Americas > Californian CO2-converting company raises $125 mln in new funding

Californian CO2-converting company raises $125 mln in new funding

Published 16:21 on August 3, 2023  /  Last updated at 16:21 on August 3, 2023  /  Americas, US, Voluntary

A California-based company that uses microorganisms to transform greenhouse gases into sustainable materials that can be used in everyday products has raised $125 million from investors.

A California-based company that uses microorganisms to transform greenhouse gases into sustainable materials that can be used in everyday products has raised $125 million from investors.

Newlight Technologies secured the cash in an equity round led by GenZero – an investment company owned by Singapore’s Temasek.

Oxy Low Carbon Ventures (OLCV), Charter Next Generation (CNG), and other firms also participated, Newlight said in a press release Thursday.

Building upon these partnerships, Newlight has entered agreements with CNG to market specialty decarbonised films and with OLCV to employ direct air capture (DAC) systems for generating CO2 feedstock.

Newlight uses CO2 to make a high-performance material called AirCarbon – a biomaterial produced by natural microorganisms native to California.

This process produces PHB (polyhydroxybutyrate), a vital molecule in numerous life forms. The purified form of PHB can substitute for many materials, with AirCarbon composed of roughly 40% oxygen and 60% CO2.

Newlight’s AirCarbon-infused products have been delivered to over 5,000 locations worldwide, covering industries including fashion, entertainment, and automotive.

“Today, AirCarbon is being used to develop and manufacture products across a range of industries, with a goal of turning everyday products into a consumer-driven force for carbon reduction,” the company added.

The fresh capital will facilitate Newlight’s plans to upscale production of AirCarbon at both its existing California facility as well as a new AirCarbon production facility being built in Ohio.

“This capital round represents an inflection point for Newlight, where we have the opportunity to build on 20 years of research, development, and commercialization, and expand biological decarbonization at large scale,” said Mark Herrema, CEO of Newlight.

“It is an important milestone for Newlight, and we are tremendously excited about the path ahead.”

Derek Willis, vice president at Oxy Low Carbon Ventures, added: “[DAC] provides a unique opportunity to supply CO2 as a raw material to create low carbon products. We look forward to supporting Newlight as they work to unlock new value from CO2 while addressing climate change.”

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