XFuel gets $20m funding to develop refining technologies to make low carbon fuel for ships

XFuel, a low-carbon drop-in fuel technology company, today announced the successful completion of its Series A funding round earlier last year, raising $20 million in equity, including a recently closed extension. The round brings on board new investors Wagner Carbon, Audacy, Future Planet Capital, Light Ray Ventures, Overlap Holdings, as well as two major strategic investors Nippon Yusen Kabushiki Kaisha (NYK Line) and Stolt Ventures, the corporate venture capital investment vehicle from Stolt-Nielsen, both global leaders in maritime logistics and transport. 

The strategic investment from NYK Line and Stolt Ventures strengthens XFuel’s ability to scale and deploy its technologies across global ports and shipping markets. These new corporate partners and XFuel will explore long-term fuel offtake arrangements and assess supply-side collaboration opportunities, with the provision of MARPOL Annex I sludge and other eligible waste streams, either directly or through XFuel’s waste management partners.  

Furthermore, they will explore projects, pilot programmes, and joint venture structures at strategic ports, with the objective of accelerating the commercial deployment of XFuel’s technologies and delivering affordable near-term emissions reductions across global transport networks. 

Many of XFuel’s existing investors, including Union Square Ventures (USV), AENU and SOSV, also participated in this latest round, underscoring continued confidence in the company’s technology, commercial model, and growth trajectory. 

In addition to the equity raised, XFuel received a $9 million blended-finance grant in 2025 awarded by the European Innovation Council (EIC). Combined, this funding from strategic and institutional partners will advance the company’s mission to deliver low-carbon drop-in transport fuels at globally competitive prices and at scale. 

One of XFuel's key technologies, Chemical Liquid Refining (CLR), is an innovative one-step process that refines a range of waste hydrocarbon liquids into ultra-clean drop-in transport fuels for the shipping and other hard-to-abate sectors. CLR technology delivers high-yield drop-in products with a significantly reduced carbon footprint, providing a scalable, cost-efficient alternative to the industry without requiring modifications to existing engines or new infrastructure. 

Nicholas Ball, CEO at XFuel: “Closing our Series A is a defining moment for XFuel. The backing of top-tier VCs alongside global shipping leaders is a clear vote of confidence not just in our technology, but in our ability to scale it globally. With this capital, we’re moving decisively from innovation to impact; deploying our first commercial facilities and delivering cost-competitive, low-carbon drop-in fuels exactly when the shipping sector and other hard-to-abate industries need real solutions.” 

Santosh Lakhan, Partner at Wagner Carbon: “XFuel is a perfect fit for our investment portfolio. By extracting high quality, low sulphur drop-in fuel products from a waste pollutant that would otherwise need to be burned or dumped, XFuel is simultaneously reducing the environmental risk in the maritime fuel supply-chain and decarbonising shipping.” 

Atsuya Nojiri, General Manager, Energy Co-Ordination Group, NYK Line: “We strongly support XFuel’s cutting-edge low-carbon fuel technology and its commitment to commercial deployment. In particular, we believe that the innovative approach of converting vessel sludge; currently a waste product; into a drop-in, low-carbon fuel without requiring infrastructure modifications holds great environmental and economic promise. Through collaboration with XFuel, we aim to accelerate the sustainable development and decarbonisation of the maritime industry.” 

Ed Phillips, Managing Director at FPC: “We’re backing XFuel because its drop-in, waste-to-fuel solution lets the shipping industry slash emissions immediately without costly new infrastructure or retrofits. By delivering fuels at cost-parity with today’s marine fuels, XFuel enables decarbonisation with zero green premium.”  

Toby Chan, Co-Founder and General Partner at Audacy: “Audacy is excited to support XFuel's growth, particularly across APAC where we are based given the region contains many of the world's largest ports.  With backgrounds in infrastructure financing, we also look forward to assisting the rollout and scale-up of XFuel's plants globally.”