Clean fuel startup Utility Global announced that it has raised $53 million as part of a growth equity Series C funding round, with proceeds aimed at supporting the commercialization of its technology to process industrial gases into clean fuels to help decarbonize hard-to-abate industries, such as steel, without the use of electricity.
Founded in 2018, Houston, Texas-based Utility Global provides solutions aimed at supporting the decarbonization of hard-to-abate industries, based on its technology that converts and concentrates streams of hydrogen and syngas from industrial waste gases, providing a cleaner and more efficient alternative to other more carbon- and energy-intensive methods. The company’s proprietary eXERO gas production technology works with the inherent energy in off-gases – eliminating the need for electricity, addressing a key challenge for emerging cleantech solutions that are increasingly competing for renewable energy capatcity.
The company said that the new capital will be used to accelerate commercialization and go-to-market strategies for eXERO, and particularly the final design and productization aimed at deploying first commercial units in 2026, following the recent completion of its demonstration program at a commercial steel facility resulting in the first hydrogen ever produced from blast furnace off-gases in a single reactor.
Utility Global CEO Claus Nussgruber said:
“We have a growing number of high-caliber investors supporting our commercialization. Customers and investors are seeking cost-effective, onsite decarbonization solutions that provide material reductions in greenhouse gas emissions this decade. Our eXERO solution is the first of its kind to convert process gases into clean hydrogen in a single reactor, onsite, in a cost-effective manner that extends the life of existing customer assets and processes, while providing significant emissions reductions.”
The funding round was led by the OPG Pension Plan and joined by multinational steel company, ArcelorMittal through its XCarb Innovation Fund, alongside current investors Ara Partners and Aramco Ventures.
ArcelorMittal and Utility Global also announced a new collaboration agreement to develop a commercial facility at one or more of ArcelorMittal’s integrated steel plants.
Irina Gorbounova, Head of ArcelorMittal XCarb Innovation Fund said:
“For hard-to-abate sectors like steel, decarbonization technologies need to be cost-effective and scalable. Utility Global’s eXERO technology platform has the potential to be both, which is what makes it an attractive investment for our Innovation Fund.”