As airlines and shipping companies pledge to reach net zero carbon emissions by 2050, many are struggling to find a viable path to this ambitious goal. While the science behind eliminating fossil fuels is feasible, the economic reality remains challenging. Enter Oxylus Energy, a Yale spin-off that could hold a crucial piece of the solution.
Oxylus Energy, emerging from a Yale chemistry lab last year, is pioneering the production of green methanol—an alternative that could revolutionize industries heavily reliant on fossil fuels. Currently, most methanol is derived from fossil fuels, but green methanol, produced without these resources, holds the potential to significantly cut carbon emissions across various sectors, including shipping, aviation, and petrochemicals.
“We believe green methanol is one of the most adaptable chemicals for decarbonizing the hard-to-abate sectors responsible for 11% of global emissions,” said Harrison Meyer, co-founder and COO of Oxylus Energy.
Unlike electric vehicles, which are gradually penetrating consumer transport and trucking, aviation and heavy shipping still depend on energy-dense fossil fuels for long journeys. Batteries are too heavy for these applications, and transitioning to green hydrogen would require expensive modifications to existing infrastructure.
Methanol has long been used in motorsports and some shipping vessels as an alternative fuel. Although it doesn’t match diesel’s energy density, its efficiency is compelling enough to warrant serious industry consideration. For airlines, the challenge is converting green methanol to a form similar to jet fuel, which adds to the cost.
Oxylus Energy aims to address this cost challenge. Producing green methanol traditionally involves a complex, energy-intensive process with expensive equipment. A key cost driver is the production of green hydrogen, which accounts for approximately 16% of the total cost.
Oxylus’s innovation lies in its use of a cobalt-based catalyst within an electrolyzer to streamline methanol production. By facilitating the chemical reaction at room temperature and pressure, the process eliminates the need for green hydrogen, significantly reducing costs. This method balances the reaction to ensure methanol forms efficiently from separated hydrogen, oxygen, and carbon dioxide molecules.
The resulting green methanol can be utilized by the chemical industry for producing a range of products, including formaldehyde and acetic acid, and can be refined into sustainable aviation fuel.
Recently, Oxylus Energy secured a $4.5 million seed round led by Toyota Ventures and Azolla Ventures, with additional investment from Earth Foundry and Connecticut Innovations. The funding will support the development of a production-scale reactor aimed at meeting the company’s aggressive pricing targets.
CEO Perry Bakas emphasizes the goal: “At renewable energy prices available today, we aim to achieve or surpass cost parity with fossil methanol. Our focus now is on the time and financial resources required to build a scalable system.”
Oxylus Energy’s approach represents a promising step toward achieving net zero emissions, offering a practical and economically viable path for some of the most challenging sectors to decarbonize.
