OXCCU Secures £20.75 Million in Series B Funding to Advance Sustainable Aviation Fuel Technology

Technology Innovation Drives OXCCU's £20.75 Million Series B Funding

OXCCU, an Oxford University spin-out focused on the development of Sustainable Aviation Fuel (SAF) from waste carbon, has successfully concluded an oversubscribed Series B funding round, securing £20.75 million ($28 million). This substantial capital injection is earmarked to accelerate the commercialization of its proprietary technology, expand operational capacities, and advance the next phase of its technology scale-up. The funding round saw participation from new strategic investors including Orlen VC, Safran Corporate Ventures, and International Airlines Group (IAG) through its corporate venturing arm, IAGi Ventures. Existing investors such as Clean Energy Ventures, IP Group/Kiko Ventures, Aramco Ventures, and Eni Next also reiterated their support.

Deconstructing the Investment and Its Strategic Rationale

The oversubscribed nature of the Series B round underscores robust investor confidence in OXCCU's innovative approach to SAF production, particularly within a challenging capital market environment. This investment is not merely financial but strategically motivated by the aviation and energy sectors' imperative to decarbonize.

IAG's investment aligns directly with its ambitious goal to meet 10% of its fuel needs with SAF by 2030 and achieve net-zero emissions by 2050. Similarly, Orlen VC's participation supports Orlen's ambition to become a leading SAF producer in Europe by 2035, targeting an annual production of 70,000 tons. Safran Corporate Ventures also invested, reinforcing Safran's commitment to aviation decarbonization, with goals to reduce its carbon footprint by 50% by 2025 and produce 100,000 tons of SAF annually by 2030.

Publicly traded early-stage science investor IP Group Plc (LSE: IPO) contributed £4 million to this round, now holding an undiluted beneficial stake of 15.2% in OXCCU. Following the announcement, IP Group Plc's stock recorded a +2.10% increase, reflecting positive market sentiment towards its strategic investments in climate technology.

OXCCU's Single-Step Process Aims to Transform SAF Production Economics

OXCCU's core technology utilizes a patented iron-based catalyst to directly synthesize jet-fuel-range hydrocarbons from gaseous waste carbon, including CO2 and green hydrogen, in a single exothermic reaction. This one-step conversion process is designed to bypass complex, energy-intensive multi-step methods, such as Reverse Water-Gas Shift (RWGS) and Fischer-Tropsch (F-T) synthesis, which are traditionally associated with high capital and operating costs.

According to OXCCU, this streamlined approach can reduce fuel costs per tonne by approximately 25% and capital costs by about 50% compared to conventional SAF production methods. The company launched its OX1 demonstration plant at London Oxford Airport in 2024. The new funding will support the development of its second demonstration plant, OX2, which is projected to be fully operational by 2026.

Broader Market Implications: Accelerating Aviation Decarbonization

The significant investment in OXCCU underscores the growing urgency and demand for scalable SAF solutions. While SAF is recognized as a critical tool for decarbonizing aviation, its current adoption remains low, with the International Air Transport Association (IATA) anticipating that SAF production will account for only 0.7% of airlines' total fuel consumption in 2025.

However, the global SAF market is projected for exponential growth, expanding from an estimated USD 882.13 million in 2024 to USD 64,187.6 million by 2033. This growth is propelled by increasing regulatory mandates, including the UK SAF mandate, ReFuelEU Aviation initiative, and the U.S. Department of Energy's "Sustainable Aviation Fuel Grand Challenge." By offering a potentially cost-competitive solution, OXCCU is strategically positioned to address a major barrier to widespread SAF adoption: high production costs.

Expert Perspectives on the Future of Sustainable Aviation

Industry leaders emphasize the critical role of innovative technologies in scaling SAF production.

"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," stated Andrew Symes, CEO of OXCCU. He added, "What we’re seeing is that serious players with truly distinctive technologies are still getting funded."

Jonathon Counsell, Group Sustainability Director at IAG, highlighted the airline group's proactive stance:

"We recognise the need for the world to achieve net zero emissions by 2050 and for the aviation sector to play its part and to develop sustainably. IAG has been a leader in the sector, being the first airline group globally to commit to 10% SAF by 2030 and we are developing new partnerships to produce next-generation fuels."

Outlook: Scaling Sustainable Solutions for the Aviation Sector

With the OX2 plant expected to be fully operational by 2026, OXCCU aims to have its first commercial plants running by the late 2020s, potentially making SAF available to aircraft operators as early as 2028 or 2029, contingent on establishing necessary partnerships for licensed production and distribution. While the company's technology promises to significantly reduce production costs, the final cost of Power-to-Liquid (PtL) SAF remains sensitive to the price of green hydrogen, a key input.

This investment reflects a broader industry trend towards integrating innovative SAF production into long-term operational and sustainability strategies. The collective efforts of climate tech innovators, strategic corporate investors, and supportive regulatory frameworks are crucial to meeting the ambitious decarbonization targets set for the global aviation sector.