- Suncor Energy (SU) invests in carbon capture technology company Svante
- Combined, Suncor and several family office investors have invested US$25 million of equity financing
- This will complete the largest single private investment into point source carbon capture technology globally to date
- Svante makes industrial-scale carbon capture a reality
- Suncor Energy (SU) is up 1.62 per cent, trading at C$27.62 at 1:16 pm ET
Suncor (SU) and Svante have entered into an equity financing agreement.
Suncor’s investment provides Svante with the additional growth capital to accelerate the commercialization of Svante’s novel second-generation CO2 capture technology.
Combined, Suncor and several family office investors have invested US$25 million of equity financing, bringing the total proceeds raised under Svante’s Series D financing to US$100 million, up from $75 million as announced on February 2nd, 2021.
This will complete the largest single private investment into point source carbon capture technology globally to date.
This final closing of the Series D financing includes Canadian energy company Suncor Energy and Carbon Direct SPV I LLC.
Svante has now attracted more than US$175 million in total funding since it was founded in 2007 to develop and commercialize its breakthrough solid sorbent technology at half the capital cost of traditional engineered solutions.
“Svante has generated a pipeline of potential new project opportunities capturing over 40 million tonnes of CO2 per year before 2030 from natural gas industrial boilers, cement and lime, and blue hydrogen industrial facilities, mainly in North America,” said Claude Letourneau, President & CEO of Svante Inc.
According to Mark Little, President & CEO of Suncor, “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.”
” We are excited to become both an investor and a collaborative partner with the company,” added Little.
“We are pleased to partner with a leading Canadian player in the energy industry, along-side existing investor Cenovus, and to benefit not only from their financial support but also their commitment to delivering low-carbon fuels and blue hydrogen to transform the energy system,” concluded Claude Letourneau.
Supporting Svante with the transaction were financial advisors Fort Capital Partners and Full Circle Capital and legal counsel Blake, Cassels & Graydon LLP.
Svante offers companies in emissions-intensive industries a commercially viable way to capture large-scale CO2 emissions from existing infrastructure, either for safe storage or for further industrial use in a closed-loop.
With the ability to capture CO2 directly from industrial sources at less than half the capital cost of existing solutions, Svante makes industrial-scale carbon capture a reality.
Suncor Energy (SU) is up 1.62 per cent and is trading at C$27.62 at 1:16 pm ET.
