Svante Completes US$100M Series D Financing

Transaction Details

Fort Capital Partners is pleased to announce that Svante Inc. has upsized it previously announced Series D equity financing from US$75M to US$100M.  The placement, which represents the largest private investment into point source carbon capture globally to date, was led by Temasek and includes strategic investors Chart Industries, Suncor Energy, Carbon Direct and Export Development Canada (EDC).  Existing investors OGCI Climate Investments, BDC Cleantech Practice, Chevron Technology Ventures, The Roda Group and Chrysalix Venture Capital also participated in the round, reflecting strong on-going support for the company, including its market strategy and recent progress.

Headquartered in Burnaby, British Columbia, Svante is a global leader in developing innovative processes and materials used to capture carbon dioxide (CO2) that is emitted in the production of important industrial operations such as cement manufacturing, blue hydrogen production and natural gas boilers. Collectively, the emissions of these hard-to-abate industrial operations represents approximately 10 gigatons per annum, or 20% of global CO2 emissions. Svante facilities will employ the Company’s solid sorbent technology to capture carbon directly from industrial post-combustion flue gases as a non-intrusive ‘’end-of-the-pipe’’ solution to produce pipeline-grade CO2 for safe transportation and storage.

“Lowering the capital cost of the capture of the CO2 emitted in industrial production is critical to the world’s net-zero carbon goals required to stabilize the climate. Leaders from industry, financial sectors and government agree on the enormity of the challenge and the critical need to deploy carbon capture and carbon removal solutions at gigatons scale. The carbon pulled from earth as fossil fuel needs to go back into the earth in safe CO2 storage,” said Claude Letourneau, President & CEO of Svante Inc. “The success of our financing is further evidence that Svante’s innovative solution is well positioned to address these challenges in the near term. We are proud that Temasek and a group of new strategic investors have demonstrated their confidence in Svante to play a key role in building a commercially viable CO2 marketplace.’’

Jill Evanko, President & CEO of Chart, commented, “We believe the combination of Chart, SES [Sustainable Energy Solutions, a company recently acquired by Chart] and Svante will further advance lower global emissions within the current economics of carbon markets, as well as driving further advancements in the market.” Jonathan Goldberg, founder and CEO of Carbon Direct added, “Svante exhibits both technology leadership and a capital-light business model. Taken together, we believe the Company is optimally positioned to scale point source capture globally.”

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. An investment in Svante is expected to support the acceleration of commercial scale deployment of a technology that has the potential to dramatically reduce the cost associated with carbon capture. We are excited to become both an investor in and a collaborative partner with the company.”

Fort Capital Partners and Full Circle Capital are acting as financial advisors to Svante on the placement of Series D Preferred Shares, with Blake, Cassels & Graydon LLP providing legal counsel to the Company.

ABOUT SVANTE

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 to be used 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. Svante’s Board of Directors includes Nobel Laureate and former Secretary of Energy, Steven Chu and CEO of OGCI Climate Investments Pratima Rangarajan. To learn more about Svante, please visit www.svanteinc.com.

ABOUT TEMASEK

Temasek is an investment company with a net portfolio value of S$306 billion (US$214 billion) as at 31 March 2020. Temasek’s investment philosophy is anchored around four key themes: Transforming Economies; Growing Middle Income Populations; Deepening Comparative Advantages; and Emerging Champions. It actively seeks sustainable solutions to address present and future challenges, as it seeks to capture investment and other opportunities that help to bring about a better, smarter and more sustainable world. Headquartered in Singapore, Temasek has 11 offices around the world. For more information on Temasek, please visit www.temasek.com.sg.

ABOUT CHART INDUSTRIES

Chart Industries, Inc. is a leading independent global manufacturer of highly engineered equipment servicing multiple applications in the Energy and Industrial Gas markets. Chart’s unique product portfolio is used in every phase of the liquid gas supply chain, including upfront engineering, service and repair. At the forefront of the clean energy transition, Chart is a leading provider of technology, equipment and services related to LNG, hydrogen, biogas and CO2 capture amongst other applications. To learn more, please visit www.chartindustries.com.

ABOUT CARBON DIRECT

Carbon Direct provides both scientific advisory services and investment capital to the carbon removal & utilization ecosystem. Carbon Direct’s advisory business works for clients to fulfill their carbon removal & utilization commitments. Carbon Direct’s team of world-renowned carbon scientists has a nuanced understanding of the true risks and opportunities of emerging and mature carbon removal & utilization technologies. The firm’s investment business makes direct investments into leading carbon removal & utilization companies. Carbon Direct was founded in 2019 by Jonathan Goldberg and has offices in New York City.  To learn more, please visit www.carbon-direct.com.