Ireland-based biofuel-tech company receives more than $8 million in latest investment round
XFuel announced July 13 that it has secured 8.2 million euros (USD$8.3 million) in its latest round of investment, laying the foundation for the commercialization of its next-generation synthetic diesel, marine and jet fuel technology.
The company says its patented technology efficiently converts biomass waste into low-cost, drop-in fuel that can be used in road, marine and aviation applications. It uses feedstock from sustainable waste-based sources in manufacturing, construction, forestry and agriculture.
The fuels produced by XFuel comply with marine and road fossil fuel specifications, according to the company, and can be used in existing infrastructure and engines, either blended with conventional fuels or as a replacement. Using modular and scalable biorefineries, XFuel can produce high-grade fuels at a comparable or lower price point to fossil-based fuels on the market, the company stated.
XFuel says independent assessments have shown that its technology can currently deliver fuel with greenhouse-gas emissions savings of 85 percent, with the potential to deliver carbon-neutral and carbon-negative fuels in the future.
The technology enables cost-efficient and transformative carbon-emissions reductions today without requiring significant capital investment, according to XFuel.
Investors in the oversubscribed financing round include Germany’s AENU led by Ferry Heilemann, New York-based Union Square Ventures, and HAX/SOSV, alongside other backers.
The investment will help drive commercialization of XFuel’s technology and assist in deploying a pipeline of global projects across road, maritime and aviation.
According to the XFuel, feedstock for four projects has already been secured through a deal with a leading waste-wood consolidator operating in the U.K. and Ireland. “There is a clear global consensus to decarbonize, but our dependency on liquid fuels isn’t ending soon enough,” said Nicholas Ball, CEO of XFuel. “For us to reach carbon neutrality and make an impact today, we need liquid-fuel replacements that are net zero, sustainable, drop in and cost-effective. Our mission is to decarbonize the transportation industry and meet this urgent need, and this is why we are thrilled to have received such a vote of confidence from our investors. Our low-carbon drop-in fuels and low-cost, modular biorefining technologies will play a major role in global decarbonization, across the automotive and haulage sectors as well as in hard-to-decarbonize industries like shipping and aviation. This investment will allow us to set the foundations for the commercialization of our company and the rapid scaling of our technology.” Ferry Heilemann, founder and partner at AENU, said, “The climate crisis demands a scalable response. XFuel’s sustainable biofuels meet this need, particularly in hard-to-abate sectors by using waste feedstock, leveraging existing infrastructure, and adopting a modular approach to production that enables rapid scale up. With almost abundant biomass feedstock around the globe and a low cost of production, XFuel is unlocking new possibilities for all kinds of industries to decarbonize.”