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Exclusive: CO2-to-SAF tech firm in new capital raise

A technology company with a novel process to convert CO2 into fuels and chemicals is extending a capital raise that previously closed with inputs from several oil and airline majors.

OXCCU, the UK-based clean fuels production company, is extending a Series A raise it closed last year with an eye on growth in the US, CEO Andrew Symes told ReSource. 

The raise, characterized as a Series A2 by Symes, is being conducted in-house, he said. It builds on the GBP 18m (USD 22.7m) Series A it finished last year, led by Clean Energy Ventures.

Aramco, ENI and United Airlines are also among the company’s backers.

OXCCU, a spin out of Oxford University, plans to raise additional money to scale its catalytic process converting hydrogen and carbon dioxide into sustainable aviation fuel (SAF) and other products. A patent grant, filed in 2020, is anticipated this year.

“We don’t want to be the project developer, we want to license to the project developer,” Symes said of the company’s business model.

Fuel made combining carbon dioxide (captured from industry or power plants) with green or clean hydrogen will be cheaper based on OXCCU’s iron-catalyst process, Symes said, which requires one step instead of the traditional two-step process.

OXCCU is looking for partners to engage with on sustainable aviation fuel (SAF) projects in the US, Symes said. This year the company will deliver a pilot plant in the US and plans to complete a 160 kilogram-per-day plant in Sheffield, UK in 2026.

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Electric Hydrogen to build electrolyzer gigafactory in Massachusetts

The VC-backed company plans to build a 1.2 GW factory, where it will produce its “world’s most powerful” 100 MW electrolyzer offering.

Electric Hydrogen Co., a manufacturer of advanced, industrial-scale hydrogen electrolyzer technology, announced the location of its first factory in Devens, Massachusetts.

The company has leased a newly constructed 187,000 ft2 facility and is now hiring production team members. The Devens factory will have an annual manufacturing capacity of 1.2 GW with production of EH2’s 100 MW green hydrogen electrolyzers commencing in Q1 2024.

“Our company has a single purpose: to make molecules to decarbonize our world,” stated David Eaglesham, EH2’s CTO and co-founder. “Industrial sectors such as fertilizer and steel need new ways to reliably replace fossil resources at costs that work. The machines we will produce at our new factory in Devens will have a transformational impact by enabling ultra-low-cost green hydrogen at an industrial scale.”

Green hydrogen, made by breaking the chemical bonds of water using renewable electricity, is a growth industry that can make an immediate impact on the global climate crisis. Electric Hydrogen expects its technology to establish the standard for industry-wide cost reduction to make green hydrogen cheaper than fossil alternatives.

“There are a lot of factory announcements in our industry, but not a lot of real capacity being built,” said Raffi Garabedian, EH2’s Chief Executive Officer and Co-founder. “We have a backlog of customer orders to fulfill and are moving quickly to build and ship the world’s most powerful electrolyzers.”

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Viking testing first hydrogen-powered cruise ship

Viking is using the small H2 system to test how hydrogen fuel could be used at a larger scale.

The Viking cruise line has received its first ship testing the use of hydrogen power, according to a press release.

The ship, the Viking Neptune, is equipped with a small hydrogen fuel system for on board operations. Viking is using the small system as a test to determine how hydrogen fuel could be used at a larger scale in future newbuilds.

Delivery took place when the ship was presented at Fincantieri’s shipyard in Ancona, Italy.

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Gas separations provider raises $11m seed round

An industrial separations technology company that purifies gases has raised an oversubscribed VC round in addition to funding from the DOE.

Osmoses, an industrial separations technology company that purifies gases, has raised an oversubscribed $11m seed round led by Energy Capital Ventures, according to a news release.

Additional participating investors include Engine Ventures, Fine Structure Ventures, New Climate Ventures, Collaborative Fund, Little Green Bamboo, BlindSpot Ventures and several prominent angel investors, including Martin Madaus, the former CEO of Millipore Corporation.

In addition to its venture capital funding, Osmoses recently received a $1.5m grant from the US Department of Energy (DOE), as well as additional grant support from ARPA-E and NSF, among other organizations.

Osmoses will use the funding to develop commercial scale membrane modules for field deployment and establish pilot partnerships.

“In the coming months, Osmoses will double its full-time employee headcount, increase its pilot programs with chemical and petrochemical companies, utilities, and alternative energy companies, and develop partnerships with engineering and manufacturing firms,” the release states.

Gas molecules like hydrogen, biomethane, and oxygen are essential ingredients for alternative, low-carbon energy production, the release states. Because these gases don’t naturally occur in a form pure enough for direct use, they must first be separated, but their size and volatility makes doing so energy-intense, and expensive.

Today’s industrial separation processes, including cryogenic processes, distillation, and solvent absorption, account for 15% of the world’s energy consumption, the release states. CO2 emissions from energy combustion and industrial processes accounted for 89% of energy-related greenhouse gas emissions in 2022.

“Membrane technology, which operates as molecular filters to separate gas molecules from one another, has the potential to reduce energy consumption, but widespread implementation remains limited due to product loss and high operating costs,” the release states. Osmoses has developed a patented novel membrane technology that purifies gas molecules with unprecedented flux and selectivity, meaning lower capital requirements and operating costs for customers, with a significantly smaller physical footprint than today’s traditional separation processes – all while reducing industrial energy consumption by up to 90%.”

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CCS developer initiating discussions for corporate capital raise

Following its sale of a stake in a mega-scale carbon capture project in the Gulf Coast, Carbonvert is planning to initiate conversations to raise additional corporate capital, with plans to deploy as much as $500m into new projects.

Carbonvert, a Houston-based carbon capture and sequestration developer, is planning to start conversations soon with an eye to raise corporate capital that will allow it to advance mega-scale CCS projects, CEO Alex Tiller said in an interview.

Owned by a group of outside investors and the management team, Carbonvert is advancing a business model that takes advantage of the group’s expertise in early-stage project development, Tiller said.

The company recently completed the sale of its 25% interest in the Bayou Bend CCS project to Norway’s Equinor, which will now own the development alongside Chevron (50%) and Talos Energy (25%).

Bayou Bend CCS is the type of mega-scale project that Carbonvert will be pursuing in coming years, and for which the company will need to raise as much as $500m in corporate capital due to the capital-intensive nature of the projects, Tiller said.

Chevron last year bought its 50% operating stake in Bayou Bend for $50m, implying a $100m valuation for the project, which is positioned to become one of the largest CCS developments in the US for industrial emitters, with nearly 140,000 gross acres of pore space – 100,000 onshore and 40,000 offshore.

Carbonvert’s stake sale, announced yesterday, was “a positive result” for the company, Tiller said, though he declined to comment further on the valuation.

“It delivers capital to our balance sheet and allows us to grow our pipeline of projects and fund additional projects,” he said. Carbonvert used Jefferies as sell-side financial advisor in the sale to Equinor, he added.

Tiller, a veteran of the renewable energy industry, is a founding member of Carbonvert alongside Chief Development Officer Jan Sherman, who previously had a 30-year career with Shell and helped build the oil major’s Quest CCS project in Alberta, Canada.

For the upcoming capital raise, Carbonvert has not decided on whether to use a financial advisor; the structure of the capital raise will likely determine if an advisor is needed, Tiller said.

“We’ll definitely be out raising more corporate capital – these projects are tremendously expensive,” he said. “We’ll be starting conversations soon.”

The company has a line of sight to deploy as much as $500m of capital into its own projects over the next several years, he said, an indication of how much capital it will need to raise.

“These are large infrastructure projects that are going to take many years to bring to fruition, followed by decades of operations,” he said. “We live at the front end of the projects,” he added, “and when the appropriate parties are at the table, it’s really an act of humility to say ‘hey, maybe we’ve taken this as far as we can or should,’” a reference to finding the right time to sell the company’s stakes in the projects it is developing.

In addition to the Bayou Bend CCS project, Carbonvert is part of a consortium that’s developing a carbon hub in Wyoming. The company is also collaborating on an exploratory study for the direct air capture and storage of CO2 emissions from a nuclear power plant in Alabama.

“You can expect to see project announcements that look like Bayou Bend in the future,” Tiller said. “We like that type of mega-scale project, we like offshore, and we’re also pursuing some opportunities onshore that are less mature.”

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Hydrogen technology firm hires advisor for capital raise

A firm with a technology to produce green hydrogen from sunlight without electrolysis is prepping a capital raise.

BoMax Hydrogen, a Florida-based hydrogen technology firm, is preparing to launch a capital raise later this month, according to two sources familiar with the matter.

Boutique advisory firm Taylor DeJongh has been retained to run the process, the sources said. Teasers will likely go out in two weeks.

BoMax is seeking to raise around $15m in a Series A round, the sources added.

The company touts e a novel technology making hydrogen from visible light without the need for solar electrolysis, according to a pre-teaser marketing document seen by ReSource. An alpha prototype has been awarded by the US Department of Energy.

The technology, which does not require rare earth minerals, produces hydrogen at point of need and has been reviewed by scientists at Utah State University.

To date the company has raised about $5m, one of the sources said. That came mostly from friends and family and one Japanese investor.

Funds from the Series A will be used to make a beta prototype, scale operations at the company’s labs in Orlando and prepare for commercial production.

BoMax and Taylor DeJonghe did not respond to requests for comment.

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Pennsylvania blue hydrogen DevCo planning project equity raise

A natural gas company has tapped an advisor and is planning to launch a process to raise project equity in the fall for a blue hydrogen production facility with contracted offtake in Pennsylvania.

KeyState Energy, a Pennsylvania-based development company, has engaged a financial advisor to launch a $60m equity process in September, according to two sources familiar with the matter.

Young America Capital is advising on the forthcoming process, the sources said.

The capital raise is for the company’s marquee Natural Gas Synthesis blue hydrogen project in Clinton County, one of the sources said. CapEx for the project is estimated at $1.5bn. OCGI is a pre-FEED investor in the project and the coming equity raise is meant to attract a FEED investor.

The 200 mtpd project has contracted offtake with Nikola Corporation, one of the sources said. In October it was reported that Nikola and KeyState were working towards a definitive agreement to expand the hydrogen supply for Nikola’s zero-emissions heavy-duty fuel cell electric vehicles.

The 7,000-acre natural gas and geologic storage site was formerly known for coal, iron and rail, according to the company’s website.

KeyState Energy did not respond to a request for comment. YAC declined to comment.

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