The UK’s low-carbon startup has attracted investments of $22.7 million from Aramco, Eni, and United Airlines.
The aviation industry’s pursuit of affordable low-carbon fuel received a significant boost with a $22.7 million investment in a UK startup specializing in clean energy technology. The venture units of Saudi Arabian Oil Co. (Aramco) and Italy’s Eni, in partnership with United Airlines, have joined forces to invest in OXCCU, a company that emerged from the University of Oxford.
The investment, led by US-based investor Clean Energy Ventures, aims to support OXCCU in its mission to reduce the high cost associated with low-carbon aviation fuel, as stated in a press release. OXCCU has developed a process that combines captured carbon dioxide from industrial or power plants with hydrogen produced using renewable electricity. This innovative approach utilizes an iron-based catalyst to facilitate the chemical reaction in a single step, eliminating the need for the costly two-stage process typically employed. Not only does this streamline the production process, but it also reduces capital costs by up to 50% and minimizes the production of byproducts.
Michael Leskinen, President of United Airlines Ventures, emphasized the significance of sustainable aviation fuel in decarbonizing air travel and acknowledged the supply shortage the industry currently faces. Leskinen expressed confidence in OXCCU’s technology, highlighting its ability to use carbon dioxide as a feedstock for fuel production. By doing so, this cutting-edge solution offers a cost-effective pathway for United Airlines to achieve its commitment of net-zero carbon emissions by 2050, without solely relying on traditional carbon offsets.
Clean Energy Ventures evaluated numerous technologies in the sustainable aviation fuel industry and recognized OXCCU’s unique approach. They believe that OXCCU’s technology holds extraordinary potential to mitigate emissions associated with aviation fuel production on a gigaton-scale in the near future. Daniel Goldman, co-founder and managing partner of Clean Energy Ventures, expressed enthusiasm for leading a consortium of industry leaders to support OXCCU in the commercialization and deployment of their groundbreaking technology.
During an aviation forum held last month, Saudi Arabia’s energy minister highlighted the role of low-carbon fuel in facilitating the aviation sector’s transition to greener energy sources. This investment in OXCCU aligns with the industry’s efforts to explore sustainable alternatives and reduce its carbon footprint.
The partnership between Aramco, Eni, and United Airlines marks a significant milestone in the development of low-carbon aviation fuel. The financial support provided to OXCCU will enable the company to further refine its technology, overcome cost barriers, and contribute to the growth of the sustainable aviation fuel industry. As the aviation industry continues to prioritize environmental sustainability, investments like these demonstrate a commitment to innovation and the pursuit of a greener future for air travel.
