HutanBio, a biotech firm founded by scientists from Cambridge University, based in the UK and in Malaysia, on Thursday (18 January) said it has secured investment of GBP 2.25 million (USD 2.9 million) from UK clean-tech venture capital fund Clean Growth Fund to accelerate the commercial use of its HBx biofuel oil to supply to shipping and aviation industries.
HutanBio identified GBP 30 billion market opportunity in shipping and aviation industries for HBx biofuel, that is designed as a “drop-in” fuel to existing supply chains.
“HutanBio is aiming to secure a significant share of the maritime fuels market over the next decade, mandated by the International Maritime Organisation to reduce CO₂ emissions by at least 40% by 2030 (compared to 2008), to account for its carbon emissions this year (2024) and stop using fossil fuels by 2050,” the company said in a statement.
“Designed from the outset as a ready-made drop-in replacement fuel for the global shipping industry, HBx will support these mandates.”
HBx bio-oil is a sustainable and scalable high energy density, low carbon, sulphur-free, fuel solution, that uses CO₂ greenhouse gas as a feedstock for algae that are grown in special “bio-reactor farms”. These farms, designed and engineered by HutanBio and controlled by Artificial Intelligence to optimise yields, will be built on unproductive and non-agricultural semi-arid and arid land in countries where there are high levels of sunlight.

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Drawing on its extensive global cultivation trials and research work undertaken in Malaysia, HutanBio will provide the algae cultures and expert guidance to set up bio-reactor farms around the world. The biofarms will increase a country’s energy security, provide a major economic stimulus and enhance the local environment. HutanBio will help countries to become green and sustainable powerhouses. The company is investigating the possibility of its first biofarms to be in Morocco and Australia.
Given the need for CO₂ as a feedstock for its algae, HutanBio expects to locate some of its bio-reactor farms on land adjacent to high CO₂-emitting heavy industries. HutanBio offers these industries, for example the cement industry, with a ready-made and circular carbon capture and use solution, whilst allowing the HBx biofuel to be used in their operations. HutanBio’s project development approach is through modular expansion to suit market demands, helping to build supplies of HBx in a manageable and sustainable way.
The science behind HutanBio has been led by three people and who founded the company: Dr John Archer from Cambridge University (now the company’s Chief Scientific Officer), Noor Azlin Mokhtar, originally a PhD student at Cambridge working with John and now the company’s Director of Operations, and Suhaiza Ahmad Jamhor, who has a Masters degree in Biotechnology from Universiti Selangor in Malaysia. The company’s Chief Executive is Paul Beastall, who has had a career in scaling UK technology companies and has been instrumental in transforming HutanBio from a science-based company into a commercial venture.
Dr John Archer said: “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.”
“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.”
Highlighting HBx’s commercial opportunity in global shipping, Paul Beastall, CEO, 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 maximised whilst carbon emissions are reduced without changing ship and port operations which is crucial for rapid deployment.”
Dr Jonathan Tudor, Investment Partner at Clean Growth Fund, said: “The positive impact that HBx can have on today and tomorrow’s world is significant.”
“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 commercialise, but the scientific rigour 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.”
The investment from Clean Growth Fund will support the expansion of HutanBio’s engineering and business development teams in Cambridge.
Photo credit: HutanBio
Published: 19 January, 2024