OXCCU, an Oxford University spin-out pioneering a one-step process to convert waste carbon into sustainable aviation fuel (SAF), has raised £20.75 million ($28 million) in an oversubscribed Series B funding round, according to AZO Cleantech.

The round attracted new investors including Orlen VC, Safran Corporate Ventures, International Airlines Group (IAG), and Hostplus, alongside continued backing from Clean Energy Ventures, IP Group/Kiko Ventures, Aramco Ventures, Eni Next, Braavos Capital, and the University of Oxford.

The funding will support OXCCU’s commercialization plans, expand operations, and advance the next phase of its technology scale-up. This follows the 2024 launch of the OX1 demonstration plant at London Oxford Airport, with a second plant, OX2, expected to be fully operational in 2026.

“The successful funding shows that investors are backing technologies with real potential to make a difference,” said Andrew Symes, CEO of OXCCU. “Our goal is to make SAF more affordable and accessible, helping the aviation sector decarbonize at scale.”

OXCCU’s patented iron-based catalyst streamlines SAF production by converting gaseous waste carbon directly into jet-fuel-range hydrocarbons in a single reaction, eliminating costly intermediate steps. The technology works with various input gases, including reformed biogas, gasified wood waste, and carbon dioxide with hydrogen, reducing both costs and carbon intensity.

Jonathon Counsell, Group Sustainability Director at IAG, emphasized the investment’s strategic value: “Achieving net zero emissions by 2050 requires new fuels. This investment in OXCCU supports our commitment to meeting 10% of our fuel needs with SAF by 2030 and helps develop next-generation fuels.”

Ireneusz Fafara, President of ORLEN, added: “Supporting OXCCU aligns with our goal of becoming a leading SAF producer in Europe by 2035. Their technology helps us produce renewable fuels and move toward carbon neutrality.”

Nathalie Stubler, Chief Sustainability Officer at Safran, said: “We support scaling promising SAF technologies alongside our own decarbonization efforts in engines and aircraft systems.”

Daniel Goldman of Clean Energy Ventures highlighted OXCCU’s rapid progress: “In just a few years, OXCCU has gone from lab to commercial demonstration, proving that waste carbon and hydrogen can be converted directly into jet fuel at low cost.”

Dr. Robert Trezona from IP Group added: “This funding is a milestone for the SAF sector and demonstrates the UK’s ability to turn world-class science into solutions that decarbonize aviation while creating jobs.”

OXCCU’s technology could also be applied beyond aviation, including the production of chemicals and plastics. Symes stressed the urgency: “The climate challenge is increasing. Aviation needs affordable SAF, and that is exactly what we are delivering.”