Carbon capture and removal technology provider Svante announced that it has raised $318 million, in a deal led by energy giant Chevron’s low-carbon solutions-focused business Chevron New Energies (CNE).
Founded in 2007, Burnaby, British Columbia-based Svante provides structured adsorbent beds – or filters – and modular rotary contactor machines that capture and remove CO2 from industrial emissions, aimed at enabling emissions intensive industries to capture large-scale emissions from existing infrastructure. The company’s solutions are targeted at industrial decarbonization activities in areas such as hydrogen, pulp and paper, lime, cement, steel, aluminum, and chemicals, and the technology can also be used for Direct Air Capture (DAC) solutions.
Claude Letourneau, President and CEO of Svante:
“We are working to remove the biggest barriers to rapid deployment of industrial carbon capture by building this manufacturing facility, which we expect will enable us to rapidly expand our order book.”
The company said that the financing will support its commercial-scale filter manufacturing facility in Vancouver, expected to produce enough filter modules to capture millions of tonnes of CO2 per year.
Chevron initially invested in Svante in 2014 through Chevron Technology Ventures, and the companies launched a pilot project in 2020 for the capture of CO2 from post combustion of natural gas.
Chevron launched CNE last year, announcing plans to significantly ramp investments its low carbon businesses to over $10 billion by 2028.
Chris Powers, vice president of CCUS with CNE, said:
“We are advancing a full value chain carbon capture, utilization, and storage (CCUS) business and believe Svante is poised to be a leader in enabling carbon capture solutions.”
The deal marks the latest major capital raise for carbon removal technologies, such as the $650 million equity financing earlier this year for DAC startup Climeworks.
Following the announcement of the financing, J.P. Morgan, who served as lead placement agent on the deal, and also on the Climeworks capital raise, noted that it has advised on private equity capital raises of nearly $1 billion for carbon capture companies this year, roughly double that of the prior five years combined.
J.P. Morgan Sustainability Executive Director Ben Ratner said:
“Putting increasing capital to work on carbon capture efforts is one important way to serve businesses in the low carbon transition, balancing the continued need for heavy industry with the climate imperative. As we pursue our $1 trillion green financing target, there are promising opportunities to leverage innovative technologies across the energy system.”