HutanBio advances seed round to £3 million with investment from UK Innovation & Science Seed Fund

Photo: HutanBio

On the heels of the recently announced key hire and strategic growth plans, HutanBio’s seed round advances to £3 million (USD$3.8 million) with investment from U.K. Innovation & Science Seed Fund (UKI2S).

This additional investment demonstrates the growing interest in low-carbon fuel technologies to support the drive to net zero in the complex and more challenging maritime and aviation sectors.  

UKI2S will join the existing lead investor, Clean Growth Fund.

According to HutanBio, the commitment from UKI2S—a publicly funded organization specializing in early science and knowledge-based innovations that have high-impact potential managed by impact-led Future Planet Capital (Ventures) Ltd.—further bolsters the growing confidence in its technology and its future potential, recognizing the valuable contribution advanced biology could have in combating climate change.  

Through the development of its innovative HBx biofuel platform—the culmination of 10 years of research and the world’s largest-ever marine microalgae-bioprospecting program—HutanBio said it has not only addressed a series of social and environmental challenges faced by other biofuel developments, but it has identified ways to utilize harmful carbon emissions from high-polluting industries such as cement and steel production. As a result, HutanBio said it further increases its global impact and future valuation by bolstering energy security and providing a major economic stimulus while reducing carbon emissions. 

Having been optimized through directed evolution to thrive in high salinity and grown in purpose-designed enclosed photobioreactors, HutanBio’s patented algae, HBx, will be grown on barren, desert-like land along coastal regions in areas of the world that benefit from high solar radiation.

This approach will avoid prime agricultural land and remove deforestation incentives, the company stated. 

“UKI2S is committed to investing in technologies that have a significant positive environmental impact,” said Oliver Sexton, UKI2S’s investment director. “HutanBio’s innovative use of biology for low-carbon fuel production aligns perfectly with our vision. We believe in its mission to make sustainable fuels and are excited to support its efforts in the battle against climate change.”

Paul Beastall, CEO of HutanBio, added, “We are delighted to have secured funding from UK12S. This investment is not just a financial boost, but a strong vote of confidence in our mission to harness advanced biology to produce low-carbon fuels. Bolstered by this additional investment, we can accelerate our strategic-growth plans and bring our innovative solutions to market quicker.”

Jonathan Tudor, an investment partner at Clean Growth Fund, said, “We’re really pleased to see UKI2S joining the round as HutanBio makes great strides, including growing its team of experts. The positive impact that HBx can have on today and tomorrow’s world is important. After over a decade of research and development, and with the maritime fuels market committing to stopping the use of fossil fuels by 2050, HutanBio has the potential to be a major disruptor in the fuel-supply market and could make a huge contribution to the decarbonization of transport and the hard-to-abate heavy industries.” 

HutanBio said this increased strength of investment partners, including its legal advisors Mishcon de Reya, reinforces the company’s position as a leader in the development of sustainable biofuel technologies.

“The combined expertise and resources from HutanBio and its investors are set to drive significant advancements in the sector, propelling the company toward its goal of contributing meaningfully to global net-zero targets through the decarbonization of long-distance transportation,” the company stated.