Oxylus Energy, a pioneering developer of carbon utilization technology, has successfully closed a $4.5 million Series Seed investment round. The funding was co-led by Toyota Ventures and Azolla Ventures, with additional participation from Earth Foundry and Connecticut Innovations. This investment will accelerate the development, testing, and deployment of Oxylus’ innovative technology for producing green methanol, a sustainable e-fuel.
Oxylus Energy is commercializing a groundbreaking catalyst, developed by Professor Hailiang Wang at Yale University, for the direct electrochemical conversion of carbon dioxide (CO2) to methanol. Unlike traditional methods, Oxylus’ technology operates at low temperatures and pressures, significantly reducing the cost of producing green methanol. This process involves capturing CO2 and combining it with water and electricity to create methanol, which can be used as a drop-in fuel replacement or upgraded to jet fuel and other green petrochemicals.
The modular design of Oxylus’ reactors, which are similar to green hydrogen electrolyzers, enables scalable and cost-effective production of alternative fuels. By reducing energy expenditures and lowering production costs, Oxylus’ approach could play a crucial role in decarbonizing hard-to-abate sectors such as aviation, shipping, and petrochemicals, which currently contribute to 11% of global emissions.
Co-Founder and CTO Conor Rooney highlighted the importance of this technology, stating, “Direct electrochemical conversion of carbon dioxide at low temperatures and pressures is the only way to decrease the cost of green methanol.” Harrison Meyer, Co-Founder and COO, added that lowering the price of methanol is essential for achieving decarbonization goals in these sectors.
The World Economic Forum has recognized the potential of green methanol to reduce CO2 emissions by up to 95%. Despite current production levels being below 0.2 million tons annually, the International Renewable Energy Agency (IRENA) projects that green methanol production could rise to 500 million tons by 2050. Oxylus Energy’s technology aims to meet this growing demand by offering a scalable and economically viable solution for the net-zero transition.
“We are thrilled to support the team at Oxylus Energy as they work to scale this cost-effective process for e-fuel production,” said Lisa Coca, Climate Fund partner at Toyota Ventures. Amy Duffuor, General Partner at Azolla Ventures, echoed this sentiment, noting that Oxylus’ modular single-step CO2 electrolyzer offers a highly efficient and scalable approach to green methanol production, making it a compelling investment.
With this seed funding, Oxylus Energy is well-positioned to advance its clean fuel technology, offering a sustainable solution for industries seeking to reduce their carbon footprint and transition to a net-zero future.
