Cambridge-based biotechnology company Neela Biotech has raised £2.1 million (€1.8 million) in pre-seed funding to advance its technology for producing sustainable aviation fuel (SAF) from waste streams.
The investment will support the company's transition from laboratory development to pilot-scale trials at a biogas plant over the next two years.
Founded to address one of aviation's biggest decarbonisation challenges, Neela Biotech has developed an AI-guided microbial process that converts food waste, agricultural residues and forestry by-products into fatty acids, a key feedstock for hydroprocessed esters and fatty acids (HEFA) sustainable aviation fuel production.
According to the company, around 95% of SAF currently produced worldwide relies on HEFA technology, which depends largely on waste cooking oil and animal fats. However, limited availability of these feedstocks is increasingly recognised as a barrier to scaling SAF production. Neela's technology aims to overcome this constraint by unlocking a much broader range of organic waste materials.
A key advantage of the approach is its ability to integrate with existing anaerobic digestion and biogas infrastructure rather than requiring entirely new production facilities. The company says this could significantly reduce capital costs while creating additional revenue opportunities for biogas plant operators.
The funding round was led by climate-focused investor Elbow Beach, with participation from Ascension, Cambridge Enterprise, Ventures Together and a number of strategic angel investors.
As governments introduce SAF mandates and airlines pursue net-zero targets, demand for sustainable aviation fuel is expected to rise sharply. By transforming abundant waste resources into SAF feedstocks, Neela Biotech hopes to provide a scalable and cost-competitive pathway to lower-carbon air transport while strengthening the UK's emerging sustainable fuels sector.
Cambridge waste-to-SAF startup secures €1.8 million investment
