July 12, 2022
CleanO2—a Calgary, Albert, Canada-based carbon capture startup—just raised $2.1 million from Leonardo DiCaprio-backed Regeneration.VC, based in Los Angeles, reports Business Insider.
The company has developed small-scale carbon capture systems, which are the size of refrigerators, that can be retrofitted onto existing heating appliances. The system converts CO2 into a compound which is used to make soap and is sold to consumers.
CleanO2 captures emissions direct from the source, reflecting a maturing carbon capture market previously dominated by the likes of Climeworks, another well-known carbon capture company, which operates a large industrial site and pumps captured carbon deep below ground.
The global carbon capture and storage industry attracted $2.3 billion from investors in 2021, according to BloombergNEF.
CleanO2 cofounder and CEO Jaeson Cardiff had the idea while he was working as a plumber, fixing blocked pipes and heating systems like boilers.
“In 2005 I recognized that the industry was moving towards decarbonizing,” he told Insider. Wondering what that meant for his future and the sector, he asked around and no one seemed to have a clear answer. “The more questions I asked, the more I realized that there may be an opportunity to create a solution.”
Cardiff played with ideas in his spare time, networking with experts who helped iterate the technology on a pro-bono basis. For years, Cardiff said, he spent half of his day wearing coveralls, fixing boilers and faucets. He would then put on a suit and head to a conference or investor meeting.
This process naturally releases energy, he said. This energy—as well as any waste heat from the connected boiler or water tank—is used to offset the energy needs of the building it serves. The best use case for this is heating water, Cardiff said, so boilers don’t have to work as hard to heat up cold water every time a tap or shower is turned on. “We get roughly 75% of our greenhouse gas reduction through heat recovery,” he added.
The pearl ash from the direct air capture is then collected from each site and turned into consumer goods such as soap, shampoos, cleaning products, and fertilizers.
The fresh funds will be used to scale up and further develop the technology and increase sales and marketing efforts.
The round was led by Regeneration.VC, a fund backed and advised by actor Leonardo DiCaprio. Dan Fishman, general partner at the firm, said there is strong investment appetite for carbon capture and sequestration strategies that deal with “fugitive carbon.”
The round brings the startup’s total raised to $3.4 million.
Research contact: @BusinessInsider