Utility Global Secures $53 Million Investment for Growth
Utility Global Raises $53 Million to Propel Innovation
Houston-based Utility Global has recently announced a significant milestone, successfully securing $53 million in ongoing Series C financing. This investment is spearheaded by the OPG Pension Plan in collaboration with ArcelorMittal S.A. (NYSE: MT), a multinational steel powerhouse, through the dedicated XCarb® Innovation Fund. Complemented by support from established investors Ara Partners and Aramco Ventures, this round marks an important phase in the growth journey of Utility Global.
Strategic Collaborations Fueling Growth
As part of this investment, Utility Global will be establishing a Collaboration Agreement with ArcelorMittal, targeting the development of a commercial facility at one or more of ArcelorMittal’s integrated steel plants. This partnership not only highlights the confidence ArcelorMittal has in Utility Global's pioneering technology but also emphasizes a shared commitment to reducing carbon emissions in hard-to-abate industries. The injection of capital aims to expedite both commercialization and market entry strategies for their patented eXERO™ gas production technology.
Transforming the Future of Clean Hydrogen Production
Utility Global’s revolutionary eXERO technology is designed to convert industrial process gases into clean hydrogen and concentrated CO2, all in a cost-efficient manner. With the successful results from their demonstration program at a commercial steel facility, where hydrogen was produced from blast furnace off-gases, the company is poised to enhance its commercial deployment tactics moving forward. The primary focus of this financing will be geared towards the final design and productization of these technologies, aiming for the release of the first commercial units by 2026 under the brand H2Gen™.
The Push for Decarbonization in Industry
Claus Nussgruber, the CEO of Utility Global, expressed optimism about the growing support from high-caliber investors who share a vision of delivering cost-effective decarbonization solutions. He stated, "Our eXERO solution stands out as it converts process gases into clean hydrogen onsite, extending the lifespan of existing processes while significantly reducing greenhouse gas emissions. This technological breakthrough is a game changer for industries looking to decarbonize expediently."
Funding Focused on Environmental Innovation
The funds will allow Utility Global to build upon their success, enabling the commercialization of their technology aimed at tackling the urgent need for greenhouse gas reduction. With ArcelorMittal’s XCarb® Innovation Fund continuously searching for investments in forward-thinking technologies, this collaboration illustrates a commitment to establishing a carbon-neutral steelmaking process. The fund's investments span various innovative technologies including renewable energy, carbon capture, and green hydrogen production.
Commitment to Collaborative Advancement
As part of the agreement, site identification for the new commercial facility will be announced in the future, reflecting a strategic approach to scaling up operations. Irina Gorbounova, at the helm of the XCarb® Innovation Fund, suggested that decarbonization technologies must be both cost-effective and scalable to truly influence hard-to-abate sectors like steel.
A Focus on Future Opportunities
Ara Partners maintains its status as a majority investor in Utility Global, continuing its mission to facilitate the decarbonization of industries through innovative investments. With a robust portfolio of approximately 30 companies and a financial track record of raising over $6 billion since 2017, Ara Partners is dedicated to supporting Utility Global's growth trajectory. Notably, early investors also include Saint-Gobain, showcasing the growing interest in sustainable technology solutions.
Empowering a Decarbonized Industrial Landscape
Utility Global is on a mission to transform the landscape of industrial carbon production through its innovative eXERO gas production technology. This innovative reactor processes variable industrial gases into high-purity hydrogen without electricity, paving the way for a new era of cleaner industrial processes. The hydrogen produced can potentially replace coke in steel production, thereby reducing costs associated with carbon capture and reinforcing the economic feasibility of green technologies.
Frequently Asked Questions
What is the purpose of the recent $53 million investment?
The investment aims to accelerate the commercialization and deployment of Utility Global’s eXERO technology, which is designed for reducing emissions in several industries.
Who are the key investors in this financing round?
The key investors include the OPG Pension Plan, ArcelorMittal through its XCarb® Innovation Fund, Ara Partners, and Aramco Ventures.
How does Utility Global's eXERO technology work?
The eXERO technology converts industrial process gases into clean hydrogen and concentrated CO2 without the use of electricity, providing a cost-effective solution for decarbonization.
What industries can benefit from Utility Global's technology?
Industries such as steel manufacturing, energy production, chemicals, and biogas-to-hydrogen mobility can benefit significantly from the eXERO technology.
When does Utility Global plan to deploy its first commercial units?
Utility Global aims to deploy its first commercial units under the H2Gen™ product line by 2026.
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