Skyven Technologies, a developer of emissions-free industrial steam solutions, has partnered with renewable thermal energy financier Kyotherm in a $70 million co-development and project finance agreement aimed at accelerating the deployment of high-temperature heat pump technology across industrial facilities in the United States.
The partnership will support the rollout of Skyven’s Arcturus steam-generating heat pump, which is designed to reduce emissions in industries where decarbonisation remains challenging. The financing follows Skyven’s recent $145 million award from the US Department of Energy’s (DOE) Office of Clean Energy Demonstrations (OCED), which is funding projects aimed at advancing cleaner industrial processes.
Under the agreement, project funding will be structured through a combination of project debt and equity, with Skyven Technologies retaining majority ownership and operational responsibility. The financing model integrates development capital for project design and planning as well as construction capital to fund on-site deployment of Arcturus.
The funding model aims to facilitate Energy-as-a-Service (EaaS) projects, enabling industrial facilities to adopt steam-generating heat pump technology without upfront capital investment.
Kyotherm CEO Arnaud Susplugas highlighted the importance of investing in scalable decarbonisation solutions for industrial applications. “We see significant potential in the deployment of high-temperature industrial heat pumps such as Arcturus. This partnership aligns with our commitment to financing scalable solutions that address the urgent challenge of industrial decarbonisation with an optimised cost of capital.”
The Skyven-Kyotherm partnership aims to support emissions reductions in hard-to-abate sectors, improve air quality in local communities, and contribute to the creation of skilled jobs in clean energy manufacturing and industrial operations.
This collaboration builds on an existing partnership between the two companies, which began in 2021 and has already resulted in the successful implementation of six industrial decarbonisation projects at California Dairies, Inc. (CDI). These projects have led to an annual reduction of over 7,000 metric tonnes of CO2 while allowing CDI to transition to lower-carbon operations without requiring direct capital investment.
The agreement represents a step forward in expanding the adoption of clean industrial heating technologies and supporting the broader transition to low-carbon manufacturing and energy efficiency solutions.
