Sustainable fuels producer XFuel has secured €7.7 million in blended finance from the European Innovation Council (EIC). The Spanish company makes drop-in fuel for the transport sector–including marine transport–using converted waste.
XFuel said its conversion and refining technologies can produce cost-competitive low-carbon fuels from a variety of scalable waste materials, with a focus on industrial hydrocarbons and biomass residues. The company said the drop-in nature of the fuels means they meet fossil fuel specifications and performance and are fully compatible with existing combustion engines and fossil fuel infrastructure.
The company’s Chemical liquid refining (CLR) can refine and crack hydrocarbon liquids and residues into ultra-clean, drop-in transport fuels for marine, road and aviation sectors. Mechanical Carbon Conversion (MECC) co-processes lignocellulosic waste biomass and waste oils to produce low carbon transport fuels and biochar. Waste biomass is more sustainable than growing crops for biofuels which can threaten global food supplies.
The funding enables XFuel to progress its CLR technology to market with an immediate focus on delivering sludge-derived Marine Gasoil (MGO) grade fuel, with anticipated GHG emissions savings of up to 85% under the EU RED II framework for recycled carbon fuels. It includes a €2.5 million grant from the EIC Accelerator and a €5 million equity investment from the EIC Fund.
“We see many organisations seeking good value and the sustainable disposal of their waste, while transport fuel off-takers are urgently seeking affordable, low-carbon fuel, not least as regulations tighten and the cost of carbon starts to bite,” said Nicholas Ball, CEO and founder of XFuel. “With the EIC award, we can now strive to bridge this gap and unlock a viable solution to decarbonise these hard-to-abate sectors starting today. This is a major milestone in our mission to scale our low-carbon fuel solutions across Europe and beyond.”
