OXCCU, a University of Oxford spin-out that develops sustainable aviation fuel from waste carbon, has raised £20.75 million ($28 million) in an oversubscribed series B round led by global aviation and energy investors.
The fundraiser attracted new investors, including Orlen VC, Safran Corporate Ventures, International Airlines Group, Hostplus and TCVC. Existing backers, including Clean Energy Ventures, Aramco Ventures, Eni Next and the University of Oxford, also participated.
The fresh capital will accelerate commercialization, expand operations and advance the scale-up of its patented one-step catalyst process. It follows the launch of OX1, the company’s first demonstration plant, at London Oxford Airport this year. Its second plant, OX2, is scheduled to begin operations in 2026.
Push to Lower Costs of SAF
Demand for SAF is rising as regulators tighten climate mandates. Yet, high production costs still hinder adoption despite policies such as the UK’s SAF mandate and ReFuelEU.
OXCCU’s single-step process eliminates the need for intermediate steps such as reverse water gas shift or e-methanol. Its iron-based catalyst enables the direct synthesis of jet fuel hydrocarbons from waste carbon gases in one exothermic reaction. This approach cuts capital and operating costs and reduces the carbon intensity of the fuel.
CEO Andrew Symes said the fundraising showed investors were backing distinctive technologies despite tighter capital markets. “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,” he said.
Strategic Investors See Long-Term Value
IAG stated that the deal aligns with its net-zero 2050 goals. “We are committed to meeting 10 percent of our fuel needs with SAF by 2030,” said Jonathon Counsell, IAG’s group sustainability director, in a statement.
Orlen President Ireneusz Fąfara stated that the investment supports the company’s ambition to become one of Europe’s leading SAF producers by 2035. Safran’s Chief Sustainability Officer, Nathalie Stubler, said scaling up SAF technologies is crucial to aviation’s decarbonization strategy.
Industry Sees Commercial Path Ahead
Investors said that OXCCU was moving quickly from lab development to commercial deployment. Clean Energy Ventures Co-Founder Daniel Goldman said the company had advanced in just a few years to a demonstration facility. “That rapid progress is reshaping the SAF market, unlocking the affordability aviation needs to decarbonize,” he said.
IP Group’s Robert Trezona said the deal marked a milestone for climate innovation in the UK. “OXCCU showcases the UK’s ability to lead in climate innovation, turning world-class science into global solutions, while generating jobs and lasting impact,” he said.
Wider Applications Beyond Aviation
While SAF is the immediate target, OXCCU’s technology could also serve the chemicals and plastics industries. Symes said the cost barrier was the main challenge. “Aviation needs a solution, and the serious lever is SAF. The challenge is SAF cost, and that is exactly what we are addressing,” he said.
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