Drop-in fuel technology firm XFuel has secured $20 million in new funding, backed by maritime groups NYK Line and Stolt Ventures, to scale its technology for use in shipping.

XFuel sees that the investment by the two companies will boost its ability to scale and deploy its technologies across global ports and shipping markets, it said in an email statement on Tuesday.

XFuel uses its proprietary chemical liquid refining (CLR) technology to convert waste and residue liquid to low-carbon fuels, which can be used in existing ships without requiring any modifications.

XFuel said its low-carbon drop-in MGO-compliant fuel delivers certified greenhouse gas emissions savings.

The Series A round also included Wagner Carbon, Audacy, Future Planet Capital, Light Ray Ventures, and Overlap Holdings, with existing investors Union Square Ventures, AENU, and SOSV participating.

XFuel added that it will work with its new partners to explore long-term offtake arrangements for its fuel and explore pilot programmes.