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OPAL Fuels inks credit facility led by Apollo credit arm

The $500m credit facility will fund the RNG company's growth initiatives. Apollo's infrastructure credit arm, Apterra, led the deal.

OPAL Fuels Inc., a vertically integrated producer and distributor of renewable natural gas (RNG) and renewable electricity, has closed on a new $500m senior secured credit facility, according to a news release.

The credit facility consolidates certain existing indebtedness and provides approximately $300 million in availability, which is anticipated to be used principally for development and construction of renewable energy projects.

“The closing of this Credit Facility provides OPAL Fuels significant liquidity and financial flexibility to fund our strategic growth initiatives,” said Jonathan Maurer, co-chief executive officer of OPAL Fuels. “This facility further supports growth through the funding of the next phase of our Advanced Development Pipeline. It also streamlines the balance sheet and strengthens our standing as a leading, vertically integrated presence in the industry.”

Apterra Infrastructure Capital LLC functioned as Sole Bookrunner and Syndication Agent for the Credit Facility and Bank of America, N.A. is Administrative Agent.

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Verdagy hires chief commercial officer from Plug Power

Electrolyzer start-up Verdagy has hired a chief commercial officer from Plug Power.

Verdagy, a green hydrogen electrolysis company with over a decade of technology and product development, announced today the appointment of David Bow as Chief Commercial Officer (CCO). Bow will lead Verdagy’s revenue, sales and business development.

“I am excited to join Verdagy at a pivotal time as the company scales up commercial deployments and decarbonizes hard-to-abate industries,” Bow said in a news release. “I will apply my decades of experience in the hydrogen and electrolyzer domains to successfully drive Verdagy’s revenue growth targets.”

Bow recently served as Executive Vice President of Plug Power’s Electrolyzer Solutions, where in three years, he advanced Plug from a new player in the electrolyzer system market to a global leader. He previously held the position of Senior Vice President of Global Business Development at Nel Hydrogen. Prior to Nel, Bow was the Senior Vice President of Sales and Marketing, Proton OnSite. Early in his career, Bow developed electrolyzers for the purification of biochemicals used in biotherapeutics.

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C-Zero closes financing round for gas decarbonization pilot

The company has closed a $34m dollar financing round led by SK Gas.

C-Zero Inc., a clean energy company that has developed a technology for natural gas decarbonization, has closed a $34m dollar financing round led by SK Gas, a subsidiary of South Korea’s second-largest conglomerate, the SK Group.

SK Gas was joined by two other new investors – Engie New Ventures and Trafigura, one of the world’s largest physical commodities trading companies – in addition to participation from all existing investors including Breakthrough Energy Ventures, Eni Next, Mitsubishi Heavy Industries and AP Ventures, according to a news release.

The funding will be used to build C-Zero’s first pilot plant, which is expected to be online in Q1 2023. The plant will be capable of producing up to 400kg of hydrogen per day from natural gas with no CO2 emissions.

“We are excited to be scaling up our innovative technology with experienced investors and partners who recognize the need to decarbonize natural gas and the opportunity that turquoise hydrogen production represents,” said Eric McFarland, CTO of C-Zero. “Natural gas provides a quarter of the world’s energy, so the scale of the opportunity ahead of us is enormous. But we cannot do it alone.”

“We are eager to bring C-Zero’s technology to Korea, where we see great synergies with our plans to build a hydrogen value chain complex in Ulsan,” said Brian (Byung Suk) Yoon, CEO of SK Gas. “SK Gas strongly believes in the potential of methane pyrolysis and its ability to help countries like Korea in their decarbonization efforts by producing low-cost, clean hydrogen.”

“We see significant applications for low-carbon hydrogen production through methane pyrolysis which complement ENGIE’s existing activities and skill sets. Investing early on in C-Zero’s journey brings us familiarity with the technology, and could help ENGIE achieve its goal of Net Zero by 2045” said Johann Boukhors, Managing Director of ENGIE New Ventures.

“Trafigura is backing C-Zero as part of a series of investments in clean energy technologies, including low-carbon fuels needed for the energy transition. C-Zero is reaching a critical stage with the construction of its first pilot plant to successfully demonstrate the production of low-carbon hydrogen from natural gas,” said Julien Rolland, Head of Power and Renewables for Trafigura.

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California outfit to build hydrogen-powered data center

Data center-as-a-service provider ECL is seeking to build its first 1 MW hydrogen-powered data center in 2Q23.

Data Center-as-a-Service pioneer ECL is seeking to build a modular, sustainable, off-grid data center that uses green hydrogen as its primary power source.

ECL will deliver data centers in 1 MW blocks with 99.9999% uptime, according to a news release. The company also announced $7m in seed financing co-led by Molex Ventures and Hyperwise Ventures.

The funds will be used by ECL to expand its market presence and in the construction of its first data center at the company’s Mountain View, Calif. headquarters, with completion scheduled for Q2 2023.

While other data center providers have deployed hydrogen fuel cells as backup power supplies, and with some conducting trials of systems forecast for production delivery in three-to-five years, ECL is the first provider to deliver a fully-green hydrogen-powered data center, the release says. This innovation is enabled by bringing together several technologies including green hydrogen-based power generation, battery energy storage and highly reliable power architecture without dependence on the utility grid. This maximizes efficiency and time to delivery and all but eliminates waste.

Lily Yeung, vice president at Molex Ventures and Nathan Shuchami, managing partner at Hyperwise Ventures join ECL Founder and CEO Yuval Bachar as members of the ECL board of directors.

Optimized for use by mid-sized data center operators – typically large companies with a mix of cloud and on-premises IT environments – ECL’s Datacenter-as-a-Service is two-thirds the total cost of ownership (TCO) of traditional colocation data center providers when measured over five years. The community-integrated data center design consumes no local resources, including power or water, and operates with zero emissions at extremely low noise levels. ECL’s modularity and lack of dependence on local utilities also means that its data centers can be designed and delivered much faster than others’, reducing planning and construction cycles from between 18 to 24 months to between six and nine months.

Bachar previously held top engineering, infrastructure and architecture roles at Microsoft Azure, LinkedIn, Facebook, Cisco, Juniper Networks and Digital Equipment Corporation (DEC). He was a founder of the Open19 project, a data center industry initiative establishing a new open standard for servers based on a common form factor, and is past president of the Open19 Foundation. He holds eight U.S. patents in data center, networking and system design and is the recipient of three Cisco Pioneer Awards.

“We are proud to be a part of this much-needed revolution in the data center industry, and look forward to working closely with Yuval and his team as they bring this peerless innovation to market,” said Shuchami. “ECL has a long lead on the competition in the delivery of a data center powered primarily by green hydrogen and we can’t wait to stand with them as they raise the curtain in Q2 2023.”

“It’s exciting to see ECL investing to bring tremendously relevant and novel experience into this high growth space around customizable modular data centers that can support the growing demand for advanced and flexible computational needs and sustainable power use,” said Lily Yeung, VP of Molex Ventures.

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Ammonia-to-power company planning up to $500m Series C

Ammonia-to-power start-up Amogy will launch a final equity raise once it establishes revenue milestones in 2023 and 2024

Amogy, an ammonia-to-power technology start-up, will likely launch a $400m to $500m Series C late next year, CEO Seonghoon Woo said in an interview.

The company should achieve its first revenues this year and grow those revenues in 2024 to reach a target valuation, Woo said. The company to date has not used a financial advisor.

Amogy is planning to use proceeds from a recent Series B-1 capital raise to expand into a Houston manufacturing facility as it seeks to bring its product to the market.

After demonstrating its technology on a drone, a tractor, and a semi truck, the company is currently working to install its ammonia-cracking technology on a tugboat, and plans to advance a commercialization strategy starting in 2024, Woo said.

The proceeds of the $139m capital raise announced last week will allow Amogy to expand into an already-built facility in Houston, Woo said. The company also plans to roughly double its workforce from 110 employees currently as it boosts capacity in R&D, manufacturing, and commercialization.

CEO Seonghoon Woo

Amogy was founded in 2020 by four MIT PhD alumni, including Woo, and is based in Brooklyn, New York.

Ammonia vs hydrogen

Woo believes using ammonia as a fuel and cracking it into hydrogen solves the transportation issues facing hydrogen, as ammonia is already a widely traded global commodity.

Similarly, at room temperature, ammonia can be stored as a liquid with only mild pressure (~8 bar), compared to the cryogenic requirements for liquid hydrogen.

And, according to a white paper commissioned by Amogy, the volumetric energy density of liquid ammonia is 12.7 megajoules per liter, which is higher than for liquid hydrogen at 8.5 MJ/L and compressed hydrogen at 4.7 MJ/L (at a pressure of 69 MPa in ambient temperature conditions), but lower than for diesel or gasoline.

“Over an equivalent distance, fueling a vehicle solely using ammonia would require approximately three times the internal tank volume needed for conventional diesel fuel but three times less than the volume required for compressed hydrogen,” the paper reads.

While Amogy’s technology is compatible with any color ammonia, Woo said regulations in Scandinavia and Europe give confidence that the global market for clean ammonia will become competitive with fossil-based fuels.

Scaling up

The recent capital raise gives Amogy roughly two years of runway before additional fundraising might be needed, at which point the company will have more visibility into revenue growth, Woo added.

The latest funding round was led by SK Innovation, joined by other global investors including Temasek, Korea Zinc, Aramco Ventures, AP Ventures, MOL PLUS, Yanmar Ventures, Zeon Ventures and DCVC.

The company previously raised roughly $70m in three separate funding rounds, with proceeds allowing it to demonstrate the drone, heavy-duty tractor, and semi truck. Woo said the tractor project drew interest from John Deere, which sent representatives to observe and offer some assistance on the retrofit.

In previous capital raises, Woo said Amogy has encountered investor reluctance to enter what is considered an early market with regulatory and economic risk, with some investors wanting to wait as much as another two years before gaining exposure to the market. The strongest interest has come from upstream producers.

Amogy plans to continue scaling up its technology in the maritime industry to cargo and container ships as well as offshore supply vessels, Woo said.

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Waste-to-hydrogen developer to close $100m capital raise this month

Raven SR’s C-round of financing is being run by two bulge-bracket banks, and the firm has received widespread interest from private equity and corporate strategics.

Raven SR, a US waste-to-hydrogen developer, is working on a $100m capital raise that’s expected to wrap up this month, according to four sources familiar with the matter.

Raven’s C-round of financing is being run by Barclays and Bank of America. The firm has received widespread interest from private equity and corporate strategics.

Raven CEO Matt Murdock said on the sidelines of the Hydrogen Americas event in Washington D.C. that he was hoping to have the raise done by Thanksgiving.

Headquartered in Wyoming with projects in California and Spain, the company uses a steam/CO2 reforming process that transforms municipal solid waste, organic waste and methane into clean fuels.

In August, 2021, Raven closed on a $20m strategic investment from Chevron U.S.A., ITOCHU Corporation, Hyzon Motors Inc. and Ascent Hydrogen Fund. Samsung Ventures made a strategic investment earlier this year, allowing the company to expand into the Asia-Pacific market.

The company has partnered with INNIO to use its Jenbacher engines to provide renewable power and heat to Raven SR’s first waste-to-hydrogen production facility at the Republic Services West Contra Costa Sanitary Landfill in Richmond, California.

Raven SR plans to bring the plant online in the first quarter of 2023, initially processing up to 99.9 tons of organic waste per day and producing up to 2,000 metric tons per year of hydrogen.

In Aragón, Spain, Raven SR is aiming to bring a second project online in 2023 that will produce 1,600 metric tons per year of renewable hydrogen from approximately 75 tons of organic solid waste per day.

Raven SR recently announced the election of Mark Gordon of Ascent Fund and Michael Hoban of Chevron New Energies to its Board of Directors.

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Hydrogen liquefaction provider looking for growth equity

An emerging liquid hydrogen and liquefaction management company is seeking equity to support manufacturing expansion in Europe and the US.

Absolut Hydrogen, a French liquid hydrogen and liquefaction company based in Grenoble, is looking for equity to scale up production following operations of their demonstration project in France, CEO Jerome Lacapere said in an interview.

Absolut has a partnership with SAF firm ZeroAvia to develop refueling infrastructure for aircraft, and is primarily focused on serving the mobility sector.

A subsidiary of Groupe Absolut, the company offers a full LH2 product range with an entry small-scale hydrogen liquefaction system (< 50 kg/day), a 100 kg/day Turbo-Brayton based H2 liquefier and a 1T/day liquefier based on the same technology.The company's liquefaction demonstration plant in France should produce 100 kg per day, Lacapere said. After that Absolut will need new investment to scale production.Longer term the company has its sites on the US transport market, Lacapere said.“We need to grow in the United States,” Lacapere said. The company will need US-based advisory services and offices in the country to do that, he said.

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