Clean Growth Fund, alongside a group of existing investors, will support the commercial development and deployment of HydRegen’s technologies through the next 18 months.

HydRegen was supported by Taylor Vinters (legal team) as well as by their existing investors: UK Innovation & Science Seed Fund, Oxford Technology Management, Oxford University Innovation. They were also supported by its Board Members, including Chairman Will Barton.

HydRegen plans to license its technology to companies manufacturing pharmaceutical and chemical products around the world. To do this, it also plans to expand its team over the next 12 months.

HydRegen can reduce the carbon footprint and operating costs of the chemical manufacturing and pharmaceutical industries by replacing toxic metal catalysts, which come with a high economic, environmental and social cost, with environmentally and economically friendly bio-based alternatives. In doing so, HydRegen also reduces the environmental impact of chemical manufacturing, by reducing the temperatures and pressures required in chemical syntheses.

Analysis by Clean Growth Fund suggests that replacing a first target process, Paracetamol production, with HydRegen’s biotechnology approach would save hundreds of thousands of tonnes of CO₂e per annum. If broadly adopted by the pharmaceutical and chemical manufacturing industries, its technology would save millions of tonnes of CO₂e annually.

Dr Jonathan Tudor, Investment Partner at Clean Growth Fund said: “The potential for HydRegen to revolutionise and decarbonise the chemical and pharmaceutical sectors is off-the-scale, and we are understandably excited about the company’s future.”

“HydRegen is in Clean Growth Fund’s investment sweet spot: a proven clean-technology – originated in the UK, with huge potential to reduce greenhouse gas emissions – millions of tonnes of CO₂ can be saved per year if adopted in multiple processes, a sizeable market opportunity and a first-class team, led by Holly Reeve and Sarah Cleary.

“With the support of Carbon Limiting Technologies, our sister company, Clean Growth Fund is looking forward to working with the HydRegen team in realising their ambitions.”

Dr Holly Reeve, CEO of HydRegen said: “The HydRegen Team are hugely excited to embark on the next stage of our journey and to add Clean Growth Fund’s considerable expertise in cleantech to our commercial strategy.

“This funding will speed up development of our greener and less wasteful bio-based manufacturing technologies, allowing us to help chemical companies to reduce their environmental impact and carbon footprint, whilst also reducing their costs.

“HydRegen’s vision is to become part of the ‘advanced manufacturing tool-box’ across the global chemical manufacturing industry, enabling companies to meet their Net Zero goals.”

Sam Pither

Sam is the Regional Editor of Biz News, responsible for both Hampshire and Dorset. A new recruit to journalism, Sam started writing for the Business Magazine as a freelancer in May of 2022 after completing his degree in English at University College London. His passion for local businesses and ability to tell a story soon caught the attention of the publication’s management team and have led to his meteoric rise. Sam, who lives in central Reading, takes a particular interest in technology, gaming and food and drink, having been a chef before starting his degree.