London 28 February 2020 – Ikigai AXL (Ikigai) is pleased to announce that Carbon Clean Solutions Limited (CCSL), one of the cutting edge clean technology start-ups within its bankability accelerator, has recently closed a $16m funding round attracting three global investors: WAVE Equity Partners, Chevron Technology Ventures and Marubeni Corporation.
CCSL has a technology that absorbs CO2 via a patented chemical absorption solution, allowing CO2 recovery at a higher efficiency and lower cost than conventional recovered solvents. It currently has the world’s highest level of cost-competitiveness in commercialized CO2 recovery technologies.
Ikigai supported CCSL to define its offer to space constrained industrial customers in the context of regionalised CO2 re-utilisation solutions and introduced Japanese trading house, Marubeni Corporation as a strategic investor to play a key role in the deployment of CCSL’s technology in the UK and internationally. This round of fundraising will also help CCSL to boost the development of their containerised carbon capture solution to achieve CO2 capture cost of $30 (£23)/tonnes by 2021.
Affordable carbon capture technology has a critical role to play in the transition to a low-carbon energy future. It is one of a host of technologies that will be required to tackle climate change. Renewables alone will not be enough if the world is to reach net zero emissions targets whilst also meeting the energy needs of a fast-growing global population still largely reliant on fossil fuels.
Aniruddha Sharma, CEO of CCSL said “Ikigai has helped us to shape bankable projects and to create an immediate commercial pipeline in the UK; that in turn has made investors comfortable with our ambitious forecast cash flow. We’re now looking forward to drawing on Marubeni’s global connections and cross-sectoral industrial experience to advance our technology and deliver real impact, on gigatonne or 1 billion tonne CO2 abatement scale”.
Satoshi Kanomata, UK General Manager of Waste to Energy in Plant Division at Marubeni Europe also added that “Ikigai supported us to overcome the challenges of being a large industrial investor in innovative technologies. They helped us to identify the strategic synergies of low cost, low energy consuming, compact carbon capture and recycling with our diversified asset base and those of our global customers across chemicals, aggregates and cement, fertiliser, power, steel and waste treatment. They also supported us to understand how carbon is shifting from being regarded as a waste product to a valuable output for use in the food and beverage industries, in glass manufacturing and as a transport fuel, amongst others. We are now looking forward to supporting CCSL to rapidly upscale and deliver their unique technology to decarbonise industries in the UK and beyond”.
Helena Anderson, co-founder of Ikigai, pointed out that “Stranded asset risk is real and, as climate change accelerates, industry is waking up to the necessity of reaching carbon net zero as cost effectively as possible, in order to maintain profitability and competitiveness and to continue to attract investment into their operations. CCSL perfectly demonstrates why we founded Ikigai – to connect strategic investors, infrastructure owners, industrial customers and start-ups with proven but innovative technology, to create bankable, scalable, behind the meter solutions to deliver the energy transition. We are looking forward to continuing to support CCSL and its shareholders to develop and finance onsite carbon capture and localised re-utilisation and storage projects as part of Ikigai Energy’s financing platform for data-led, holistic onsite energy solutions”.
Ikigai AXL is the bankability accelerator within the Ikigai group, alongside Ikigai Capital (providing energy transition and decarbonisation strategic advisory services to investors and asset owners) and Ikigai Energy, a developer and funder of holistic energy solutions for large energy users. Ikigai bridges the gap between investors, suppliers and energy intensive industry to deliver the energy transition to carbon net zero.