Cambridge climate technology company Neela Biotech has raised £2.1m to develop a new route to sustainable aviation fuel using food, agricultural and forestry waste.
The pre-seed funding will help the startup move from laboratory work to pilot-scale trials at an existing biogas plant over the next two years. The round was led by climate tech investor Elbow Beach, which contributed £1.5m, alongside Ascension, Cambridge Enterprise, Ventures Together and strategic angel investors.
Making more waste usable for aviation
Neela’s process combines AI with microbial technology to convert organic waste into fatty acids, which can be used as a feedstock for sustainable aviation fuel. That could widen the range of materials available to the sector, which currently relies heavily on waste cooking oils and other fats.
The company says its system could be integrated with existing anaerobic digestion infrastructure, including biogas plants operating across Europe. Using facilities that are already in place may reduce the investment needed to scale production, while giving plant operators another potential source of revenue.
Neela is also taking part in the International Airlines Group innovation programme and has received grant funding from Innovate UK and the Henry Royce Institute. Its longer-term aim is to produce sustainable aviation fuel at a cost competitive with conventional jet fuel, although that will depend on successful scale-up.
Why it matters for Britain
The project keeps advanced climate technology, investment and pilot development centred in Cambridge. If the process works at scale, it could also create new uses for organic waste and support more localised fuel production through existing biogas infrastructure.
