Skyven Technologies (a leader in emissions-free industrial steam) and Kyotherm (a financier of renewable thermal energy projects) announced a $70 million co-development and project finance agreement. This partnership offers project funding for accelerating the deployment of Skyven’s steam-generating heat pump technology Arcturus aimed at decarbonizing hard-to-abate industries and facilities across the United States. This project finance is driven by Skyven’s recent $145 million award from the Department of Energy’s (DOE) Office of Clean Energy Demonstrations (OCED).
This co-development agreement combines project debt and equity under a milestone-based structure, with Skyven Technologies maintaining majority ownership, control, and operational responsibility for the decarbonization projects. And this seamlessly integrates all phases of funding required for Skyven’s Energy-as-a-Service (EaaS) projects, combining development capital for initial design and planning and construction capital to support the on-site buildout of the Arcturus steam-generating heat pump.
The Skyven and Kyotherm partnership also enables Arcturus projects to improve air quality in local communities by reducing emissions, creating good-paying jobs across America, and developing workforce training programs to enhance the competitiveness of industrial manufacturers.
This agreement also strengthens the existing, impactful relationship that Skyven and Kyotherm initiated in 2021, which led to the successful implementation of six decarbonization projects at California Dairies (CDI). And the projects have resulted in an annual reduction of over 7,000 MT of CO2 and required zero capital outlay from CDI.
KEY QUOTES:
“This capital helps fund our Energy-as-a-Service offering, allowing us to deploy Arcturus at industrial manufacturing facilities – saving them money and cutting their emissions with no capital expense required. We are excited to grow our longstanding relationship with Kyotherm, and continue to advance the transition to cleaner industrial processes, together.”
“Kyotherm is our one-stop shop for private capital on these upcoming projects, and we are thrilled to work together to allow our customers to achieve immediate and long-term results while mitigating risk and ensuring success.”
– Arun Gupta, Founder & CEO of Skyven
“We are proud to partner with Skyven Technologies again, and we see a lot of potential in the deployment of high temperature industrial heat pumps such as Arcturus. This relationship aligns with our commitment to finance with an optimized cost of capital scalable solutions that address the urgent challenge of industrial decarbonization.”
– Arnaud Susplugas, CEO of Kyotherm
