SAF startup OXCCU raises US$28mn to convert waste carbon into jet fuel

Sustainable aviation fuel startup OXCCU has raised £20.75 million (US$28 million) in an oversubscribed Series B funding round to accelerate the development of its carbon-to-SAF technology.

The company, an Oxford University spin-out developing a one-step process to convert waste carbon into SAF, received backing from International Airlines Group, Safran Corporate Ventures, Orlen VC, Hostplus and TCVC, alongside re-investment from series A participants Clean Energy Ventures, IP Group/Kiko Ventures, Aramco Ventures, Eni Next, Braavos Capital, and the University of Oxford.

The newly raised capital will allow OXCCU to accelerate its commercialisation efforts and expand its operations after launching its first demonstration plant at London Oxford Airport in 2024. The firm is currently working on its second demonstration plant, which is expected to be operational in 2026.

“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. “What we’re seeing is that serious players with truly distinctive technologies are still getting funded.”

High production costs still limit SAF adoption

Sustainable aviation fuel (SAF) production is expected to reach 2 million tonnes in 2025 – double from last year but still just 0.7% of total jet fuel consumption.

The EU and the UK have passed laws mandating SAF quotas for airlines, but recent research from the International Air Transport Association (IATA) found that these mandates are hiking up prices and putting pressure on the industry.

For OXCCU, the funding reflects “increasing recognition that driving down SAF production costs is critical to unlocking aviation decarbonisation at scale”. 

The company’s process aims to simplify SAF production pathways by eliminating the need for reverse water gas shift or e-methanol steps. Instead, its patented iron-based catalyst enables the direct synthesis of jet-fuel-range hydrocarbons from gaseous waste carbon in a single exothermic reaction, and allows producers to operate with a wide range of feedstocks. This reduces capital and operating costs, and reduces the carbon intensity of the fuel.

OXCCU investors: ‘A significant milestone’

Jonathon Counsell, Group Sustainability Director at International Airlines Group (IAG), said: "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 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 which is part of our strategy of developing new partnerships to produce next-generation fuels.”

Robert Trezona, Partner, Cleantech at IP Group, added: “This round is 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. OXCCU showcases the UK’s ability to lead in climate innovation, turning world-class science into global solutions, while generating jobs and lasting impact. We’re proud to continue to support the company as it scales its compelling single-step technology.”