Utility Global, an off-gas-to-value company pioneering its proprietary eXERO gas production technology optimized for hard-to-abate industries, announced that it has raised $53 million of an ongoing Series C funding led by the OPG Pension Plan and joined by multinational steel company ArcelorMittal S.A. through its XCarb Innovation Fund, along with current investors Ara Partners and Aramco Ventures. This funding is part of Utility Global’s current growth equity funding round.
ArcelorMittal and Utility Global also entered into a Collaboration Agreement to develop a commercial facility at one or more of ArcelorMittal’s integrated steel plants. And these key strategic investments and commercialization steps further demonstrate the unique technological approach Utility Global is pursuing to decarbonize industries such as steel, biogas to hydrogen mobility, energy production, chemicals and refining, and other hard-to-abate sectors.
The proceeds from this fundinground will serve to further accelerate commercialization and go-to-market strategies for Utility Global’s proven, patented and tested eXERO technology. And with the successful 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, the company has shifted to commercial deployments.
These investments will specifically focus on final design and productization aimed at deploying first commercial units in 2026, under the company’s H2Gen product line. And Utility Global’s technology will transform steel, biogas to mobility, and other industries by introducing a new, cost-effective way of reducing greenhouse gas emissions while producing low-carbon intensity fuels and chemicals that benefit all involved.
ArcelorMittal’s XCarb Innovation Fund (launched in 2021) has been investing in companies developing breakthrough technologies that will accelerate the steel industry’s transition to carbon neutral steelmaking. And since its launch, the fund has committed investments in eight companies covering a range of decarbonization technologies – renewable energy, long duration energy storage, carbon capture and utilization, green hydrogen production, nuclear energy, molten oxide electrolysis and biochar production.
Ara Partners continues to be a majority investor in Utility Global. And Ara’s sole purpose is to decarbonize the industrial economy by bridging the gap between IP and real assets. Ara has invested in Utility Global in 2021 and continues to support the company’s growth trajectory as it prepares for commercial unit deployments. Plus, Ara has a portfolio of approximately 30 companies focused on decarbonization, having raised in excess of $6 billion since 2017. Along with recent investments from Ara Partners, OPG Pension Plan, ArcelorMittal XCarb Innovation Fund, and Aramco Ventures, early investors also include Saint-Gobain.
TPH&Co., the energy business of Perella Weinberg Partners, served as exclusive financial advisor to Utility Global.
KEY QUOTES:
“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.”
-Claus Nussgruber, chief executive officer of Utility Global
“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. It is a welcome addition to the broad portfolio of investments which reside in the Innovation Fund, and we look forward to working alongside Utility Global’s management team to support the commercialization of the technology as it matures.”
-Irina Gorbounova, Head of ArcelorMittal XCarb Innovation Fund
“We remain highly supportive of Utility Global and the management team. We are very pleased to add these two distinguished investors to the Utility Global brand and look forward to the commercial ramp with both companies.”
-Cory Steffek, partner at Ara and Utility Global board member
