Suncor Energy Inc., one of Canada’s largest oilsands independents, has agreed to join a group of oil and gas heavyweights to back Svante Inc. as it works to accelerate commercializing more carbon capture technologies.
The latest $25 million infusion is designed to fund technology to reduce greenhouse gas (GHG) emissions in industrial applications and to advance hydrogen manufacturing.
Calgary-based Suncor, Carbon Direct SPV I LLC and a group of family office investors were involved in the latest investment. Family office investors are private wealth management advisory firms.
“Carbon capture is a strategic technology area for Suncor to reduce GHG emissions in our base business and produce blue hydrogen as an energy product,” CEO Mark Little said. “An investment in Svante is expected to support the acceleration of commercial scale deployment of a technology that has the potential to dramatically reduce the cost associated with carbon capture.”
Combined, the total proceeds raised under Svante’s Series D financing recently was at $100 million, “the largest single private investment into point source carbon capture technology globally to date,” Svante and Suncor said.
Since it was founded in 2007, Svante has attracted more than $175 million to develop and commercialize solid sorbent technology to capture carbon dioxide (CO2) emissions at what could be about half of the capital cost for traditional engineered solutions.
“Svante has generated a pipeline of potential new project opportunities,” said Svante CEO Claude Letourneau. The projects could capture more than 40 million metric tons/year of CO2 “before 2030.”
Svante is looking at projects for natural gas industrial boilers, cement and lime, and blue hydrogen industrial facilities. Blue hydrogen is manufactured using natural gas, with the emissions captured and sequestered.
Svante’s investments mainly target North American facilities, “spurred by both U.S. and Canada federal CO2 tax credits and prices on CO2 emissions,” management said.
“The net-zero pledges of major countries and large corporations is also a key driver for the interest and rapid growth of the carbon capture and storage new industry,” Letourneau said. “We strive to create world-changing solutions that address climate change and accelerate the global transition to carbon neutrality, reversing human impact on the climate and building a commercially viable CO2 marketplace.”
Chart Industries Inc. in February invested $15 million in Svante’s Series D offering. It also secured a binding commercial memorandum of understanding (MOU). The MOU defines how the partners may collaborate to develop an integrated carbon capture solution using Svante’s rapid adsorption technology and Chart’s cryogenic carbon capture technology.
The partners are looking to manufacture high-purity CO2 products from industrial flue gas streams.
Investors in Vancouver, British Columbia-based Svante also include Chevron Corp.’s Chevron Technology Ventures, Oil and Gas Climate Initiative and Temasek Holdings Ltd. Last year Svante also was working with Occidental Petroleum Corp., Total SE and LafargeHolcim regarding the viability of capturing and storing carbon emissions at a cement plant in Colorado.
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