Plasma2X raises £1.3m led by TSP Ventures and LYVA Labs
This article covers Plasma2X, a greentech startup spun out of the University of Liverpool, which has closed a pre-seed funding round totalling just over £1.3m to scale a modular plasma reactor that makes nitrates and nitric acid from air and water. The funding supports scaling and the commissioning of a pilot plant aimed at early sales into fertiliser and industrial markets and targets reducing reliance on centralised, energy‑intensive chemical plants and imports.
Plasma2X, a greentech startup spun out of the University of Liverpool, has closed a pre-seed funding round totalling just over £1.3m to scale a modular plasma reactor that makes nitrates and nitric acid from air and water — a step the company says could reduce reliance on energy‑intensive chemical plants and imports. The funding will be used to scale a reactor module and commission a pilot plant aimed at early sales into fertiliser and industrial markets.
Why it matters
Nitric acid and nitrates are central to fertilisers and a range of industrial products, but their conventional manufacture relies on the Haber‑Bosch and Ostwald processes — highly centralised, fossil‑fuel intensive methods that together account for a significant share of global energy use and emissions. The sector-wide impact is large: conventional nitric acid production alone emits over 200 million tonnes of CO2 annually.
Plasma2X’s approach promises smaller, modular units that can run on renewable or grid power and be sited closer to demand. If technically and economically viable at scale, that could lower transport costs, reduce exposure to volatile natural gas and ammonia markets, and support regional resilience in supply chains for fertiliser and other chemical precursors.
Inside the product
Plasma2X develops non‑thermal plasma reactors — sometimes described as “lightning in a tube” — that synthesise nitrates and nitric acid from ambient air and water. The company says this avoids the need for ammonia feedstock and large, centralised plants. Incorporated in October 2023 and headquartered at Sci‑Tech Daresbury, Plasma2X plans to use the new funds to scale its current reactor module and bring a pilot plant online, with early commercial targets in liquid fertilisers and industrial nitric acid.
The technology remains at an early commercialisation stage: the pilot will test performance, integration with intermittent renewable power and operating costs compared with incumbent routes. Success will hinge on energy efficiency, catalyst and materials durability, and regulatory and safety pathways for decentralised chemical production.
Who are the investors?
Plasma2X raised £950,000 in a pre‑seed equity round alongside a £368,000 non‑dilutive grant from Innovate UK’s Growth Catalyst – Investor Partnerships Round 2, bringing total secured capital to more than £1.3m. The equity round was led by TSP Ventures and included LYVA Labs, the University of Liverpool, DITEVEN and private angel investors.
The backers frame the investment as a bet on localised, low‑carbon chemical manufacturing that could reduce dependence on imported ammonia and large gas‑fired plants while creating regional jobs.
Mike Doswell, Co‑founder and CIO at TSP Ventures, said:
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, said:
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 at the 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.
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Founder perspective
Dr Mike Craven, CEO and Co‑Founder at Plasma2X, framed the round as both a technical validation and a strategic response to supply vulnerability in the UK:
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.
Craven’s comments underline the commercial objectives (early sales and pilot validation) as well as regional economic benefits the company highlights as part of its growth case.
The bigger picture
Plasma2X’s funding sits at the intersection of several UK policy and market themes: industrial decarbonisation, sovereignty of critical supply chains, and support for commercialising university research. Innovate UK’s grant underlines public interest in technologies that could reduce imports and emissions. For investors, modular chemical production appeals as a way to avoid the capital intensity and geopolitical exposure of large petrochemical complexes.
Challenges remain. Energy efficiency, lifetime costs and permitting for decentralised chemical plants will determine adoption across agriculture and industry. If Plasma2X can demonstrate reliable, cost‑competitive operation at pilot scale, it would strengthen the case for more distributed production models in the UK and Europe and attract further greentech investors looking to reduce carbon intensity in hard‑to‑abate industrial processes.
They've invested in Plasma2X
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