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DAC firm closes $80m Series A

The firm, CarbonCapture, added multiple strategic investors in the raise including Amazon's Climate Pledge Fund, Aramco Ventures, and Siemens Financial Services.

CarbonCapture Inc. (CarbonCapture), a leading US-based direct air capture (DAC) company, today announced the successful completion of its $80m Series A financing following the addition of multiple strategic investors that include Amazon’s Climate Pledge Fund, Aramco Ventures, and Siemens Financial Services, according to a news release.

The financing was led by Prime Movers Lab, a leading investor in breakthrough scientific startups, with participation from Idealab X, Marc Benioff’s TIME Ventures, Neotribe Ventures, Alumni Ventures, and several other venture investors. Funds will be used to further technology development and to field early installations of CarbonCapture’s modular DAC systems.

“To realize our ambitious mission to decarbonize the atmosphere, it’s imperative that we marshal the capabilities of the global industrial community,” said Adrian Corless, CEO of CarbonCapture Inc. “That’s why I’m so excited to welcome our new strategic investors—the unparalleled logistics and supply chain prowess of Amazon, the world-class capabilities of Aramco Ventures, and the digital transformation and energy transition expertise of Siemens will be pivotal to helping us scale DAC in the coming years. We also want to thank our existing investors for their continued belief and support. Together, we’re stepping closer to a cleaner, healthier planet for future generations.”

CarbonCapture develops, manufactures, and deploys highly scalable solid sorbent DAC systems based on its patented modular open systems architecture. To date, the company has pre-sold over $26m in carbon removal credits to many of the world’s leading companies, including Microsoft, Boston Consulting Group, Alphabet, Meta, Stripe, Shopify, McKinsey & Company, and JPMorgan Chase & Co.

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Hydrogen Council, McKinsey 2023 hydrogen report summarized

The hydrogen industry faces challenges due to high costs and regulatory uncertainty despite significant advances this year, according to the report.

The global hydrogen economy is witnessing significant growth, with more than 1400 projects announced, marking an increase from about 1040 last year, according to the 2023 Hydrogen Insights report from The Hydrogen Council and McKinsey. 

These projects, amounting to a total investment of  $570bn, aim to supply 45 million tons per annum of clean hydrogen by 2030. Europe leads in project numbers (540), followed by North America (248), with a quarter of these projects already past the final investment decision (FID) stage. 

Notably, investments are maturing, with $110bn allocated for front-end engineering and design (FEED) and beyond, a 60% growth in such investments. Electrolysis deployment has also surged, surpassing 1 GW, with approximately 12 GW capacity having passed FID​​.

However, the clean hydrogen industry faces challenges, particularly in the cost of producing renewable hydrogen. The estimated levelized cost of producing renewable hydrogen (LCOH) is currently about $4.5 to $6.5 per kilogram, an increase of 30% to 65% due to factors like higher labor and material costs. Despite this, costs are expected to decline to $2.5 to $4.0 per kg by 2030, driven by advancements in electrolyzer technology, manufacturing economies of scale, and reductions in renewable power cost​​.

The regulatory landscape is evolving but uncertainties persist, the report notes, including the requirements for receiving production tax credits under the US Inflation Reduction Act and the implementation of the Renewable Energy Directive in EU member states​​.

Investment growth is evident across most regions. Europe not only has the most projects but also the highest total investments announced ($193bn). Latin America, despite fewer projects than North America, has announced the second-largest volume of investments ($85bn), attributed to larger project sizes and a higher share of giga-scale renewable hydrogen projects. North America’s announcements grew by about 20%, reflecting continued momentum following policy developments. India, the Middle East, and China also showed significant growth in investments​​.

In terms of electrolysis capacity, over 305 GW has been announced through 2030, with China leading in capacity past FID, accounting for about 55% of the 12 GW total. The European investment pipeline has 40 GW (about 45%) at least in the planning stage, and Latin America contributes 20% of all announced volumes through 2030. However, less than 5% of renewable hydrogen supply investments are currently committed, indicating a need for significant acceleration in project development and scaling up of supply chains and manufacturing capacity​​.

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Carbon America and Svante to collaborate on US carbon capture deployment

The companies will work together to identify and deploy projects in the US.

Carbon America and Svante Technologies Inc. (Svante) have announced a collaboration to focus on commercial deployment of carbon capture, utilization and storage (CCUS) projects in the United States.

The companies will work together to identify and deploy projects which can rapidly reduce greenhouse gas emissions in the United States. The collaboration leverages Svante’s novel solid sorbent carbon capture technology and Carbon America’s expertise in CCUS project development.

“Carbon capture is a critical component to the energy transition and Carbon America believes that collaboration is needed amongst players in this space to create meaningful change quickly,” said Brent Lewis, CEO of Carbon America. “By combining Carbon America’s project development expertise with Svante’s ready-to-deploy technology, we can more rapidly drive down greenhouse gas emissions across the industrial sector. We’re excited to collaborate with the incredible Svante team.”

Carbon America’s vertically integrated approach to CCUS development – from development to financing, engineering and execution – enables projects to move from concept to operation faster and more cost-effectively. Carbon America’s expertise across the capture-transport-storage value chain helps reduce critical risks along the development path to ensure the long-term success of projects.

“We’re enabling industries around the world to decarbonize their operations with second generation carbon capture and removal technology that is both environmentally responsible and efficient,” said Brett Henkel, Svante’s co-founder & VP strategic accounts and government affairs. “Collaboration is the key to success in this market, and working with companies like Carbon America will enable us to accelerate the deployment of our technology with enhanced ability to finance, build and operate carbon capture projects at scale in an efficient, cost-effective way.”

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Eversource to record $1.6bn impairment, nears sale of offshore wind stakes

Eversource Energy expects to record an impairment of up to $1.6bn in connection with its offshore wind holdings, and is nearing a deal to divest its ownership of the assets to a global infrastructure investor.

Eversource Energy expects to record a substantial impairment charge in the fourth quarter of 2023, primarily due to increased costs and uncertainties in its offshore wind projects. The company is also in advanced talks to divest its 50% ownership in three major offshore wind projects: South Fork Wind, Revolution Wind, and Sunrise Wind​​.

The anticipated impairment charge, in the range of $1.4 to $1.6bn, arises from revised project construction costs and supply chain constraints, particularly in installation vessels and foundation fabrication. These challenges have led to a significant decrease in the fair value of these projects, according to the company. Additionally, the denial of Sunrise Wind’s petition by the New York State Public Service Commission to amend its Offshore Renewable Energy Credit (OREC) contract has contributed to the impairment. This decision impacts Sunrise Wind’s involvement in New York’s renewable energy solicitation and necessitates renegotiation of the OREC agreement at a revised price, further contributing to the impairment expected to be in the range of $600m to $700m for Sunrise Wind alone​​.

Eversource is negotiating with a leading global private infrastructure investor to sell its stake in these projects. While the final terms are still under discussion, Eversource aims to promptly announce the details upon reaching a definitive agreement. This potential divestiture is subject to regulatory approvals and other conditions, including partnership agreements with Ørsted, Eversource’s joint venture partner​​.

Joe Nolan, Eversource’s Chairman, President, and Chief Executive Officer, commented on the challenges faced by the offshore wind industry, noting significant supply chain disruptions and inflationary pressures.

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It’s an electrolyzer – but for CO2

A New Jersey-based start-up is seeking to commercialize an electrocatalytic technology that transforms CO2 into a monomer for the plastics industry.

RenewCO2 is developing and seeking to commercialize a modular technology that converts waste CO2 into a usable product.

The New Jersey-based company is advancing a pilot project at an Ace Ethanol plant in Wisconsin that will take CO2 and convert it to monoethylene glycol, which can be used by the plastics industry.

The project was recently selected by the US DOE to receive a $500,000 grant. It seeks to demonstrate the technology’s ability to reduce the ethanol plant’s carbon footprint and produce a carbon-negative chemical.

In an interview, RenewCO2 co-founders Anders Laursen and Karin Calvinho said their technology, which was developed at Rutgers University, is geared toward carbon emitters who can not easily pipe away their CO2 and who may have use for the resulting product.


“It’s a matter of economics,” said Calvinho, who serves as the company’s CTO. Using the RenewCO2 technology, the ethanol plant or other user is able to keep 45Q tax incentives for capturing CO2 while also creating a product that generates an additional revenue stream.

Additionally, the modular design of the technology prevents emitters from having to build expensive pipeline infrastructure for CO2, she added. “We want to help to facilitate the use of the CO2 on site,” she said.

One of the goals of the project is to measure the carbon intensity of these technologies in combination, which ultimately depends on the electricity source for the electrochemical process, similar to an electrolyzer, Laursen, who is the CEO, said.

“The main constraint from a location point of view is the availability of reliable and affordable green power,” Laursen added.

Creating a market

The principal target market for RenewCO2’s technology is existing producers of monoethylene glycol (MEG), which is used to make recycled plastics, as well as ethanol producers and other emitters with purified CO2 streams.

Producers of polyethylene terephthalate (PET) – one of the most recycled plastics globally – are also potential customers since they use MEG in their production process and have CO2 sources on site.

“Right now, MEG produced in the US is, for the most part, not polymerized into PET – it’s shipped overseas for making PET plastics used in textiles, and then made into fibers or shipped further,” Laursen said. “So if you can shorten that transport chain, you can reduce the CO2 emissions associated with the final product.”

RenewCO2 is looking for partners to help build the modular units, and is evaluating the purchase of existing PEM electrolyzer units that can be reconfigured, or having the units custom manufactured.

“We’re talking to potential manufacturing partners and evaluating whether we should do the manufacturing ourselves,” Calvinho said. And if they choose the latter route, she added, “we will have to build our own facilities, but it’s early to say.”

The company has raised a total of $10m in venture investment and grant funding, including a pre-seed round of over $2m from Energy Transition Ventures, a Houston-based venture capital fund.

While not currently fundraising, Laursen said they are always taking calls to get to know the investors that are interested in the space. He added that the company may need to raise additional capital in 12 to 18 months.

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Hydra Energy raising equity and debt capital for hydrogen refueling infrastructure

The hydrogen-as-a-service provider for commercial trucking fleets is pursuing an equity raise that will unlock a debt facility for scaling up hydrogen refueling infrastructure in Western Canada.

Hydra Energy, a hydrogen-as-a-service provider for commercial trucking fleets, is in the midst of a CAD 14m equity capital raise.

The Vancouver-based company is pursuing the equity raise in support of its Prince George hydrogen fueling station, which is set to be operational in 2024 and would be the largest in the world, Hydra CEO Jessica Verhagan.

The equity portion of the financing is needed to unlock an additional CAD 150m debt facility to complete initial scale-up of the company’s planned hydrogen corridor along Highway 16 in Western Canada, Verhagan added.

Verhagan said the company is not working with a financial advisor on the capital raise but could issue RFPs for advisory services in the future. She declined to name the provider of the proposed debt facility, apart from clarifying that it was not government-sponsored.

“To date, Hydra has been signing up commercial fleets and building out its initial hydrogen refuelling infrastructure throughout Western Canada, but the company is about to announce expansion throughout the rest of the country via licensing to a national fossil fuel distributor looking to extend its low-carbon alternative fuel offerings,” the executive said via email.

Hydra’s target market to date has been the roughly 5 million Class 8 trucks within North America, Verhagan said, with the company aiming to “conservatively” capture 1% of that market by 2030 through commercial discussions already underway. Hydra is also exploring expansion into the UK as well as Europe, Australia, and the Middle East.

“Hydra’s initial focus has been on proving out its Hydrogen-as-a-ServiceTM (HaaSTM) template which includes the company providing its proprietary hydrogen-diesel, co-combustion conversion kits to commercial fleets at zero cost (in exchange for long-term hydrogen fuel contracts at diesel equivalent prices) as well as an initial hydrogen refuelling station to service 65 Hydra- converted trucks in Prince George, B.C.,” she said.

Verhagan said the company will announce its first electrolysis partner for the Prince George hydrogen refueling station early next year. The station will be able to refuel – as quickly as diesel – up to 24 Hydra-converted trucks each hour across four bays. The station will provide hydrogen from two onsite, 5 MW electrolyzers powered with electricity from BC Hydro.

“The adoption of Hydra’s technology really comes down to availability of low carbon hydrogen – showing fleets it’s possible to go green cost-effectively – and government support to utilize hydrogen to reduce trucking emissions right now,” Verhagan said.

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Exclusive: Green hydrogen developer planning capital raises for distributed portfolio

A developer of US green hydrogen projects will need to access the project equity, debt and tax equity markets in the near term for a pipeline of distributed assets nationwide.

NovoHydrogen, the Colorado-based renewable hydrogen developer, will be in the market for project financing for a portfolio of distributed green hydrogen projects in 2024, CEO Matt McMonagle said.

The company, which recently agreed to a $20m capital raise with Modern Energy, is aiming to attract additional private equity and infrastructure investors for the projects it is developing, the executive said.

“The opportunity is really there for attractive risk-adjusted returns at the project level based on how we’re structuring these projects with long-term contracted revenue,” he said.

The company plans to bring its first projects online in late 2024 or 2025.

“We don’t have the project financing set at the point that we can announce, but that’s something myself and my team have done in our careers,” McMonagle said, adding that he’s focused on bankability since founding the company. “We wanted to be as easy for the lenders to underwrite as possible.”

No financial advisors have been attached to the project financings, McMonagle said. A recently announced Series A, first reported by ReSource in February, gave the company exposure to investors that want to participate in project financings, he said.

“We’ll really be ramping that process up, likely after the new year,” McMonagle added, declining to say how much the company would need to raise in 2024.

NovoHydrogen doesn’t have a timeline on a Series B, he said.

Distributed pipeline

The company looks to do onsite projects adjacent to consumption, McMonagle said. The first projects that will go online will be 10 MW and smaller.

“Typically the permitting is straightforward in that we’re adding equipment to an already impacted industrial site,” McMonagle said. He declined to elaborate on where these projects are located or what customers they will serve.

The company also has off-site, or near-site projects, where production is decoupled from consumption. But the company still calls those distributed because they are being developed with a targeted customer in mind.

“We want to be as close as possible to that customer,” he said. Those off-site projects typically are larger and will begin coming online in 2026 and 2027.  

In Texas NovoHydrogen has two large-scale green hydrogen developments in production, co-located with greenfield renewables projects, McMonagle said. Partners, including EPC, are in place for those efforts. The company also has projects in West Virginia, Pennsylvania, New Jersey and along the west coast.

“Where can we add the most value and have the biggest competitive advantage?” McMonagle said of the company’s geographic strategy. “We have very specific go-to-markets in each of those regions which we feel play to our strengths.”

NovoHydrogen is a member of the Pacific Northwest Hydrogen Hub and is involved with the Appalachian Regional Clean Hydrogen Hub (ARCH2), though not in line to receive DOE funding through that hub.

Post-IRA, green hydrogen projects will look much like renewables deals from the equity, tax equity and debt perspectives, he said.

“We’re structuring and setting up our projects to take advantage of that existing infrastructure and knowledge base of how to finance deals,” he said. New options on transferability will enable additional financing options as well.

No flipping

NovoHydrogen does not plan to flip projects before COD, McMonagle said.

“We are planning to deploy hundreds of millions if not billions of dollars in capex for these projects, and we’ll certainly need to partner with folks to deploy that capital,” McMonagle said. “But we will remain in deals with our customers because that relationship is really the fundamental value that we bring in our business.”

Hydrogen projects are different from renewables in that the customers need greater assurances of resiliency, security of supply and performance, than in a space like solar, he said.

Flipping projects before COD would be inconsistent with the trust required to attract offtakers.

“We don’t believe doing a flip reflects that level of importance and support and, frankly, incentive, behavioral incentive, that we have to show to our customers,” he said.

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