Carbon capture technology firm CarbonQuest announced that it has raised $20 million in a funding round, with proceeds aimed at advancing and expanding its low-cost solution to capture CO2 from buildings and power generation systems.

Founded in 2019, Spokane, Wa-based CarbonQuest has developed a modular point-source system to capture CO2 before it is emitted from natural gas sources in buildings and industrial sites such as CHP systems, fuel cells, and boilers. The system converts the captured carbon into liquified CO2, which can then be transported to local businesses to use in production processes for products including building materials, jet fuel, or chemicals.

CarbonQuest said it has already deployed its system at six sites, and sees demand growing as its solution is smaller and more versatile than others. CarbonQuest’s deployments include several New York City residential buildings, capturing natural gas emissions from boiler systems, for use by a local off-taker for permanent sequestration in concrete blocks.

The company aims for its system to be the least expensive to use in terms of cost per ton of carbon removed. The company said that the new capital will help it address additional markets that rely on onsite power or re-use CO2 onsite.

Shane Johnson, CEO of CarbonQuest, said:

“This investment will accelerate our scaling efforts, allow us to hire more talent, and support the development of a diverse base of projects. We also value the expertise of our investors in the key sectors where we enable decarbonization.”

The round was led by Riverbend Energy Group, which initially invested in August 2024, adding funding from two institutional investors, including Energy Capital Ventures (ECV) and Aligned Climate Capital. The investors said they identified CarbonQuest as a key enabler of the energy transition and distributed carbon capture as an under-invested segment of the CCUS space.

Peter Davidson, CEO of Aligned Climate Capital, said:

“Commercial and industrial facilities across the country urgently need cost-effective carbon capture solutions. CarbonQuest’s proven technology is already serving these customers, and our investment will help the company scale further, faster.”

Joe Passanante, Managing Director at Riverbend, added:

“We are excited to welcome Aligned Climate Capital and Energy Capital Ventures into the round. Together, we see an amazing future for CarbonQuest and its ability to accelerate growth.”