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Quantron kicks off Series B equity raise

The German and American mobility provider is seeking to raise EUR 200m in a Series B equity raise, as the company plans to become a one-stop-shop for hydrogen-powered commercial vehicles, according to a teaser.

Quantron, the Germany and US-based hydrogen trucking manufacturer, is seeking to raise EUR 200m in a Series B capital raise, and has further plans to raise money in a Series C in 2024 or 2025, followed by an anticipated IPO beyond 2025.

The company plans to use proceeds from the Series B accelerate the roll-out of existing production and make additional market entries included expanding its operations in the US, according to a sale teaser seen by The Hydrogen Source. Stifel is leading the capital raise, as previously reported.

By advancing a full-scale zero-emission ecosystem, Quantron is seeking to take part in the sourcing and distribution of green energy and hydrogen, as well as building fuel cell and battery electric vehicles and components and offering customer solutions like aftersales, the teaser notes.

Quantron, which has offices in Augsburg, Germany and Detroit, Michigan, has brought in about EUR 28m in revenues since inception and expects EUR 60m in revenue this year, fueled by a EUR 100m order book and pipeline. The company has put 150 vehicles on the road to date and has 130 employees.

Its Series A capital raise of EUR 45m, completed in September, 2022, implied a EUR 250m pre-money valuation. The ongoing EUR 200m capital raise will come in the form of the Series B financing as well as working capital facilities.

The company recently announced commitments with FirstElement Fuel and Goldstone Technologies Limited. Quantron debuted its Class 8 hydrogen fuel-cell truck in the US at the Advanced Clean Transportation Expo in Anaheim, California in April.

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Schlumberger changes name to SLB, eyes hydrogen opportunities

Schlumberger has changed its name to SLB and is exploring opportunities in the hydrogen sector, among other areas in its New Energy business.

Schlumberger has changed its name to SLB, according to a press release.

The change underscores the company’s commitment to a decarbonized future, the release states.

In 2020, SLB launched its New Energy business to explore partnerships and opportunities in clean technology. Hydrogen is one of five areas SLB is looking to develop through New Energy, along with carbon solutions, geothermal and geoenergy, energy storage and critical minerals.

This includes Genvia, a clean hydrogen technology company formed as a public/private partnership with France’s renewables research agency, CEA, and other partners.

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IEA report outlines case for cost reductions in e-fuels

The International Energy Agency assesses needed cost reductions, resources and infrastructure investments for achieving a 10% share of e-fuels in aviation and shipping by 2030.

The International Energy Agency’s report on the role of e-fuels in decarbonizing transport finds that e-fuels’ cost gap with fossil fuels could substantially reduce by 2030, an important finding for the advancement of a family of emerging e-fuel technologies. 

In the report, which was published last month, the IEA aims to assess the implications of growth in e-fuels in terms of needed cost reductions, resources and infrastructure investments of an assumed goal of achieving a 10% share of e-fuels in aviation and shipping by 2030. 

For instance, the cost of low-emission e-kerosene might drop to $50/GJ ($2,150 per ton), making it competitive with biomass-based sustainable aviation fuels – but still 2 – 3x more expensive than fossil-based fuels. 

The costs for low-emission e-methanol and e-ammonia could also decrease, opening the door for their use as low-emission fuels in shipping. Interestingly, the production of e-fuels for aviation will also result in a significant amount of e-gasoline as a by-product, the report notes.

In terms of impact on transport prices, a 10% share of low-emission e-fuels would only modestly increase the cost of transport, according to the report. For example, e-kerosene would raise the ticket price of a flight using 10% of e-fuels by only 5%. 

However, the adoption of e-methanol and e-ammonia in shipping will necessitate significant investments in infrastructure and ships. The overall cost for a fully e-ammonia or e-methanol-fueled container ship would be 75% higher than a conventional fossil-fuel-powered ship, yet this represents just 1-2% of the typical value of goods transported in these containers.

The production of e-fuels generally suffers from low efficiency due to multiple conversion steps and losses, leading to high resource and infrastructure demand, according to the report. Producing significant amounts of low-emission e-fuels could increase the demand for renewable electricity by about 2,000 TWh/yr by 2030. This represents about one-fifth of the growth of low-emission electricity expected in this decade under certain policy scenarios. 

The production of e-fuels can exploit the potential of remote locations with high-quality renewable resources and vast land available for large-scale projects. However, achieving a 10% share of e-fuels in aviation and shipping would require a significant increase in electrolyser capacity, equivalent to the entire size of the global electrolyser project pipeline to 2030.

The accelerated deployment of low-emission e-fuels for shipping would require substantial investments in refueling infrastructure and vessels, especially for e-ammonia or e-methanol. Achieving a 10% share in shipping would demand approximately 70 Mt/yr of these fuels. The financial investment in shipping capacity and bunkering infrastructure would be substantial, yet represent less than 5% of the cumulative shipbuilding market size over the period 2023-2030.

Producing carbon-containing low-emission e-kerosene and e-methanol would necessitate a massive increase in CO₂ utilization, with significant potential synergy with biofuels production. Around 200 Mt CO₂ would be required for a 10% share of e-kerosene in aviation and 150 Mt CO₂ for the same share in shipping if using e-methanol. 

Access to CO₂ is a major constraint for carbon-containing low-emission e-fuels, and the best wind and solar resources are not always co-located with significant bioenergy resources. Direct air capture (DAC) of CO₂ could provide an unlimited source of CO₂ feedstock without geographic constraints, but it is expected to remain a high-cost option in 2030, the report projects.

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AIMCo establishes $1bn energy transition fund

The Alberta Investment Management Corporation, part of a consortium of investors in the ACES Delta hydrogen project, has established a $1bn funding pool dedicated to the energy transition and decarbonization.

The Alberta Investment Management Corporation (AIMCo) today outlined its approach to climate investing and introduced its Energy Transition Opportunities Pool (ETOP), which is a $1bn fund dedicated to investing in the global energy transition and decarbonization sectors.

“AIMCo has been strategically evaluating climate change risks and opportunities for the last decade and the organization has a strong track record of making investments in the energy transition space,” said Marlene Puffer, Chief Investment Officer, AIMCo, in a news release. “Our climate approach provides important transparency around how we consider climate in our investments and how we will, over the long run, help reduce emissions.”

AIMCo’s climate approach includes the introduction of a climate taxonomy that evaluates and classifies the energy transition readiness and carbon intensity of existing and new investments. This tool helps the investment teams analyze climate risk within client portfolios, as well as measure and improve total portfolio transition readiness.

The initial $1bn in AIMCo’s ETOP represents new capital. The investments made through ETOP will be in addition to AIMCo’s other climate-related investments across asset classes. Many of AIMCo’s clients have allocated funds to the new pool, which will offer them exposure to a variety of energy transition opportunities and themes, including:

  • Industrial decarbonization, carbon capture and sequestration
  • Sustainable solutions and renewable fuels
  • Low-carbon renewable energy production and related technologies
  • Electrification, storage and energy efficiency

“We are gratified by our clients’ commitment both to the new pool and to our shared objective of supporting and benefiting from energy transition and decarbonization opportunities,” said Ben Hawkins, Executive Managing Director, Head of Infrastructure & Renewable Resources.

For more information about the climate approach and the ETOP, please click here.

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CO2-to-SAF firm in $100m capital raise

A New York-based CO2-to-SAF firm is raising about $100m in equity and debt.

Dimensional Energy, the CO2-to-SAF startup based in Ithaca, New York, is in the late stages of a roughly $100m equity and debt round led internally, according to a source familiar with the matter.

The company is down to a shortlist of potential investors with two or three weeks until targeted close, the source said.

Dimensional did not respond to a request for comment.

Proprietary reactor technology powered by renewables is the core of Dimension’s regenerative process. According to its website, the company can make 15 barrels of fuel from every 10 tons of carbon sources form the atmosphere and hydrogen derived form electrolysis.

In May, the company signed an offtake agreement for 5 million gallons per year with Boom Supersonic, which is seeking to build a supersonic airliner that will travel at speeds twice as fast as today’s commercial jets.

Dimensional started production at a pilot-scale COutilization plant in Tucson, Arizona last year.

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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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Exclusive: Midwest renewables developer launches capital raise

A Midwest renewables developer has launched a $340m capital raise for a wind-to-hydrogen operation in the US heartland.

Zero6, the Minneapolis-based renewables developer, owner and operator, recently launched a process to raise $340m in project capital for its portion of the Lake Preston Biofuels Project in South Dakota, senior managing director Howard Stern said in an interview.The company, previously known as Juhl Energy, is partnered with Colorado-based Gevo, which plans to produce SAF on 240 acres at Lake Preston in a project dubbed Net-Zero 1.Zero6 will develop 20 MW of green hydrogen production adjacent to Net-Zero 1 powered by a 99 MW wind farm located 10 miles from the SAF site, Stern said.Plans call for FID late this year, he said.Zero6 met with several financial advisors for the raise, but decided to try and conduct it in-house, Stern said. The company has not ruled out help from an advisor for this raise and could need those services in the future.The goal is to have an anchor investor in place by May, Stern said. The company is open to strategic or financial investors.Zero6’s strategy is akin to a traditional private equity play, holding a project for five to ten years of operation, Stern said. That could change depending on new investors’ outlook.According to the ReSource database, Gevo has additional projects in Illinois, Iowa and Nebraska.Stern said Zero6 sees opportunities to replicate the Lake Preston strategy in other parts of the country.The Lake Preston project has been tied to the development of carbon capture pipelines through South Dakota, namely the Summit Carbon Solutions CO2 pipeline. Gevo officials have made public comments noting that if the Summit pipeline does not get built, it would disadvantage the Lake Preston project on the basis of its carbon intensity score, and the company may seek options elsewhere.
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