Canada’s new green technology fund is investing around $100 million in Svante Technologies Inc., a carbon-capture company supported by Chevron Corp., to help commercialise its innovative technology. Svante, based near Vancouver, has developed filters that capture carbon dioxide from the air and concentrate it for other uses.
The Canada Growth Fund, a C$15 billion ($11 billion) initiative launched by the government in 2022 to drive private sector investment and cut emissions, has committed $50 million through a convertible note, with the potential for an additional $50 million for future projects. The fund is managed by Canada’s Public Sector Pension Investment Board.
Found in 2007 and named after Swedish scientist Svante Arrhenius, who first modeled the link between atmospheric CO2 levels and Earth’s temperature, Svante raised $318 million in a Series E funding round led by Chevron in December 2022, achieving a “unicorn” valuation of over $1 billion according to Chief Executive Officer Claude Letourneau. The company has also attracted investment from Singapore’s state investor Temasek Holdings and the venture arms of 3M Co. and United Airlines Holdings Inc., with the latter interested in using captured CO2 for sustainable aviation fuel.
The new funding will enable Svante to transition from trials to large-scale carbon capture projects, in which it could also co-invest. CEO Claude Letourneau stated that the Canada Growth Fund’s investment will support the development and construction of these pioneering commercial projects.
He said, “We are delighted with this investment by CGF. It is transformational for Svante and complements the US$145 million capital investment made in our new carbon capture and removal filter manufacturing facility under construction in Vancouver. This will strengthen our Integrated Project Development Services offering to help our customers de-risk FOAK projects by providing both our in-house project development advisory expertise and financing. This new offering bridges the gap for our customers as it enables them to reach final investment decision.”
Svante’s technology focuses on extracting CO2 from the ducts of carbon-intensive industries like oil and gas, steel, and cement production. The company has also partnered with Swiss firm Climeworks on direct-air capture machines that remove excess CO2 directly from the atmosphere. Svante’s process involves coating and baking sheets with a proprietary chemical, stacking them into gill-like racks, and installing them in large rotary drums to filter carbon-heavy air. The dried chemical paste forms a crystal structure with tiny gaps designed to trap carbon dioxide while allowing other air components to pass through.
Svante is currently building a large-scale, automated production facility in Burnaby, British Columbia, which will also house smaller versions of its technology for ongoing research and development.
“CGF is working to accelerate the deployment of key Canadian carbon capture technologies, and to scale the manufacturing and export of promising solutions to showcase Canadian technologies internationally. Svante has a tremendous market opportunity, globally and here at home, and we look forward to supporting this company in its growth,” said Patrick Charbonneau, President and CEO of Canada Growth Fund Investment Management Inc. (“CGF Investment Management”).