SOSV and HAX portfolio company XFuel, a next-generation low-carbon fuel developer, was recently featured in Axios following the announcement of its $20M Series A and $9M blended-finance grant from the European Innovation Council. The funding will accelerate XFuel’s first commercial project producing ultra-low-carbon marine fuel.

The round brings in major strategic partners, including Japan’s NYK Line and Stolt Ventures, the VC arm of Stolt-Nielsen, two global leaders in shipping and logistics. They’re joined by new investors Wagner Carbon, Audacy, Future Planet Capital, Light Ray Ventures, and Overlap Holdings, with continued support from existing backers Union Square Ventures, AENU, and SOSV.

The timing matters: The International Maritime Organization (IMO) has set a net-zero target for 2050, but global policy momentum has wavered, especially after U.S. negotiators slowed progress late last year. Even so, the shipping industry is pushing forward, actively seeking cost-competitive low-carbon fuels that can scale. XFuel’s approach—modular, cost-efficient, and compatible with existing infrastructure—puts it right at the center of that shift.