University of Liverpool spin-out raises £950k equity alongside £368k Innovate UK matched grant to scale its non-thermal plasma technology converting air and water into sustainable chemical inputs.
Plasma2X Limited, a green technology company spun out from the University of Liverpool, has successfully closed a £950,000 pre-seed equity investment round. The round was led by TSP Ventures, with further investment from LYVA Labs, the University of Liverpool, DITEVEN, and private angel investors.
In addition to equity funding, Plasma2X has secured £368,000 in non-dilutive grant funding from Innovate UK, part of UK Research and Innovation (UKRI), through the Innovate UK Growth Catalyst – Investor Partnerships Round 2 scheme, bringing the total secured capital to over £1.3 million.
Incorporated in October 2023 and based at Sci-Tech Daresbury, Plasma2X uses proprietary non-thermal plasma technology—often described as "lightning in a tube"—to synthesise nitrates and nitric acid directly from ambient air and water. These chemicals are key precursors for the production of critical products such as fertilisers, high-performance materials, textiles, pharmaceuticals, and energetics.
Traditionally, these chemicals are produced using energy-intensive Haber-Bosch and Ostwald processes, which are massive, highly centralised methods that consume around 2% of the global energy supply and generate 1.5–2% of global CO₂ emissions. Nitric acid production alone emits over 200 million tonnes of CO₂ annually. By moving away from such fossil-fuel-intensive processes, Plasma2X enables distributed, low-cost, low CO₂ chemical synthesis that easily integrates with intermittent renewable power.
The secured capital enables the scaling of the current plasma reactor module and commissioning of a pilot plant. This pilot may generate early sales of nitric acid for liquid fertilisers and industrial applications.
Dr. Mike Craven, CEO and Co-Founder of Plasma2X, said: "We are very excited to conclude this funding round, which represents a huge vote of confidence in our team and technology. We are deeply grateful to the University of Liverpool, TSP Ventures, LYVA Labs, DITEVEN and our angel investors for their shared vision, support and partnership as we move into the next phase.
Traditional nitric acid production relies heavily on natural gas and ammonia. Because conventional ammonia production is too expensive in the UK, we end up importing this from overseas and then convert that to make the nitric acid we need. That reliance on imports leaves farmers, manufacturers, and consumers exposed to geopolitical shocks, fossil fuel price volatility, and heavy carbon footprints.
Our modular plasma reactors present a game-changing opportunity by producing nitric acid locally and flexibly from air and water using renewable or grid power. For the UK, this restores sovereign production of critical chemical precursors for fertilisers and defence components without relying on foreign supply chains. For the Liverpool City Region, it drives high-value green job creation as we scale."
Mike Doswell, Co-founder and CIO of TSP Ventures, added: "We're delighted to have led this investment round into Plasma2X alongside the University of Liverpool and LYVA Labs. At TSP Ventures, we believe that building resilience into our supply of critical resources, fertilisers included, will be one of the defining themes of the next 20 years. Plasma2X’s modular, low-carbon approach removes the industry’s reliance on multi-billion-dollar plants and volatile natural gas prices, and has the potential to transform how nitrogen fertilisers are made. Big congratulations to Mike and the rest of the team for this important milestone and we look forward to supporting the company through this next phase of growth.”
Akshay Bhatnagar, Head of Investments at LYVA Labs, commented: “This investment supports the commercialisation of a transformative technology with the potential to deliver significant environmental and economic benefits across the World. The technology has the potential to significantly strengthen national resilience in the supply chain for fertilizer production and other key industries which rely on nitric acid as an input whilst creating high-value jobs in the Liverpool City Region and cross the UK.”
Emma Nolan, Head of Enterprise, University of Liverpool, said:“Plasma2X is a fantastic example of how research at the University of Liverpool can be translated into innovative technologies with the potential to address major global challenges.
We're proud to have supported the company's journey from research to writing the first cheque into the company and now co- investing in its next stage of growth. This funding represents an important milestone in bringing a promising low-carbon technology closer to commercial deployment, whilst also supporting innovation, investment and economic growth in the Liverpool City Region."
Incorporated in October 2023 as a spin-out from the University of Liverpool and headquartered at Sci-Tech Daresbury, Plasma2X is developing proprietary non-thermal plasma technologies to replace fossil-fuel-dependent chemical synthesis. By converting air and water into nitrates and nitric acid, Plasma2X enables localised, low-carbon production for agriculture and industry.
About TSP Ventures
TSP Ventures is an early-stage venture capital firm investing in hard science and breakthrough technologies. We back ambitious founders from lab-scale through to commercial roll-out. We don’t just provide capital; we roll up our sleeves, bringing deep investment, commercial and operational experience to help turn breakthrough technologies into thriving businesses. For more information, visit tspventures.co.uk.
About LYVA Labs
LYVA Labs is an innovation and investment organisation driving economic growth through the commercialisation of research and innovation. By inspiring ideas, creating partnerships and attracting investment, LYVA Labs supports the people, projects and businesses turning the Liverpool City Region's world-leading research and innovation strengths into real-world impact. Through investment, talent development and business support, it helps ambitious innovators develop and scale solutions that shape the future.
About Innovate UK
Innovate UK, part of UK Research and Innovation, is the UK’s innovation agency. It works to create a better future by inspiring, involving, and investing in businesses developing life-changing innovations. With an annual budget of over £1 billion, Innovate UK provides businesses with the expertise, facilities, and funding needed to test, demonstrate, and evolve their ideas, driving UK productivity and economic growth.
About the University of Liverpool
The University of Liverpool is a world top 200 institution and a founding member of the prestigious Russell Group. Driven by a commitment to translate groundbreaking academic discovery into real-world commercial impact, the University’s Enterprise Team fosters a thriving entrepreneurial ecosystem through dedicated spinout support and robust industry partnerships
About DITEVEN
DITEVEN is a specialised commercialisation advisory firm that helps scale-up disruptive hardtech and cleantech ventures bring novel technologies to market. Drawing on international expertise across business scale-up, global business development, licensing, and fundraising, DITEVEN works alongside founders and investors to shape go-to-market strategies and build scalable business models.
Media & Partnership Enquiries
· Email: info@plasma2x.com
· Website: plasma2X.com
· Address: Plasma2X, ITAC-19, Daresbury Laboratories, Keckwick Lane, Daresbury, WA4 4AD, UK