OXCCU Raises $28M Series B to Scale Sustainable Aviation Fuel Technology from Waste Carbon
Key Insights
OXCCU (search), an Oxford University (search) spin-out, secured $28 million in Series B funding to commercialize its one-step process for converting waste carbon into sustainable aviation fuel (search).
The company's patented iron-based catalyst (search) enables direct synthesis of jet-fuel-range hydrocarbons from gaseous waste carbon, eliminating costly production steps and reducing capital costs.
New investors include major aviation players IAG Ventures (search), Safran Corporate Ventures (search), and Orlen VC (search), reflecting industry commitment to addressing high SAF production costs.
OXCCU (search), an Oxford University (search) spin-out developing breakthrough technology to convert waste carbon into sustainable aviation fuel (search) (SAF), has raised £20.75 million ($28 million) in an oversubscribed Series B funding round. The investment comes from major aviation and energy companies, signaling strong industry confidence in the company's approach to addressing one of aviation's most pressing challenges: the high cost of sustainable fuel production.
Strategic Industry Investment
The funding round attracted significant participation from aviation industry leaders, including new investors IAG Ventures (search) (the corporate venturing arm of International Airlines Group (search)), Safran Corporate Ventures (search), and Orlen VC (search). Existing backers Clean Energy Ventures (search), IP Group (search)/Kiko Ventures, Aramco Ventures (search), Eni Next (search), Braavos Capital, and the University of Oxford also participated in the round.
"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," said Andrew Symes, CEO of OXCCU (search). "What we're seeing is that serious players with truly distinctive technologies are still getting funded."
Revolutionary Single-Step Process
OXCCU (search)'s technology centers on a patented iron-based catalyst (search) that enables the direct synthesis of jet-fuel-range hydrocarbons from gaseous waste carbon in a single exothermic reaction. This approach simplifies SAF production pathways by eliminating the need for reverse water gas shift or e-methanol steps, which the company states reduces both capital and operating costs while decreasing the carbon intensity of the fuel.
The catalyst's versatility allows it to operate with a wide range of carbon dioxide, carbon monoxide and hydrogen input gas compositions, providing flexibility to efficiently convert different feedstocks including reformed biogas, gasified wood waste, and pure carbon dioxide with hydrogen.
Demonstration Plant Progress
The new capital will enable OXCCU (search) to accelerate commercialization efforts and advance its next phase of technology scale-up. The funding builds on the successful launch of the company's OX1 demonstration plant at London Oxford Airport in 2024. The company's second demonstration plant, OX2, is currently underway and will be fully operational in 2026.
Daniel Goldman, Managing Partner and Co-founder of Clean Energy Ventures (search), highlighted the company's rapid progress: "OXCCU (search) 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."
Industry Alignment with Decarbonization Goals
The investment reflects the aviation industry's urgent need for cost-effective SAF solutions to meet ambitious environmental targets. Jonathon Counsell, Group Sustainability Director at International Airlines Group (search) (IAG), explained the strategic rationale: "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 (search)."
Similarly, Ireneusz Fąfara, President of the Management Board of ORLEN, emphasized the technology's role in the company's expansion plans: "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 (search) in the technology of OXCCU (search), a company enabling the conversion of green hydrogen and carbon dioxide into synthetic aviation fuel."
Market Context and Regulatory Momentum
The announcement comes amid growing regulatory momentum and market demand for sustainable fuels, with mandates such as the UK SAF mandate and ReFuelEU driving adoption. However, high production costs remain a major barrier to widespread implementation, making cost-reduction technologies like OXCCU (search)'s particularly valuable.
Nathalie Stubler, Safran Chief Sustainability Officer, noted the company's commitment to advancing aviation decarbonization: "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 (search) technologies."
Beyond Aviation Applications
OXCCU (search)'s solution extends beyond aviation into chemicals and plastics applications, broadening its commercial potential. "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," Symes added, emphasizing the critical timing for climate technology solutions.
Dr Robert Trezona, Partner, Cleantech at IP Group (search), described the funding as "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."