Neela Biotech secures £2.1m pre-seed funding for waste-to-jet-fuel tech
Cambridge-based startup Neela Biotech raised £2.1 million in pre-seed funding led by Elbow Beach. The investment will advance its AI-guided microbial technology, which converts organic waste into sustainable aviation fuel feedstock, and fund pilot-scale trials at a biogas plant.
Neela Biotech has raised £2.1m in pre-seed funding led by Elbow Beach to advance its waste-to-SAF technology. The round, which saw Elbow Beach contribute £1.5m, also included participation from Ascension, Cambridge Enterprise, Ventures Together, and strategic angel investors.
Technology and process
Neela Biotech’s technology converts food, agricultural, and forestry waste into sustainable aviation fuel. The process, called Controlled Microbial Upcycling, uses an AI-guided microbial method to produce fatty acids. These fatty acids are a key ingredient for producing SAF via the hydroprocessed esters and fatty acids pathway. The company aims to convert more abundant waste materials into HEFA-compatible feedstocks.
Deployment strategy
The company plans to integrate its technology into existing anaerobic digestion infrastructure at biogas plants across Europe. This strategy is designed to reduce the capital investment needed to scale production. By using existing plants, Neela lowers capital expenditure for SAF production. The company states its lower-energy microbial process, which replaces thermochemical alternatives, can unlock five times higher revenues when deployed in these facilities. This integration could also create additional revenue opportunities for biogas plant operators.
Market context and validation
Most sustainable aviation fuel today is produced via HEFA, which accounts for approximately 95% of current output. This method depends on limited feedstocks like waste cooking oil. There is insufficient waste oil and fat to meet global jet fuel demand via HEFA alone. The aviation industry burns 300 million tons of jet fuel annually, and the global airline industry’s fuel bill is set to rise by $98 billion in 2026.
| Fuel Type | Cost Comparison to Standard Jet Fuel |
|---|---|
| HEFA-based SAF | About 1.5 times more expensive |
| e-SAF | Up to 10 times more expensive |
Neela’s approach aims to achieve cost parity with fossil jet fuel at scale. The UK imports more than half its jet fuel from the Middle East, and recent geopolitical disruptions have compounded price pressures. The company is part of the International Airlines Group innovation programme. It has also secured grant funding from Innovate UK and the Henry Royce Institute.
Pilot trials ahead
The £2.1m investment will enable Neela Biotech to move from laboratory development to pilot-scale trials at an existing biogas plant. These trials are planned over the next two years to de-risk the technology before commercial deployment. Jonathan Pollock, CEO of Elbow Beach, highlighted the urgency, saying, "Aviation’s fuel bill is only going one way, and the industry urgently needs alternatives that can scale commercially." The company was founded by Deepanshu Singh, its CEO, and a co-founder named Friederike. Pilot-scale trials are planned over the next two years at an existing biogas plant.
