The aviation sector faces mounting pressure to decarbonise, yet the pathway to achieving this goal remains constrained by economics. Regulatory frameworks such as the UK SAF mandate and ReFuelEU have established clear targets, but the fundamental challenge of production costs continues to impede widespread adoption of alternative fuels.
OXCCU, an Oxford University spin-out, has secured £20.75 million ($28 million) in Series B funding to address this precise obstacle. The oversubscribed round attracted investment from IAGi Ventures, the corporate venturing division of International Airlines Group, alongside Safran Corporate Ventures and Orlen VC. Existing backers including Clean Energy Ventures, IP Group/Kiko Ventures, Aramco Ventures, Eni Next, Braavos Capital, and the University of Oxford also participated.
The capital injection arrives at a moment when investor caution prevails across many sectors, making the achievement particularly notable for a climate technology venture. The company has already launched its OX1 demonstration facility at London Oxford Airport in 2024, with a second plant scheduled to reach full operational capacity in 2026.
Streamlining The Production Process
The company’s approach fundamentally differs from conventional sustainable aviation fuel production methods. Traditional processes require multiple stages, including reverse water gas shift or e-methanol conversions, each adding complexity and expense to the final product.
OXCCU has developed a patented iron-based catalyst that enables direct synthesis of jet-fuel-range hydrocarbons from gaseous waste carbon through a single exothermic reaction. This streamlined methodology reduces both capital expenditure and operational costs whilst simultaneously lowering the carbon intensity of the resulting fuel. The elimination of intermediate steps addresses a key barrier to commercial viability that has long frustrated industry participants.
The catalyst’s technical specifications allow it to function with varying compositions of carbon dioxide, carbon monoxide and hydrogen input gases. This flexibility permits the efficient conversion of diverse feedstocks, including reformed biogas, gasified wood waste, and pure carbon dioxide combined with hydrogen. Such adaptability provides operational advantages across different geographical markets and regulatory environments.
Industry Heavyweights Commit Capital
The investor composition reveals the commercial imperative driving this funding round. IAG Ventures, the corporate venturing arm of International Airlines Group, has made a calculated move to secure access to technologies that could reshape its fuel supply chain. The airline group, which was the first globally to commit to net zero by 2050, has set an interim target of meeting 10 per cent of fuel requirements with sustainable aviation fuel by 2030. This investment directly supports that objective through partnerships aimed at producing next-generation fuels.
“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. What we’re seeing is that serious players with truly distinctive technologies are still getting funded.”
Andrew Symes, CEO, OXCCU
The investment from Orlen VC reflects similar strategic priorities within the energy sector. The organisation introduced SAF produced from renewable and waste materials into its portfolio this year, viewing the technology as essential to strengthening market competitiveness whilst pursuing carbon neutrality. Ireneusz Fąfara, President of the Management Board of ORLEN, confirmed the company’s ambition to become one of Europe’s leading sustainable aviation fuel producers by 2035.
Building Commercial Momentum
The participation of Safran Corporate Ventures adds a manufacturing dimension to the investor consortium. As a major aerospace equipment supplier, the company’s involvement signals confidence that the technology can integrate into existing supply chains and production systems. Beyond developing new engine and aircraft technologies internally, the organisation is actively de-risking promising fuel solutions through strategic capital deployment.
The venture has achieved notably rapid progression from laboratory research to commercial demonstration, a timeline that distinguishes it within a sector typically characterised by protracted development cycles. The OX1 facility at London Oxford Airport, operational since 2024, provides tangible proof of concept whilst generating operational data essential for scaling. The second demonstration plant, scheduled for full operation in 2026, will expand production capacity and validate the technology across different feedstock scenarios.
This development velocity matters commercially. Extended timelines increase capital requirements and delay revenue generation, factors that have constrained numerous climate technology ventures. The ability to move quickly from research to demonstration suggests both technical maturity and operational capability, reducing perceived risk for industrial partners evaluating long-term supply agreements.
“OXCCU stands out not only for its differentiated technology but also for the speed of its progress toward commercial plants. In just a few years, the company has advanced from the lab to a commercial demonstration facility, proving that waste carbon and hydrogen can be converted directly into jet fuel at low cost.”
Daniel Goldman, Managing Partner and Co-founder, Clean Energy Ventures
The funding round also highlights the UK’s position in climate innovation. The progression from Oxford University research to venture-backed commercialisation demonstrates how academic institutions can generate technologies with genuine industrial application. IP Group’s continued participation reflects confidence in this translation pathway, having supported the company through earlier funding stages. For the UK, success in this sector offers both economic opportunity and strategic positioning as global decarbonisation requirements intensify.
Broader Market Potential
The Series B capital will enable the company to expand operations and advance its technology scale-up phase. Management plans to accelerate commercialisation efforts, building on the momentum established by the OX1 demonstration plant. The company’s technology holds potential applications extending beyond aviation into chemicals and plastics production, suggesting broader commercial opportunities. Symes framed the current moment as critical for climate technology ventures.
“This is a critical time for climate tech, as the urgency continues to increase. Aviation needs a solution, and the serious lever is SAF. The challenge is SAF cost and that is exactly what we are addressing at OXCCU.”
Andrew Symes, CEO, OXCCU
The funding round’s success amid constrained capital markets indicates investor confidence in technologies that combine environmental benefits with economic practicality. As regulatory requirements tighten and operational pressures intensify, solutions that address cost barriers whilst delivering measurable emissions reductions are attracting substantial financial backing from industry participants with direct commercial interests in outcomes.