Low-carbon fuel technology company XFuel has been awarded a €4.1 million grant from Catalonia's Nuclear Transition Fund to develop a fuel production facility in the region, targeting supply to the maritime sector.

The grant, managed by Catalan regional agency Acció, was the second-largest awarded under the programme and, according to XFuel, received the highest score among all applicants — a result the company says was achieved in competition with larger, established firms.

The planned facility in Catalonia is designed to process 16,000 tonnes of marine waste oils into 14,000 tonnes of low-carbon marine gas oil annually, using what XFuel describes as its proprietary chemical liquid refining (CLR) technology — a single-step process that converts waste hydrocarbon liquids into drop-in transport fuels compatible with existing engines and infrastructure without modification.

XFuel says the facility is expected to create 35 jobs and has been located near the ports of Tarragona, Barcelona, Sagunto and Valencia to reduce emissions associated with feedstock supply and fuel distribution. The Nuclear Transition Fund is designed to attract investment and create employment in areas facing the future closure of the Ascó and Vandellós nuclear power plants.

Nicholas Ball, CEO and co-founder of XFuel, commented: "This grant is a powerful endorsement of both our technology and our commitment to this region. Competing against much larger players and securing the second-largest award validates what we have been building. The Catalonia facility will be a flagship demonstration of what drop-in, waste-derived low-carbon fuels can deliver — solutions that are commercially viable, infrastructure-compatible, and urgently needed by the maritime sector."

XFuel, headquartered in Europe with a demonstration plant in Mallorca, Spain, focuses on developing drop-in fuel solutions for hard-to-abate transport sectors. The company says its CLR technology delivers a reduced carbon footprint compared with conventional fuels, supporting compliance with tightening environmental regulations in shipping.