C-Zero Inc., a clean energy company that has developed a technology for natural gas decarbonization, announced today that it has closed a $34 million dollar financing round led by SK Gas, a subsidiary of South Korea’s second-largest conglomerate, the SK Group.
SK Gas was joined by two other new investors – Engie New Ventures and Trafigura, one of the world’s largest physical commodities trading companies – in addition to participation from all existing investors including Breakthrough Energy Ventures, Eni Next, Mitsubishi Heavy Industries and AP Ventures.
The funding will be used to build C-Zero’s first pilot plant, which is expected to be online in Q1 2023. The plant will be capable of producing up to 400kg of hydrogen per day from natural gas with no CO2 emissions.
“We are excited to be scaling up our innovative technology with experienced investors and partners who recognize the need to decarbonize natural gas and the opportunity that turquoise hydrogen production represents,” said Eric McFarland, CTO of C-Zero. “Natural gas provides a quarter of the world’s energy, so the scale of the opportunity ahead of us is enormous. But we cannot do it alone.”
Brian (Byung Suk) Yoon, CEO of SK Gas, said, “We are eager to bring C-Zero’s technology to Korea, where we see great synergies with our plans to build a hydrogen value chain complex in Ulsan.”
Johann Boukhors, Managing Director of ENGIE New Ventures, said, “We see significant applications for low-carbon hydrogen production through methane pyrolysis which complement ENGIE’s existing activities and skill sets.”
Julien Rolland, Head of Power and Renewables for Trafigura, said, “C-Zero is reaching a critical stage with the construction of its first pilot plant to successfully demonstrate the production of low-carbon hydrogen from natural gas.”