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Raven SR raises $20m from strategic investors

Wyoming-based renewable fuels company Raven SR has closed a USD 20m strategic investment.

Wyoming-based renewable fuels company Raven SR has closed a $20m strategic investment, according to a press release.

Chevron U.S.A., ITOCHU Corporation, Hyzon Motors Inc. and Ascent Hydrogen Fund participated. Raven SR plans to build modular waste-to-green hydrogen production units and renewable synthetic fuel facilities initially in California and then worldwide.

Raven SR’s Steam/CO2 Reformation process involves no combustion, unlike incineration or gasification. The company’s process can also produce other renewable energy products such as synthetic liquid fuels (diesel, Jet A, mil-spec JP-8), additives and solvents (such as acetone, butanol, and naphtha) and sustainable aviation fuel (SAF).

The investment follows an agreement between Raven and Hyzon Motors to build up to 250 hydrogen production facilities across the United States and globally. Hyzon Motors, with US operations based in Rochester, New York, is a supplier of fuel cell-powered commercial vehicles.

Raven SR’s first renewable fuel production facilities will be built at landfills and will produce fuel for Northern California hydrogen fuel stations and for Hyzon’s hydrogen hubs. These initial facilities are expected to process approximately 200 tons of organic waste daily, yielding green hydrogen and producing on-site energy.

Raven SR’s production units are modular. In addition to landfills, they can also be placed at wastewater treatment plants and agriculture sites.

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Carbon removal firm spins out of UCLA contracted with Boeing

Equatic has a pre-purchase agreement with Boeing for its carbon-negative hydrogen and currently operates two carbon removal pilots in Los Angeles and Singapore.

Carbon removal company Equatic recently spun out from the UCLA Samueli School of Engineering’s Institute for Carbon Management to deploy the first technology combining CO2 removal and carbon-negative hydrogen generation, according to a news release.

Alongside the launch, Equatic is announcing that it has entered into a pre-purchase option agreement with Boeing, a leading global aerospace company. Under the agreement, Equatic will remove 62,000 metric tons of carbon dioxide and will deliver 2,100 metric tons of carbon-negative hydrogen to Boeing.

“The oceans are the world’s largest reservoir of carbon dioxide. One quarter of the world’s daily CO2 emissions are drawn down into the ocean,” the release states. “Equatic’s technology accelerates and amplifies this natural cycle to remove and durably store CO2. The entire removal and sequestration process happens within the boundaries of an industrial carbon removal plant, enabling Equatic to precisely measure CO2.”

Equatic currently operates two carbon removal pilots in Los Angeles and Singapore. One hundred percent of the CO2 removed from these pilots has been pre-sold, including via pre-purchase agreements with global payment solution provider, Stripe.

Equatic expects to reach 100,000 metric tons of carbon removal per year by 2026 and millions of metric tons of carbon removal for less than $100 per metric ton by 2028.

“Furthermore, Equatic will become a dominant producer of carbon-negative hydrogen — hydrogen created from processes that reduce atmospheric CO2,” the release states. “The hydrogen will be sold as a clean energy source to decarbonize industrial processes, produce electricity for the transportation sector, create Sustainable Aviation Fuels (SAFs) and fuels for trucking, and power the Equatic technology itself.”

Equatic emerges from UCLA with over $30m in initial funding including grants and equity investments from organizations such as the Chan Zuckerberg Initiative, the Anthony and Jeanne Pritzker Family Foundation, the Grantham Foundation for the Protection of the Environment, the National Science Foundation, YouWeb Incubator, The Nicholas Endowment, Singapore’s Temasek Foundation, PUB: Singapore’s National Water Agency, and the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management, and the U.S. Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E).

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Emissions reduction technology firm receives $10m strategic investment

A developer of technologies to reduce carbon and methane emissions in natural gas production and utilization has raised $10m from publicly listed RNG company Clean Energy Fuels. The company’s plasma technology produces hydrogen and graphene from natural gas, without any CO2 emissions.

Rimere, a climate solutions company with proprietary plasma technology, announced the closing of a $10m strategic investment from Clean Energy Fuels Corp, according to a news release.

The funding will accelerate development and field testing of Rimere’s two independent devices, the Reformer and the Mitigator, that reduce climate change emissions and enable the use of natural gas to accelerate the transition to a clean hydrogen future.

The Reformer uses proprietary sequential hybrid plasma technology to transform natural gas into clean hydrogen and high-quality graphene, without creating any CO2 emissions. When renewable natural gas (RNG) is used as the feedstock, hydrogen produced by Rimere’s Reformer can achieve a negative carbon-intensity rating, making it substantially lower-emission than even renewable electrolysis.

The Mitigator is a plasma thermal oxidizer that reduces the greenhouse gas (GHG) potency of fugitive methane emissions. It offers a low-cost solution for abating methane emissions that escape from the natural gas infrastructure, particularly compressors and pneumatic controllers located along natural gas pipelines.

“The world continues to consume more natural gas annually for everything from producing electricity to heating our homes. However, this globally abundant, low-carbon and affordable resource can also pose greenhouse gas emissions challenges from pipeline transmission, storage and other operations. Importantly, Rimere’s technology not only cleans up the infrastructure but also repositions and revalues natural gas reserves as a vital solution for climate change and our clean energy future by producing both zero-emission hydrogen and valuable graphene. This investment by Clean Energy enables us to accelerate development of these proprietary technologies that could have an immediate impact on the world’s effort to address climate change,” said Mitchell Pratt, CEO of Rimere.

Rimere’s patented and patent-pending technologies deconstruct methane (CH4) at a molecular level, first exciting it to an ionized state, and then high voltage and high frequency arcs are used to crack the ionized gas under an induced electromagnetic field. Rimere’s Reformer and Mitigator provide important solutions to change the long-term outlook for natural gas leveraging a cleaner extensive infrastructure to deliver clean hydrogen and graphene to end use customers.

“Clean Energy has always been striving to address environmental issues since it was founded over 26 years ago. First, it was to reduce harmful and unhealthy pollutants caused by large vehicles operating on diesel. More recently, we saw the opportunity of turning fugitive greenhouse gas emissions at agricultural facilities into an ultra-clean transportation fuel. It is a logical next step to make this investment in Rimere which is tackling the challenges facing the natural gas and hydrogen industries to produce cost-effective solutions without emissions,” said Andrew J. Littlefair, president and CEO of Clean Energy.

Rimere is currently an equity method investee of Clean Energy and has raised $18.25m of committed capital to date since its formation in 2020.

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Equatic releases whitepaper on carbon dioxide removal

A fledgling company with a relationship with Boeing is marketing a process for seawater electrolysis to capture and store CO2 while producing hydrogen.

Carbon removal company Equatic has developed a process that relies on seawater electrolysis to capture and store CO2 while producing clean hydrogen, according to a news release.

A white paper written with consultation from EcoEngineers outlines Equatic’s approach to quantifying and verifying the carbon removal process.

Equatic operates two pilots in Los Angeles and Singapore. The company sells carbon removal credits and recently announced a pre-purchase option agreement with Boeing.

Under that agreement, Equatic will remove 62,000 metric tons of carbon dioxide and will deliver 2,100 metric tons of carbon-negative hydrogen to Boeing.

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Exclusive: Additional details revealed on e-fuels equity raise

A US e-fuels developer is in the midst of a Series C raise with BofA Securities advising.

E-fuels developer Infinium is raising $300m in a Series C capital raise that launched last year, according to a source familiar with the matter.

BofA Securities has been engaged to advise on the process, as previously reported by ReSource. The amount of the capital raise was not previously reported.

Infinium and BofA did not respond to requests for comment. 

Infinium recently announced the existence of Project Roadrunner, located in West Texas, which will convert an existing brownfield gas-to-liquids project into an e-fuels 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. The company is always scouting new projects and is looking for partners to provide CO2, develop power generation and offtake end products, an executive said previously.

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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Analysis: Premium for clean hydrogen unlikely

A group of hydrogen offtakers say they have every intention of decarbonizing their fuel intake, but barring the implementation of a carbon-pricing mechanism, paying a premium for it is unrealistic.

Passage of the Inflation Reduction Act ignited investor interest in the global market for clean hydrogen and derivatives like ammonia and methanol, but offtake demand would be better characterized as a flicker.

And while many questions about the nascent market for green hydrogen remain unanswered, one thing is clear: offtakers seem uninterested in paying a “green premium” for clean fuels.

That doesn’t mean offtakers aren’t interested in using clean fuels – quite the opposite. As many large industrial players worldwide consider decarbonization strategies, hydrogen and its derivatives must play a significant role.

Carbon pricing tools such as the Carbon Border Adjustment Mechanism in Europe could introduce a structural pricing premium for clean products. And industry participants have called for carbon levies to boost clean fuels, most recently Trafigura, which released a white paper today advocating for a carbon tax on fossil-based shipping fuels.

But the business case for clean fuels by itself presents an element of sales risk for potential offtakers, who would have to try to pass on higher costs to customers. Even so, there is an opportunity for offtakers to make additional sales and gain market share using decarbonization as a competitive advantage while seeking to share costs and risks along the value chain.

“It’s a very difficult sell internally to say we’re going to stop using natural gas and pay more for a different fuel,” said Jared Elvin, renewable energy lead at consumer goods company Kimberly-Clark. “That is a pickle.”

Needing clean fuels to reach net zero

Heavy-duty and long-haul transportation is viewed as a clear use case for clean fuels, but customers for those fuels are highly sensitive to price.

“We’re very demand focused, very customer focused,” said Ashish Bhakta, zero emission business development manager at Trillium, a company that owns the Love’s Travel Shop brand gas stations. “That leads us to be fuel-agnostic.”

Trillium is essentially an EPC for fueling stations with an O&M staff for maintenance, Bhakta said.

As many customers consider their own transitions to zero-emissions, they are thinking through EV as well as hydrogen, he said. Hydrogen is considered better for range, fueling speed and net-payload for mobility, all of which bodes well for the clean fuels industry.

One sticking point is price, he said. Shippers are highly sensitive to changes in fuel cost – and asking them to pay a premium doesn’t go far.

Alessandra Klockner, manager of decarbonization and energy solutions manager at Brazilian mining giant Vale, said her employer is seeking partnerships with manufacturers, particularly in steel, to decarbonize its component chain.

In May Vale and French direct reduced iron (DRI) producer GravitHy signed an MoU to jointly evaluate the construction of a DRI production plant using hydrogen as a feedstock in Fos-sur-Mer, France. The company also has steel decarbonization agreements in Saudi Arabia, the UAE and Oman.

In the near term, 60% of Vale’s carbon reductions will come from prioritizing natural gas, Klockner said. But to reach net zero, the company will need clean hydrogen.

“There’s not many options for this route, to reach net zero,” she said. “Clean hydrogen is pretty much the only solution that we see.”

Elvin, of Kimberly-Clark, noted that his company is developing its own three green hydrogen projects in the UK, meant to supply for local use at the source.

“We’re currently design-building our third hydrogen fueling facility for public transit,” he said. “We’re basically growing and learning and getting ready for this transition.”

The difficulty of a “green premium

The question of affordability persists in the clean fuels space.

“There are still significant cost barriers,” said Cihang Yuan, a senior program officer for the World Wildlife Fund, an NGO that has taken an active role in promoting clean fuels. “We need more demand-side support to really overcome that barrier and help users to switch to green hydrogen.”

Certain markets will have to act as incubators for the sector, and cross-collaboration from production to offtake can help bring prices down, according to Elvin. Upstream developers should try to collaborate early on with downstream users to “get the best bang for your buck” upstream, as has been happening thus far, he added.

Risk is prevalently implied in the space and must be shared equitably between developers, producers and offtakers, he said.

“We’ve all got to hold hands and move forward in this, because if one party is not willing to budge on any risk and not able to look at the mitigation options then they will fail,” he said. “We all have to share some sort of risk in these negotiations.”

The mining and steel industries have been discussing the concept of a green premium, Klockner said. Green premiums have actually been applied in some instances, but in very niche markets and small volumes.

“Who is going to absorb these extra costs?” she said. “Because we know that to decarbonize, we are going to have an extra cost.”

The final clients are not going to accept a green premium, she said. To overcome this, Vale plans to work alongside developers to move past the traditional buyer-and-seller model and into a co-investment strategy.

“We know those developers have a lot of challenges,” she said. “I think we need to exchange those challenges and build the business case together. That’s the only way that I see for us to overcome this cost issue.”

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NanoScent seeking new investor to complete blended funding round

NanoScent is seeking a new investor to satisfy the contingencies of a combined EUR 8m investment from existing investors and the European Innovation Council.

NanoScent, an Israel-based technology firm, is seeking a new investor to help solidify an equity investment from the European Innovation Council, CEO Oren Gavriely said in an interview.

To satisfy the contingencies of a combined EUR 8m investment from existing investors and the EIC, NanoScent must bring on a new investor at EUR 2m, Gavriely said.

The ideal investor will have complementary capabilities that can ramp up the revenue stream, Gavriely added. Producers and suppliers of gasses and chemicals for industrial use would make sense.

The money will be used to further develop the proprietary VOCID Purity in-line sensor controller, which measures hydrogen quality by monitoring the cleanliness of gas lines. The technology is oriented towards producers and end-users like fuel cell stations, who will be responsible for the integrity of the hydrogen. The product will be rolled out at the end of 1Q23.

Gavriely said the company has several customers for the technology in the pipeline, declining to say who they are.

NanoScent, founded five years ago, has raised USD 10m in equity to date, with another USD 10m in non-dilutive funding. The company’s largest outside investor is Sumitomo Chemical, which trades on the Tokyo Stock Exchange.

Control of the company is maintained by the founders, Gavriely said.

NanoScent has 20 employees, Gavriely said. So far the company has relied on the expertise of its board, which includes one former investment banker, for financial advisory services. That could change in the future as the company grows.

NanoScent uses Pearl Cohen for law services and EY for accounting.

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