Parallel Carbon, an innovative company developing technology for simultaneous carbon capture and green hydrogen production, has closed a $3.6 million seed round at COP28 to further advance the building of its first-of-a-kind product.
The funding round was led by Aramco Ventures, the corporate venture capital fund of Saudi Aramco, the world’s largest energy company with a market cap of approximately $2.1Tn. The company has committed to eliminating fossil dependence of 10% of its generation capacity by 2030. The round was supported by Axon Partners Group and other funds specialising in CO2 elimination technologies, such as Counteract. This investment will further develop and strengthen Axon’s ClimateTech strategy.
This is the first investment made by the group in the United States as part of its ClimateTech strategy. The US market has great potential in this field due to its large innovative ecosystem and the boost provided by programmes to accelerate the development of projects around hydrogen production and carbon capture technologies. For instance, the Inflation Reduction Act has a budget of around $60Bn over the next 8 years for these verticals.
This round will enable the company to make further progress towards achieving the milestones outlined in its business plan. The ultimate goal is to commercialise the technology that integrates water electrolysis and direct carbon capture. Parallel Carbon’s electrochemical process runs on intermittent electricity and can be powered solely by renewable sources, providing critical advantages compared to other high-temperature direct air capture technologies.
The development of this infrastructure will bring in diversified revenue streams and climate benefits, while aligning with the global challenge of achieving zero net emissions. The projects will generate cash flows from the production of renewable hydrogen, significantly reducing emissions compared to current fossil-based alternatives. Additionally, CCD technology will be combined with permanent carbon storage underground or in concrete to generate high-quality carbon credits (CDRs). The projects produce carbon-negative hydrogen, effectively reducing the cost of achieving zero global emissions.
Ryan Anderson, the CEO and founder of Parallel Carbon, commented: `By integrating the low-cost production of zero-carbon hydrogen and air-captured carbon dioxide, we are building a critical tool to end the world’s dependence on fossil fuels and put carbon back in the ground, he says. He added that once deployed at scale, their technology will provide affordable carbon removal, reduce the cost of decarbonising grids, and become a scalable basis for producing sustainable fuels for shipping and aviation.
Luis Castañeda, Partner at Axon and Head of ClimateTech Strategy, said: `We are in the midst of a race to develop large-scale carbon capture technologies that are technically viable and economically competitive, while CCD technologies are becoming increasingly important in the roadmap to meet 2050 decarbonisation targets. Parallel Carbon is well positioned to become a world leader due to its innovative technology and the quality of its team, led by Ryan and Aranzazú. We are excited to join this syndicate of top-tier investors and support the company in this challenge. ´