C-Capture raises £3.5m in funding round led by BP, Drax and IP Group - Drax

C-Capture raises £3.5m in funding round led by BP, Drax and IP Group

C-Capture, the designer of world-leading chemical processes for carbon dioxide removal, has raised £3.5m in new equity funding in a round led by BP Ventures, Drax, and IP Group.

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The funding strongly underlines the credibility of C-Capture’s technology as the company positions itself to help mitigate climate change by providing systems that remove carbon dioxide emissions from power stations and cement, steel and aluminium facilities.

C-Capture is currently conducting a demonstration project at Drax Power Station in North Yorkshire, which will remove carbon dioxide from emissions produced by generating electricity from sustainable biomass. The project, which is the first of its kind in Europe, is highly significant because it has the capacity to produce negative emissions, whereby carbon dioxide is removed from the atmosphere and stored.

C-Capture will use the new funding to further develop the technology, support larger pilot projects in other industries, and increase marketing globally. Carbon capture and storage (CCS) is widely-regarded as an essential component of strategies to combat climate change – both by removing carbon dioxide from processes that use fossil fuels and producing negative carbon dioxide emissions from power generation that uses biomass. The UK government is committed to developing and deploying CCS technology to cut emissions.

Tristan Fischer, chairman of C-Capture, said:

“We’re delighted that Drax, IP Group and now BP have all seen that our unique technology has the potential to be applied at scale around the world as part of the global drive to tackle climate change. We’re all very excited about the pilot project with Drax, and also that this new funding will help to develop our technology for use across a range of industries. We are looking carefully at the broader market for our carbon capture technology, which includes not just power generation but also the production of cement, steel and aluminium, as well as biogas, across a range of territories including India and China.”

C-Capture’s technology uses new proprietary solvents to remove carbon dioxide, offering a safer and less expensive alternative to current technologies based on the use of amines. It provides a means to make the removal of carbon dioxide significantly more economic from a range of large- scale processes, such as power generation from coal, gas and biomass, and the production of cement, steel, and aluminium. C-Capture, based in Leeds, was formed in 2009 as a spin-out from Leeds University with funding from IP Group and has raised over £2.2m from the UK government and £1.7m from IP Group so far to develop its technology.

Will Gardiner, CEO of Drax Group, said:

“At Drax we are focused on enabling a zero-carbon, lower-cost energy future, and want to take advantage of the environmental and business opportunities created by a growing net zero carbon economy. The innovative technology C-Capture has developed and is piloting at Drax Power Station is putting the UK on the map when it comes to carbon capture and global efforts to tackle climate change. This investment gives us a long-term commercial agreement to work together with them.

“We’re confident that our bioenergy carbon capture and storage (BECCS) pilot project will be successful, and if we scale it up, it could enable Drax to become the world’s first negative emissions power station. This significant milestone means the power we produce would help to reduce the carbon dioxide accumulating in the atmosphere.”

David Eyton, BP’s group head of technology said:

“BP believes carbon capture, use and storage has a key role to play in reducing emissions, in line with global climate ambitions. C-Capture’s technology could reduce the cost of capturing carbon dioxide. Our investment in C-Capture supports our ambition to advance the energy transition, and we look forward to working with them to explore opportunities to trial their technology.”

Ben Murphy, Cleantech Investment Manager at IP Group plc, said:

“C-Capture provides new, world- leading technology for capturing carbon dioxide from large-scale emissions. It has great potential to address climate change by facilitating negative emissions. This funding round further shows IP Group’s ability to build world-changing companies on the back of cutting-edge science. BP and Drax are excellent partners to work with as C-Capture looks to take its technology to global markets.”

Notes to editors

The UK’s first carbon capture, usage and storage project could be operational from the mid 2020s under a government action plan – press release via link:

https://www.gov.uk/government/news/plan-to-enable-first-uk-carbon-capture-project-from-the-mid- 2020s-announced-at-world-first-summit

About C-Capture:

C-Capture designs world-leading chemical processes for carbon dioxide removal. It has patented a unique, solvent-based technology which offers a safe, low-cost way to remove carbon dioxide from emissions sources such as power stations, industrial plants and anaerobic digestion for positive environmental benefit. In May 2018 C-Capture announced a partnership with Drax Group to run a pilot of its technology at the North Yorkshire power station, which will see carbon dioxide captured from biomass used in power generation, and show how C-Capture’s technology can be used as part of a process to remove existing carbon dioxide from the atmosphere (BECCS). C-Capture is proud of the potential its technology offers to mitigate climate change as part of the growing market for environmentally-conscious power generation and industrial processes. The company was formed in 2009 as a spin-out from Leeds University, and is backed by IP Group, Drax and BP Ventures. IP Group was set up with a mission to evolve great ideas, mainly from partner universities, into world- changing businesses.

www.c-capture.co.uk

twitter.com/c_captureco2

For further information about C-Capture or interview requests, please contact:

John Elliott: 020 7324 0492 / 07894 709 826john.elliott@powerscourt-group.com

Jack Shelley: 020 7549 0743 / 07917 886576 / jack.shelley@powerscourt-group.com

About BP Ventures:

BP Ventures identifies and invests in private, high growth, potentially game-changing technology companies, accelerating cutting-edge innovations across the entire energy spectrum. Since 2006, BP Ventures has invested over $450m in technology companies across more than 40 entities with more than 200 co-investors.

BP Ventures focuses on connecting and growing new energy business, focused on our core upstream, downstream and alternative energy businesses. In addition, it makes strategic equity investments in advanced mobility, low carbon and digital. For more information visit www.bp.com/ventures

For further information about BP Ventures, please contact:

BP Group press office: +44 20 7496 4076, bppress@bp.com

Kekst CNC: +44 20 3219 8800, bpventures@kekstcnc.com

About Drax:

Drax Group’s ambition is to enable a zero carbon, lower cost energy future. Its 2,600-strong staff operate across three principal areas of activity – electricity generation, electricity sales to business customers and compressed wood pellet production.

Power generation:

Drax owns and operates a portfolio of flexible, low carbon and renewable electricity

generation assets across Britain. The assets include the UK’s largest power station, based at Selby, North Yorkshire, which supplies six percent of the country’s electricity needs.

Having converted two thirds of Drax Power Station to use sustainable biomass instead of coal it has become the UK’s biggest renewable power generator and the largest decarbonisation project in Europe.

Its pumped storage, hydro and energy from waste assets in Scotland include Cruachan Power Station – a flexible pumped storage facility within the hollowed-out mountain Ben Cruachan. It also owns and operates four gas power stations in England.

B2B supply:

Drax owns two B2B energy supply businesses:

  • Haven Power, based in Ipswich, supplies electricity and energy services to large Industrial and Commercial sector
  • Opus Energy, based in Oxford, Northampton and Cardiff, provides electricity, energy services and gas to small and medium sized (SME)

Pellet production:

Drax owns and operates three pellet mills in the US South which manufacture compressed wood pellets (biomass) produced from sustainably managed working forests. These pellet mills supply around 20% of the biomass used by Drax Power Station in North Yorkshire to generate flexible, renewable power for the UK’s homes and businesses.

For more information visit drax.com

For further information about Drax, please contact:

Jessica Gorton
Press Officer
jessica.gorton@drax.com
+44 (0) 7712 677 177

Matt Willey
Group Director of External Affairs
matt.willey@drax.com
+44 (0) 7711 376 087

About IP Group

IP Group is a leading intellectual property commercialisation company which focuses on evolving great ideas, mainly from its partner universities, into world-changing businesses. The Group has pioneered a unique approach to developing these ideas and the resulting businesses by providing access to business building expertise, capital (through its 100%-owned FCA-authorised subsidiaries IP Capital and Parkwalk Advisors), networks, recruitment and business support. IP Group has a strong track record of success and its portfolio comprises holdings in early-stage to mature businesses across life sciences and technology. IP Group is listed on the Main Market of the London Stock Exchange under the code IPO.