Syzygy Plasmonics Raises $76 Million Series C Led by Carbon Direct Capital to Accelerate Delivery of Low-Carbon Hydrogen Technology
Syzygy has pioneered an all-electric reactor platform that uses light instead of heat to power a cleaner, safer world
HOUSTON, Nov. 16, 2022 /PRNewswire/ -- Syzygy Plasmonics, a deep-decarbonization company that is electrifying chemical manufacturing, today announced $76 million Series C financing led by Carbon Direct Capital with participation from Aramco Ventures, Chevron Technology Ventures, LOTTE CHEMICAL, and Toyota Ventures. Existing investors including EVOK Innovations, The Engine, Equinor Ventures, Goose Capital, Horizons Ventures, Pan American Energy, and Sumitomo Corporation of Americas also joined the round. Carbon Direct Capital will join the Syzygy board and serve as the Series C director.
"Our mission is to decarbonize chemical and fuel production."
The capital raised will fund further development and delivery of all-electric reactor systems that eliminate fossil-based combustion from chemical manufacturing and reduce the carbon intensity of hydrogen, methanol, and fuel. Rather than rely on thermal energy, Syzygy Plasmonics harnesses the power of light to energize chemical reactions. This approach is designed to reduce feedstock waste while producing fewer emissions when powered by renewable electricity. Select Series C participants have also entered into commercial agreements with Syzygy to support their decarbonization goals.
The International Energy Agency reported in its Global Hydrogen Review 2022 that producing 94 million metric tons of hydrogen in 2021 released 900 million metric tons of carbon dioxide. The IEA estimates that hydrogen production must double by 2030 for the world to stay on track for net zero emissions by 2050, with roughly 60% of that being from low-carbon production. Widely available low-carbon, low-cost hydrogen is necessary to increase its adoption and contribution to the achievement of climate goals.
Syzygy technology combines two major recent breakthroughs to reduce emissions in chemical manufacturing. The first was the invention of high-performance photocatalysts at Rice University by company co-founders and professors Naomi Halas and Peter Nordlander. The second was the engineering of a novel reactor that uses common low-cost materials like glass, aluminum, and LEDs instead of high-cost metal alloys. The result is a scalable, universal chemical reactor platform that is designed to utilize different feedstocks to drive multiple, fundamental chemical reactions. Several field trials have initiated with commercial units scheduled to ship in 2023.
"Our mission is to decarbonize chemical and fuel production," said Syzygy Plasmonics CEO and co-founder Trevor Best. "Syzygy's aim is to achieve 1 gigaton of carbon emissions reductions by 2040, and the Series C financing is a key milestone in building towards that goal. Closing this fundraising round with such strong support from financial and strategic investors and with commercial agreements in hand is a signal to the market. Forward-thinking companies have moved beyond setting decarbonization goals to executing on them. Syzygy is unique in that we are developing low-cost, low-carbon solutions to offer across multiple industries."
"Syzygy is hyper-focused on aligning energy, technology, and sustainability," said CTO and co-founder Suman Khatiwada. "The projects we are delivering are targeting zero-emissions hydrogen from green ammonia, low-emissions hydrogen from combustion-free steam methane reforming, and sustainable fuels made from carbon dioxide and methane. This technology is the future of chemical manufacturing."
Syzygy's universal reactor platform has attracted support from multiple international investors and partners with operations spanning the U.S., Asia, and Europe. Carbon Direct Capital, a growth equity firm focused on carbon management technology, led the funding round.
"We were very attracted to the multiple use cases for the Syzygy reactor and the lifetime-value of each Syzygy customer," said Jonathan Goldberg, Carbon Direct Capital's CEO. "Emissions from hydrogen production total more than 900 million metric tons of carbon dioxide per year. Syzygy's photocatalysis technology is a key solution to decarbonize hydrogen production as well as other critical industries."
Syzygy is home to world-class chemists and engineers focused on decarbonizing hard-to-abate chemical operations. The company employs more than eighty people and anticipates doubling its workforce over the next year as it expands its commercial offerings.
Previously, Syzygy raised more than $35 million and secured Department of Energy ARPA-E and National Science Foundation SBIR Program grants.
Goose Capital, Inc. is an investment firm comprised of former Fortune 500 executives, industry leaders, and serial entrepreneurs. Membership in Goose Capital is limited to executives who have founded or run major enterprises and who are willing to invest in and mentor early stage companies. Goose Capital primarily invests in early-stage companies with proprietary and disruptive technology, manageable capital needs, large addressable markets, the prospect for high margins and an exit strategy within a five-year time period. It typically invests in convertible debt and Series A preferred stock, although it reserves capital for follow-on investments in its portfolio companies.