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Houston investor backs carbon capture startup's series A

CarbonQuest, a company with a compact carbon capture technology, announced it received series A funding from Houston-based Riverbend Energy Group. Photo via CarbonQuest

Houston investors are betting on a New York-based carbon capture startup's technology.

CarbonQuest announced it received series A funding from Houston-based Riverbend Energy Group. The terms of the deal were not disclosed. Founded in 2019, the company created its Distributed Carbon Capture technology that captures CO2 from buildings and onsite power generation systems, then liquifies and transports it to local businesses that need carbon for their production processes.

“We are one of the few carbon capture companies with commercial products on the market today, and this investment will enable us to continue bringing distributed carbon capture to a wider swath of the market,” Shane Johnson, president and CEO of CarbonQuest, says in a news release. “We are also excited to attract new talent and expand our North American operations.”

The company's compact, modular carbon capture solution has already been deployed in several New York City buildings and reports that it is focused on natural gas emissions from distributed onsite power generation in 2024. The fresh funding will help CarbonQuest lower its cost for customers and address new market segments, including biogenic sources of CO2, utility infrastructure, and more, per the release.

Additionally, the company plans to advance development of its Carbon Management Software, a platform that provides real-time data and analytics for users. Riverbend's Joe Passanante and Eric Danziger will join CarbonQuest’s board of directors as a part of the deal.

“We are thrilled to partner with CarbonQuest, a company at the forefront of distributed carbon capture technology,” Passanante, managing director at Riverbend, says in the release. “This investment reflects our commitment to advancing solutions that play a critical role in decarbonization.

"CarbonQuest’s innovative approach not only addresses that need, but also offers scalable, economically viable solutions that can be deployed across a wide range of markets," he continues. "We are excited to collaborate with CarbonQuest’s experienced and talented team and believe this partnership will be a game changer in multiple markets, helping to unlock the full potential of distributed carbon capture and significantly contribute to global climate goals.”

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A View From HETI

The high-performance permanent magnets are vital components in electric vehicles, industrial motors, generators, electronics and other advanced technologies. Photo courtesy UH

University of Houston researchers are leading an effort to find alternatives to a key element of the U.S. economy.

A UH-led coalition is exploring the use of AI to design and manufacture next-generation permanent magnets for the energy and industrial sectors. The project seeks to develop new, more sustainable magnets that reduce U.S. reliance on vulnerable foreign sources of critical minerals, primarily China.

A nearly $2.9 million grant from the U.S. Department of Energy supports the work.

“Rare earth elements, critical minerals, and magnets are indispensable to American energy, industry, and national security,” Conner Prochaska, director of the Advanced Research Projects Agency–Energy, said in a news release. “These projects will accelerate domestic mineral discovery and develop ultra-powerful magnets to mobilize U.S. critical mineral reserves, safeguard supply chains, and protect American energy and economic interests.”

Over the three-year grant period, principal investigator Jakoah Brgoch, a chemistry professor at UH, will head the Guided AI for Magnetic Boride/Carbide Intermetallic Technologies (GAMBIT) project. Brgosh was one of seven new senior members from UH named to the National Academy of Inventors earlier this year.

Other members of the team include Joshua Bocarsly, an assistant professor in the UH chemistry department; scientists at Rice University; and Houston-based startup Newfound Materials, which occupies space at Greentown Labs.

The UH-led team aims to surpass the properties of neodymium iron boron, the current industry-standard material for high-performance permanent magnets. These magnets are vital components in electric vehicles, industrial motors, generators, electronics and other advanced technologies.

“Strong magnets are used all over our economy. For example, many modern air-conditioning systems rely on permanent-magnet motors to drive compressors and blower fans,” Brgoch said.

“This has been a longstanding challenge to think about how we replace these magnets with high-performing and more reliable materials, and optimization by just replacing elements is not working,” Brgoch added. “Our goal is to use AI to find entirely new materials while simultaneously balancing these supply constraint concerns.”

The research team will work on discovering and testing potential magnet replacements. According to UH, the project’s ultimate goal is to commercialize the magnets through a new startup or by expanding Newfound Materials’ business units. The local startup has developed a predictive engine for materials research and development.

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