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.