XFuel has secured $20m in Series A funding to support the commercial rollout of its low-carbon drop-in fuel technology.

The equity round includes strategic investments from NYK Line and Stolt Ventures, the corporate venture capital arm of Stolt-Nielsen. Additional participants include Wagner Carbon, Audacy, Future Planet Capital, Light Ray Ventures and Overlap Holdings, alongside continued backing from Union Square Ventures, AENU and SOSV.

The Series A follows a $9m blended-finance grant awarded by the European Innovation Council in 2025, bringing XFuel’s total recent funding to $29m.

XFuel’s proprietary Chemical Liquid Refining (CLR) process converts waste hydrocarbon liquids into transport fuels that can be used directly in existing marine engines and fuel systems. Eligible feedstocks include MARPOL Annex I sludge and other residue streams generated by shipping and industrial operations. The company says the process produces high-yield fuels with a substantially lower carbon footprint, without requiring vessel modifications or new bunkering infrastructure.

Nicholas Ball, CEO at XFuel, said: "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."

As part of the investment, XFuel and its strategic maritime backers will evaluate potential long-term fuel offtake arrangements and collaboration on feedstock supply. This includes sourcing waste streams directly from vessel operators or through waste management partners, as well as assessing pilot projects and joint venture structures at selected ports.

Atsuya Nojiri, general manager of the Energy Co-ordination Group at NYK Line, commented: "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."

Santosh Lakhan, partner at Wagner Carbon, stated: "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."

Ed Phillips, managing director at Future Planet Capital, said the technology enables decarbonisation "with zero green premium" by delivering fuels at cost parity with conventional marine fuels.

Toby Chan, co-founder and general partner at Audacy, remarked: "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."

XFuel is headquartered in Dublin and is targeting shipping and other hard-to-abate transport sectors with its waste-to-fuel solutions, positioning its technology as a near-term option for emissions reduction within existing operational frameworks.