Oxylus Energy Achieves Perfect Harmony in Producing E-Fuels for Aviation and Maritime Sectors

Numerous airlines and maritime transport firms aim for zero net carbon emissions by 2050, though their strategy to achieve this goal remains undefined.

Eliminating fossil fuels in these sectors is scientifically achievable, but from an economic standpoint, it remains elusive. However, startup Oxylus Energy believes it holds part of the solution to this complex puzzle.

Originating from a lab at Yale last year, Oxylus has dedicated its efforts to perfect the production of green methanol. Presently, the majority of methanol comes from fossil fuels and is utilized in creating petrochemicals, though it’s also a potential transport fuel. Green methanol, produced without the use of fossil fuels, could significantly reduce carbon emissions across various sectors.

“We believe it serves as one of the most adaptable chemicals for decarbonizing sectors like shipping, aviation, and petrochemicals, which presently contribute to 11% of global emissions,” shared co-founder and COO Harrison Meyer with TechCrunch.

Although electric vehicles (EVs) are becoming common in personal and freight transport, aviation and large-scale marine transport still heavily rely on fossil fuels for their energy requirements due to the need for energy-dense fuels for long-distance travel. Batteries present a weight challenge, and transitioning entirely to green hydrogen would involve expensive modifications to aircraft and ships.

It’s noteworthy that methanol has been utilized in motorsports for numerous years, and several internal combustion engines can operate on it with minimal adjustments. A few ships have already adopted methanol, and despite methanol not having the same energy content per barrel as other marine fuels such as diesel, its potential is being seriously evaluated by the industry.

The challenge is greater for airlines, as green methanol would need to be refined into a form similar to current jet fuels, which might increase costs.

However, the advantages in terms of CO₂ reduction become viable only if the methanol is produced via a low-carbon method, which is where Oxylus makes its entrance.

Currently, manufacturing green methanol is costly due to it requiring multiple energy-intensive stages, each utilizing expensive equipment. The procurement of green hydrogen alone accounts for about 16% of the overall cost, as reported by Lux Research.

Oxylus Energy has developed a technology that avoids the need for green hydrogen by employing a cobalt-based catalyst in an electrolyzer. This device applies electricity to split water and carbon dioxide into their atomic components, which then recombine to form methanol (CH₃OH) and oxygen (O₂) under standard conditions of temperature and pressure, making the process more cost-efficient.

“CO₂ electrolysis typically struggles with excessive hydrogen production,” CTO Conor Rooney explained. When too many hydrogen atoms form molecules (H₂), there’s an insufficient amount left for methanol creation. Oxylus’s catalyst structure, however, directs the chemical reaction towards methanol production after hydrogen separation from water. “Achieving this delicate balance is crucial,” Rooney added.

The methanol produced by Oxylus can serve the chemical industry in producing essential chemicals like formaldehyde and acetic acid, and with further processing, it can be transformed into sustainable aviation fuel.

TechCrunch exclusively learned that Oxylus recently secured a $4.5 million seed funding round led by Toyota Ventures and Azolla Ventures, with participation from Earth Foundry and Connecticut Innovations. This investment is set to support the construction of a full-scale production reactor, which could affirm the company’s ambitious cost objectives.

“With the current prices of renewable energy, we aim to achieve or surpass the cost efficiency of fossil-based methanol,” CEO Perry Bakas commented. “The pivotal challenge now is whether we can develop a system rapidly. This primarily boils down to a matter of time and investment, which is our current focus.”