Cambridge's Neela Biotech Raises £2.1 Million (€1.8 Million) to Turn Waste Into SAF Feedstock
Why It MattersSAF scale-up is constrained by HEFA's reliance on scarce waste oils and fats, so feedstock routes that reuse biogas infrastructure could widen the supply base for lower-carbon aviation fuel.
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 money will support the company's move from laboratory development to pilot-scale trials at a biogas plant over the next two years.
Neela 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) SAF 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. Limited availability of these feedstocks is increasingly recognised as a barrier to scaling SAF production, and Neela's technology aims to address this by unlocking a broader range of organic waste materials.
The approach is designed 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 round was led by climate-focused investor Elbow Beach, with participation from Ascension, Cambridge Enterprise, Ventures Together and a number of strategic angel investors.
