International Airlines Group (IAG) announced its participation in the £20.75 million (US$28 million) Series B funding round of OXCCU, a UK-based startup dedicated to innovation in sustainable aviation fuels (SAF).

The round attracted new and existing investors, including Safran Corporate Ventures, Orlen, and Aramco Ventures. IAG’s investment was made through IAGi Ventures, its corporate venture capital arm, which committed up to €200 million over five years—the largest such pledge from a European airline group.

OXCCU, a spin-out from Oxford University, developed a patented process that converts waste carbon gases and hydrogen into hydrocarbons for aviation fuel. Its innovation eliminates a conventional stage, reducing capital and operating costs, while enabling the use of different sources of CO₂, CO, and H₂.

The funding will support OXCCU’s expansion strategy and the commercialization of its technology, following the opening of its first demonstration plant at Oxford Airport last year. It will also support a larger-scale facility expected to be operational in 2026, in line with the UK’s SAF mandate and IAG’s decarbonization goals.

Ignacio Tovar, IAG’s Chief Innovation Officer, emphasized that the group is committed to companies with a real climate impact and underscored that OXCCU’s technology will be key to scaling the use of sustainable fuels in aviation.

IAG was the first airline group to commit to net-zero by 2050 and aims to achieve 10% SAF use by 2030. In 2024, 1.9% of its fuel came from SAF, avoiding 469,000 tonnes of CO₂, almost double the previous year.

Source and Credits to IAG

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