Oxylus Energy Secures $4.5 Million Seed Round to Advance Clean Fuel Technology
Oxylus Energy, a developer of cutting-edge carbon utilization technology, has successfully raised $4.5 million in a Series Seed funding round. The investment was co-led by Toyota Ventures and Azolla Ventures, with additional participation from Earth Foundry and Connecticut Innovations. This funding will accelerate the development of Oxylus’ pioneering solution for producing e-fuels, specifically green methanol, through carbon dioxide conversion.
The company’s novel approach is based on a low-temperature, low-pressure process that converts carbon dioxide into green methanol, a sustainable liquid fuel. This breakthrough is powered by a first-of-its-kind catalyst, developed at Yale University by Professor Hailiang Wang, enabling direct electrochemical conversion of carbon dioxide into methanol. Oxylus Energy's reactors operate similarly to green hydrogen electrolyzers, utilizing captured carbon dioxide, water, and electricity to produce methanol.
Designed to be modular and scalable, Oxylus’ technology offers a cost-effective solution to carbon conversion, positioning itself as a key player in the production of alternative fuels. "Direct electrochemical conversion of carbon dioxide at low temperatures and pressures is the only way to decrease the cost of green methanol", said Conor Rooney, Co-Founder and CTO of Oxylus Energy.
Green methanol, as a drop-in fuel replacement, offers versatility, with the potential to be further upgraded into jet fuel and other green petrochemicals. This makes it an ideal option for decarbonizing hard-to-abate industries such as aviation, shipping, and petrochemicals. According to Harrison Meyer, Co-Founder and COO of Oxylus, "Without decreasing the price of methanol, it will be difficult to decarbonize these sectors, which are currently responsible for 11% of global emissions."
The company’s innovative approach comes at a critical time, with green methanol production currently below 0.2 million tons annually. However, the International Renewable Energy Agency (IRENA) predicts that production will rise to 500 million tons by 2050 as part of global efforts to achieve net-zero emissions. Perry Bakas, Co-Founder and CEO of Oxylus Energy, emphasized that Oxylus’ technology is crucial to meeting this rising demand. "Our technology can provide green methanol at a price that works for the industry, supporting the transition to a low-carbon economy," he said.
The company’s ability to produce methanol without the need for hydrogen as an input is seen as a significant breakthrough in the green energy space. "This innovation has the potential to dramatically reduce production costs and open up new pathways for decarbonization," noted Lisa Coca, Climate Fund partner at Toyota Ventures.
Azolla Ventures also recognized the scalability and cost-efficiency of Oxylus’ technology. "Their modular CO2 electrolyzer is highly efficient, reducing costs and making green methanol production scalable for industries like shipping and aviation," said Amy Duffuor, General Partner at Azolla Ventures.
With this fresh injection of capital, Oxylus Energy is set to further develop its technology, conduct prototype testing, and launch pilot projects. These efforts aim to revolutionize the production of green methanol and contribute to the global net-zero transition.