Climatetech startup Oxylus Energy raises $4.5m seed round for clean fuel technology

Oxylus Energy, developer of a novel carbon utilization technology for the production of e-fuels, announced the close of its $4.5 million series seed investment co-led by Toyota Ventures and Azolla Ventures with participation from Earth Foundry and Connecticut Innovations.

Lisa Coca, Climate Fund partner, Toyota Ventures: "We are thrilled to support the team at Oxylus Energy as they work to scale this cost-effective process for e-fuel production. Eliminating the need for hydrogen as an input is a significant innovation in the green energy space that has the potential to dramatically reduce production costs and unlock numerous decarbonization pathways."

Oxylus' solution is the first low-temperature and low-pressure conversion of carbon dioxide to green methanol, a liquid fuel. This is enabled by commercializing the first-ever catalyst developed at Yale University by Professor Hailiang Wang for direct electrochemical conversion of carbon dioxide to methanol. Building reactors similar to green hydrogen electrolyzers, Oxylus creates methanol using only captured carbon dioxide, water and electricity. Designed to operate in modular conditions, this approach is a lower-cost technology for carbon conversion into alternative fuels. This funding will accelerate Oxylus' technology development, prototype testing and pilot deployment.

Oxylus Energy's methanol can be used as a drop-in fuel replacement or upgraded to jet fuel and other green petrochemicals. By uniquely combining carbon conversion and alternative fuel production this approach can reduce energy expenditures and cut costs for fuel production.

Amy Duffuor, General Partner, Azolla Ventures: "While green methanol provides a pathway to decarbonize hard-to-abate sectors like shipping, maritime and aviation, price premiums and limited supply restrict feasibility of adoption. Oxylus Energy's modular single-step CO₂ electrolyzer, however, is highly efficient, reduces cost, and can be easily stacked to scale green methanol production. Oxylus Energy's technical progress combined with the novel catalyst, complementary team and ability to target multiple market applications, makes it an optimal investment for Azolla. We are incredibly excited to partner with Oxylus Energy on the next phase of their journey."

www.oxylusenergy.com

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