February 20, 2024

photo credit: HutanBio

By Lynda Kiernan-Stone, Global AgInvesting Media

Founded by scientists from Cambridge University and in Malaysia, biotech company HutanBio has a mission to disrupt the biofuels industry through the commercialization of HBx, its carbon-negative biofuel designed to serve the transition to net zero in the marine and heavy transport sectors. 

To accelerate the use of HBx, and in the process reduce greenhouse gas emissions, Clean Growth Fund, a leading UK cleantech venture capital fund, has invested £2.25 million (US$2.84 million) in the company. 

Developed by John Archer Ph.D. from Cambridge University, who is now the company’s chief scientific officer; Noor Azlin Mokhtar Ph.D., originally a Ph.D. student at Cambridge working with Dr. Archer who is now the company’s director of operations; and Suhaiza Jamhor, a Masters graduate in biotechnology from Universiti Selangor in Malaysia, HutanBio’s HBx bio-oil is a sustainable, high-energy density, low-carbon, sulfur-free fuel solution that uses CO2 greenhouse gas as a feedstock for algae grown in custom bioreactor farms created by HutanBio. 

These farms are controlled by AI to optimize yields, and will be built on unproductive, non-agricultural and semi-arid and arid land in countries with high-intensity sunlight. Indeed, considering that the system uses CO2 as a feedstock, the company envisions situating some of its farms adjacent to high CO2 emitting heavy industrial sites, such as cement facilities.

HutanBio would then be in the position to offer these industries a ready-made, circular carbon capture-and-use solution that would allow the HBx biofuel to be used by their operations. 

“The positive impact that HBx can have on today and tomorrow’s world is significant,” said Dr. Jonathan Tudor, investment partner, Clean Growth Fund. “We know that the use of algae has long been recognised as a promising source of biofuel and for varying reasons many companies have failed to successfully commercialize, but the scientific rigor of HutanBio, the qualities of HBx and the market opportunities it has in the shipping and aviation sectors in particular gives Clean Growth Fund cause for great celebration to support the company’s future growth.”

“HutanBio can be a major disruptor in the fuel supply market and make a major contribution to the decarbonisation of transport and the hard-to-abate heavy industries.”

However, the company didn’t reach this point overnight. They explained that the development of its HBx fuel oil is the result of 10 years of research and a trillion samples screened in the world’s largest-ever marine microalgae bioprospecting program, as HutanBio addressed a series of social and environmental challenges associated with other biofuels.

Two of the most pressing factors being faced by various other crop-based biofuels is how they compete with agricultural food production and their use of natural resources. Conversely, the production of HBx uses no fresh water, and has been designed to thrive in brackish to very salty environments. It also is not a driver of deforestation or the destruction of peatland. Rather, the company noted that it can bring life to barren desert regions, adding to the planet’s photosynthesis activity while it scales up to remove millions of tons of CO2 from the atmosphere. 

Together with the company’s founding team, the company’s chief executive Paul Beastall, whose career was centered on scaling UK technology companies, has been instrumental in growing HutanBio from a science-based endeavor into a commercial venture. 

Addressing HBx’ commercial potential in the global shipping industry Beastall said, “We have designed HBx from the outset to blend seamlessly with existing infrastructure and supply chains. It requires no engine or vessel modification, meaning adoption of HBx can be immediate and without affecting operational efficiency. Vessel life can be maximized whilst carbon emissions are reduced without changing ship and port operations which is crucial for rapid deployment.”

Now, as a portfolio company of Clean Growth Fund, HutanBio is poised to capitalize on its many advantages in the global market. Founded in 2020, Clean Growth Fund is a £101 million (US$127.6 million) venture capital fund that is targeting the UK’s most promising early-stage companies pioneering the reduction of carbon emissions in the power and energy, agriculture, waste, buildings, and transport spaces. To-date, the fund has invested in 14 UK companies accelerating the development and commercialization of clean growth technologies contributing to the country’s efforts to reach net zero by 2050. 

“Clean Growth Fund’s investment in HutanBio, coupled with the strong commercial interest in HBx now being shown by potential customers from around the world, is hugely exciting and underlines the company’s massive potential,” said Dr. Archer.

“We have been patient and rigorous in our scientific work to ensure that HBx is market-ready, demonstrating the world-class expertise and tenacity of our team. We believe that HBx unlocks the biofuel puzzle, with the capability to produce a cost-effective biofuel an order of magnitude greater than any other oil-crop.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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