Chevron-Backed Carbon Capture Company Secures Up to $100 Million from Canadian Fund
Canada’s New Green Technology Initiative Supports Svante Technologies Inc.
Friday, August 16, 2024
In a move to advance the commercialization of innovative carbon capture technology, Canada’s recently established green technology fund has committed up to $100 million to a Vancouver-area company, Svante Technologies Inc., which is supported by Chevron Corp.
Funding Details and Government Involvement
Svante Technologies, which specializes in carbon dioxide (CO2) capture, has secured $50 million through a convertible note from the Canada Growth Fund, with the potential for an additional $50 million for future initiatives. The Canada Growth Fund, a $15 billion CAD ($11 billion USD) program, was launched by the Canadian government in 2022 to encourage private sector investment and drive down emissions. The fund is managed by the Public Sector Pension Investment Board.
Svante Technologies: A Brief Background
Founded in 2007 and named after Swedish scientist Svante Arrhenius, who first linked atmospheric CO2 levels to global temperatures, Svante Technologies has developed specialized filters to extract and concentrate CO2 from the air. The company gained significant attention in December 2022 when it completed a $318 million Series E funding round, spearheaded by Chevron, which elevated Svante’s valuation to “unicorn” status, exceeding $1 billion.
Additional Investors and Strategic Partnerships
Svante has also attracted investments from Singapore’s state investor Temasek Holdings, as well as the venture arms of 3M Co. and United Airlines Holdings Inc. United Airlines is particularly interested in the potential application of captured CO2 in sustainable aviation fuel.
Purpose of the New Funding
The fresh capital injection from the Canada Growth Fund is intended to assist Svante in transitioning from experimental trials to large-scale, commercial carbon capture projects. These projects may also involve co-investment opportunities for the company.
CEO's Statement on the Funding
Svante’s Chief Executive Officer, Claude Letourneau, emphasized the significance of this funding in an interview, stating, “The support from the Canada Growth Fund will enable us to develop and construct our first-of-a-kind commercial carbon capture projects.”
How Svante's Technology Works
Target Industries
Svante’s technology is designed to capture CO2 emissions from carbon-intensive industries such as oil and gas, steel, and cement production. The company is also collaborating with Climeworks, a Swiss firm, to develop direct-air capture machines aimed at removing excess CO2 directly from the atmosphere.
The Capture Process
Svante’s innovative process involves coating sheets with a proprietary chemical formula, which are then baked and stacked into thin, gill-like layers. These layers are installed in large rotary drums, some as big as a house, where they filter carbon-heavy air.
Technical Details
The dried chemical paste forms a precisely engineered crystal structure with minuscule, fishnet-like gaps. These gaps are designed to capture CO2 molecules while allowing the rest of the air to pass through.
Future Developments and Commercialization
Svante is currently constructing a new facility in Burnaby, British Columbia, which will focus on large-scale, automated production of their technology. The facility will also include smaller versions of their systems for research and development purposes, allowing for continuous design improvements.
Comments from the Canada Growth Fund
Patrick Charbonneau, CEO of the Canada Growth Fund, commented on the collaboration, stating, “Svante has the potential to work with the Canada Growth Fund on a variety of solutions as needed over time. We are focused on accelerating the transition from promising technology at the pilot stage to full commercialization.”
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