Many airlines and shipping companies claim to be net-zero carbon by 2050, but there is currently no clear path to achieving that goal.
While it's scientifically possible to eliminate fossil fuels from these industries, it's not economically possible — at least not yet, a new startup argues. Oxyrus Energy believes it holds the key to solving one side of the equation.
The company spun out of Yale University's chemistry lab last year and has been working to improve the production of so-called green methanol. Currently, most methanol is made from fossil fuels and used to make petrochemicals, but it can also be used as a transportation fuel. Because of its flexibility, green methanol, which is produced without fossil fuels, could potentially remove carbon pollution from a variety of industries.
“We think this is one of the most versatile chemicals that can actually reduce carbon emissions in hard-to-abate sectors like shipping, aviation and petrochemicals, which currently account for 11% of emissions,” co-founder and COO Harrison Meyer told TechCrunch.
While EVs have made inroads in consumer transportation and trucking, planes and large ships rely entirely on energy-dense fossil fuels for long-distance travel: batteries are too heavy, and switching entirely to green hydrogen would require expensive modifications to planes and ships.
Motorsport fans will be aware that methanol has been used as a race fuel for decades, and that many of today's internal combustion engines can run on it with only minor modifications. Some ocean-going vessels have also switched to methanol, and the industry is seriously considering it, as the energy content of a barrel of methanol is close, though not as high, as other marine fuels like diesel.
For airlines, the hurdle is a bit higher, as green methanol will need to be refined into something closer to current jet fuel, raising the price.
But the CO2 reductions are only meaningful if the methanol itself is produced in a low-carbon way. That's where Oxylus comes in.
Producing green methanol is currently costly because it requires multiple, energy-intensive steps that require expensive equipment to produce it, and just one step, sourcing the green hydrogen, accounts for about 16% of the total cost, according to Lux Research.
Oxylus Energy's technology avoids the need for green hydrogen by using a cobalt-based catalyst to drive the chemical reactions required to produce methanol. The catalyst is placed inside an electrolyser, which uses electricity to split water and carbon dioxide molecules. Once the hydrogen, oxygen, and carbon atoms are separated, they combine to form methanol (CH3OH) and oxygen (O2). All of this happens at standard room temperature and pressure, keeping costs down.
“Just like with CO2 electrolysis, hydrogen production is a constant struggle,” says CTO Conor Looney. When too many hydrogen atoms are bonded to hydrogen molecules (H2), there isn't enough left to make methanol. The chemical structure of Oxyrus' catalyst steers the reaction in the right direction, allowing methanol to form after hydrogen has been liberated from water. “You have to maintain this beautiful balance,” says Looney.
The methanol produced by Oxylus can be used to make chemicals widely used in the chemical industry, such as formaldehyde and acetic acid, and with further processing and purification, can be turned into sustainable aviation fuel.
The startup told TechCrunch exclusively that it recently raised $4.5 million in a seed round led by Toyota Ventures and Azora Ventures, with participation from Earth Foundry and Connecticut Innovations. The funding will go towards building a production-scale reactor, which the company hopes will help it achieve its aggressive price target.
“At the renewable energy prices we can contract for today, we can do it at or below the cost of fossil methanol,” CEO Perry Bacas said. “The core question is, can we build the system in the next few years? It's a question of time and money, and that's what we're really focused on.”