Many airlines and shipping companies are pledging to achieve net zero carbon emissions by 2050, yet currently, they lack a definitive strategy for reaching that ambitious goal.
From a scientific standpoint, eliminating fossil fuels in these sectors is feasible; however, economically, it remains a challenge—at least for now—asserts a groundbreaking startup. Oxylus Energy believes it has the solution to part of this dilemma.
Spun out of a Yale chemistry lab last year, the company is dedicated to refining the production process of green methanol. Presently, most methanol is derived from fossil fuels and utilized in petrochemicals, but it also has the potential to serve as a transportation fuel. Due to its versatility, green methanol—produced without fossil fuels—could significantly reduce carbon emissions across various industries.
“We consider it one of the most adaptable chemicals capable of decarbonizing the hard-to-abate sectors of shipping, aviation, and petrochemicals that contribute to 11% of global emissions,” stated Harrison Meyer, co-founder and COO, in an interview with TechCrunch.
While electric vehicles are gaining traction in consumer transport and trucking, the aviation and heavy shipping sectors heavily rely on energy-dense fossil fuels for long-distance travel. Electric batteries are too cumbersome, and transitioning entirely to green hydrogen would necessitate costly retrofitting of aircraft and vessels.
For motorsport enthusiasts, it’s noteworthy that methanol has served as a racing fuel for decades, and many modern internal combustion engines can utilize it with minimal adjustments. Some cargo ships have also started transitioning to methanol. Though a barrel of methanol doesn’t carry as much energy as other maritime fuels like diesel, it is sufficiently close for the industry to consider it seriously.
For airlines, the transition poses additional challenges as they require green methanol to be processed into a form resembling conventional jet fuel, thereby increasing costs.
However, the promise of CO2 reductions is only realized if the methanol itself is produced through low-carbon methods. This is where Oxylus Energy steps in.
Currently, producing green methanol is costly due to the multi-step process involved, with each energy-intensive phase managed via expensive equipment. One of these phases, sourcing green hydrogen, accounts for approximately 16% of the total costs according to Lux Research.
Oxylus Energy’s innovative technology bypasses the green hydrogen requirement by employing a cobalt-based catalyst to facilitate the chemical reactions needed to create methanol. The catalyst is housed within an electrolyzer that utilizes electricity to separate water and carbon dioxide molecules. Once these components are divided into hydrogen, oxygen, and carbon atoms, they recombine to form methanol (CH3OH) and oxygen (O2). This entire process occurs at ambient temperature and pressure, aiding in cost reduction.
“As with CO2 electrolysis, the challenge lies in producing hydrogen,” remarked CTO Conor Rooney. If too many hydrogen atoms pair up into hydrogen molecules (H2), the leftover amount becomes insufficient for methanol production. Oxylus’s catalyst design assists in steering the reaction accurately, facilitating methanol creation as hydrogen is extracted from water. “Maintaining the right balance is crucial,” Rooney noted.
The methanol generated by Oxylus can be utilized by the chemical sector to manufacture various essential chemicals, including formaldehyde and acetic acid. With additional refining, it can also be converted into sustainable aviation fuel.
In an exclusive disclosure to TechCrunch, the startup announced a successful $4.5 million seed funding round led by Toyota Ventures and Azolla Ventures, with involvement from Earth Foundry and Connecticut Innovations. This funding is intended for the establishment of a production-scale reactor aimed at validating its price targets aggressively.
“With currently contracted renewable energy prices, we anticipate reaching or going below cost parity with fossil methanol,” expressed CEO Perry Bakas. “The primary question is whether we can construct a system in the forthcoming years. That truly boils down to a challenge of time and financial resources, which we are intensely concentrating on.”,
