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Direct ocean capture firm Captura expands capital raise to $45m

Captura has added National Grid Partners and Japan Airlines Innovation Fund as investors.

Direct ocean capture firm Captura has further expanded its Series A funding round leading to a total of $45.3m.

This expanded round underscores Captura’s momentum in scaling up and commercializing its Direct Ocean Capture (DOC) technology, a high-potential climate solution that harnesses the ocean’s natural role in carbon absorption, the company said in a press release.

Captura added National Grid Partners and Japan Airlines Innovation Fund/Translink Capital as new investors in the round, alongside a number of the company’s existing investors.

This latest increase in funding follows two recent, previously announced raises in January 2024 and January 2023 highlighting the rapid progress of Captura’s commercialization strategy. With two fully operational pilot plants in California and an upcoming pilot plant to be installed in Norway in late 2024 in partnership with Equinor, its first commercial deployments are expected to remove tens of thousands of tons of atmospheric carbon dioxide (CO2) annually.

Captura’s DOC technology offers an approach to carbon removal that extracts CO2 directly from the ocean, thereby enhancing the ocean’s natural ability to absorb atmospheric CO2.

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OCOChem raises $5m seed round

The Washington-based startup has partnered with investor INPEX to evaluate collaboration opportunities on the transportation of CO2 and clean hydrogen.

Carbon conversion startup OCOchem has raised $5m in Seed funding from lead investor TO VC, according to a news release.

Japan’s INPEX Corp., the LCY Lee Family Office, and MIH Capital Management also participated in the round. They join Halliburton Labs, Halliburton Company’s energy and climate tech accelerator, which has been supporting OCOChem since 2021.

The Richland, Wash.-based company is commercializing a way to make highly versatile carbon-neutral platform molecules by electrochemically converting recycled CO2, water and clean electricity into formic acid and formate chemicals, for use in agricultural and industrial applications.

“Using renewable energy, OCOChem’s technology enables the conversion of water and carbon dioxide into formic acid, which is stable under ambient conditions.” The release states. “The formic acid can also be converted to useful carbon and hydrogen components with minimal energy input.”

In addition to investing in the company, INPEX, Japan’s largest oil and gas production company, has partnered with OCOchem to evaluate collaboration opportunities leveraging the company’s technology to transport CO2 and clean hydrogen.

OCOchem will use the new funds to scale its modular carbon conversion technology to industrial proportions and build a pilot plant for commercial demonstration operations.

“Using OCOchem technology and clean electricity, we can now do what plants and trees have been able to do for billions of years — convert CO2 and water into useful organic molecules using clean energy. But unlike photosynthesis, we can do it faster and more efficiently at a lower cost, using much less land,” said Todd Brix, co-founder and CEO of OCOchem, in the news release.

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Ohmium inks 120 MW electrolyzer deal with NovoHydrogen

The electrolyzers will provide 120 MW of green hydrogen capacity to an IPP to run through a natural gas plant in New Jersey.

California-based Ohmium International has finalized an agreement to provide Colorado-based NovoHydrogen with PEM Electrolyzers, according to a press release.

The electrolyzers will be used to provide 120 MW of green hydrogen capacity to an independent power producer to run at a natural gas peaking power plant in New Jersey.

Ohmium manufactures standardized interlocking modular PEM electrolyzers that produce pressurized high-purity hydrogen.

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EU innovation fund contributes to two RWE projects

The FUREC project in the Netherlands and an offshore wind farm in Germany are among a total of 17 projects selected by the EU Innovation Fund for the preparation of grant agreements.

German multinational RWE is involved in two hydrogen projects that have been pre-selected for funding by the EU Innovation Fund, according to a press release. The FUREC project in the Netherlands and an offshore wind farm in Germany are among a total of 17 projects selected by the EU Innovation Fund for the preparation of grant agreements.

RWE wants to produce hydrogen for the chemical industry. Household waste from Limburg in the Netherlands is to replace natural gas. The FUREC project includes a plant under construction in Limburg to process household waste into pellets, to then be converted into hydrogen in a separate plant in Limburg’s Chemelot industrial park.

Nordsee Two is majority owned by RWE (51%) and minority by Canadian partner Northland Power (49%). A planned 433 MW wind farm off the German coast is scheduled to start commercial operation in 2026. The partners aim to demonstrate the technical and commercial feasibility of producing hydrogen at sea. An electrolyser is planned to be integrated into the offshore wind farm for the production of green hydrogen for vessel fueling and to supply emergency power to the offshore substation.

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Green hydrogen developer in exclusivity with new investor

New York-based green hydrogen developer Ambient Fuels is in exclusivity with a new investor, with proceeds from the capital raise slated to fund project development and acquisitions.

Ambient Fuels, the New York-based green hydrogen developer, is in exclusivity with a new investor for a bilateral capital raise, CEO Jacob Susman said in an interview.

Susman declined to name the private equity provider but said the backing will allow Ambient to develop several projects, as well as acquire projects from other developers. The deal is proceeding without the help of a financial advisor.

Once the company reaches its run rate, Ambient plans to complete three to four projects per year costing $50m and up, Susman said, with the first expected to reach operation in 2025.

The company’s initial geographic focus is on the Gulf Coast, centered on the Port of Corpus Christi, Susman said. New York, California, the Pacific Northwest and traditional wind energy states in the Midwest and West are areas of additional work.

Hydrogen hubs

Ambient is closely following the DOE hydrogen hub applications process, Susman said. Which regions are awarded funding could make a difference for where the company locates new projects.

According to ReSource‘s project tracker, Ambient is involved in at least two of the hubs that were encouraged by the DOE to submit a final application: California’s Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), and the Port of Corpus Christi Green Hydrogen Hub.

In 2021 Ambient completed a funding round led by SJF Ventures. Several other VC funds and angel investors also participated.

Open for offtake business  

Ambient is looking for offtakers in industries that use the molecules for feedstock and energy but need to meet decarbonization targets.

The company is working to provide hydrogen as an industrial feedstock and energy source to sectors including transportation, oil and gas, mining, glass and steel production and automobile manufacturing. Supplying hydrogen for ammonia fertilizer is another target market.

Advisors with clients in those industries should reach out to Ambient, Susman said.

M&A strategy

Ambient strives to be a fully integrated devco with the resources, capital and expertise to take a project to fruition, Susman said. Projects developed by smaller companies can look to Ambient as a buyer for their projects.

“We want to be a home for those great projects that are being developed independently,” Susman said. “Absolutely we will be acquiring projects.”

Smaller developers with good projects could also be targets for takeover with the backing from the new investor, Susman said. The firm could also make a technology buy in software for project development, operations, or possibly the equipment side, though Susman said there’s a low probability of that.

Financial advisors that have leads on good projects Ambient can acquire are welcome to pitch, Susman said.

Susman said he is not in a hurry to exit Ambient and can see the company being independently financed for years to come.

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Exclusive: Banker enlisted for CO2-to-SAF capital raise

BofA Securities is running a capital raise for a US-based CO2-to-SAF technology provider and project developer with a global pipeline of projects.

eFuels developer Infinium has launched a Series C capital raise along with efforts to advance unannounced projects in its development pipeline, Ayesha Choudhury, head of capital markets, said in an interview.

Bank of America has been engaged to advise on the capital raise.

Infinium recently announced the existence of Project Roadrunner, located in West Texas, which will convert an existing brownfield gas-to-liquids project into an eFuels facility delivering products to both US and international markets. Breakthrough Energy Catalyst has contributed $75m in project equity.

Infinium, which launched in 2020, closed a $69m Series B in 2021, with Amazon, NextEra and Mitsubishi Heavy Industries participating. Its Project Pathfinder in Corpus Christi is fully capitalized.

About a dozen projects, split roughly 50/50 between North America and the rest of the world, are in development now, Choudhury said. The company is always scouting new projects and is looking for partners to provide CO2, develop power generation and offtake end products.

A CO2 feedstock agreement for a US Midwest project with BlackRock-backed Navigator CO2 Ventures was recently scrapped after the latter developer cancelled its CO2 pipeline project.

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Exclusive: OCI Global exploring ammonia and methanol asset sales

Global ammonia and methanol producer OCI Global is working with an investment bank to explore a sale of ammonia and methanol assets as part of the re-opening of its strategic business review.

OCI Global is evaluating a sale of several ammonia and methanol assets as part of the re-opening of its strategic business review.

The global producer and distributor of methanol and ammonia is working with Morgan Stanley to explore a sale of its ammonia production facility in Beaumont, Texas, as well as the co-located blue ammonia project under development, according to sources familiar with the matter.

The evaluation also includes OCI’s methanol business, one of the sources said.

Representatives of OCI and Morgan Stanley did not respond to requests for comment.

As part of the earlier strategic review announced last year, OCI in December announced the divestiture of its 50% stake in Fertiglobe to ADNOC, and the sale of its Iowa Fertilizer Company to Koch Industries, bringing in $6.2bn in total net proceeds.

However, OCI has received additional inbound inquiries from potential acquirers for the remaining business, leading it to re-open the review, CEO Ahmed El-Hoshy said last month on OCI’s 4Q23 earnings call.

“As such, OCI is exploring further value creative strategic actions across the portfolio, including the previously announced equity participation in its Texas blue clean ammonia project,” he said, adding: “All options are on the table.”

The comments echoed the remarks of Nassef Sawiris, a 40% shareholder of OCI, who recently told the Financial Times that OCI could sell off most of its assets and become a shell for acquisitions.

In the earnings presentation, El-Hoshy took time to lay out the remaining pieces of the business: in particular, OCI’s 350 ktpa ammonia facility in Beaumont; OCI Methanol Group, encompassing 2 million tons of production capacity in the US and a shuttered Dutch methanol plant; and its European ammonia/nitrogen assets.

Texas blue

The Texas blue ammonia project is a 1.1 million-tons-per-year facility that OCI touts as the only greenfield blue ammonia project to reach FID to date. The company has invested $500m in the project as of February 24, out of a total $1bn expected investment, according to a presentation.

“Commercial discussions for long-term product offtake and equity investments in the project are at advanced stages with multiple parties,” El-Hoshy said. “This reflects the very strong commercial interest and increasing appetite from the strategics to pay a price premium to secure long-term low-carbon ammonia.”

El-Hoshy’s comments highlight the fact that, unlike most projects in development, OCI took FID on the Texas blue facility without an offtake agreement in place. The executive did, however, highlight the first-mover cost advantages from breaking ground on the project early and avoiding construction cost inflation.

Additionally, the project was designed to accommodate a second 1.1 mtpa blue ammonia production line, which would be easier to build given existing utilities and infrastructure, El-Hoshy said, allowing for an opportunity to capitalize on additional clean ammonia demand at low development costs.

“Line 2 probably has the biggest advantage, we think, in North America in terms of building a plant where a lot of the existing outside the battery limits items and utilities are already in place,” he said, emphasizing that by moving early on the first phase, they avoided some of the inflationary EPC pressures of recent years. 

At the facility OCI will buy clean hydrogen and nitrogen over the fence from Linde, and Linde, in turn, will capture and sequester CO2 via an agreement with ExxonMobil.

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