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Carbon capture filter maker Svante Technologies Inc. will receive up to $100 million US (C$137.3 million) in investment from Canada Growth Fund Inc. (CGF) to support its projects in Canada and the U.S.
The first tranche of $50 million US will be used to accelerate and de-risk commercial projects that are underway, a release states. A second tranche of up to $50 million US would be tied to project-specific requirements for Svante’s capital needs for development and construction of projects with its co-developers.
“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,” Claude Letourneau, Svante’s president and CEO, said in the announcement.
The company is based in Vancouver.
Svante designs and manufactures carbon capture filters that absorb carbon emissions from a point source such as the flue stacks of gas-fired power plants. The carbon can then be extracted and stored or used for industrial applications.
CGF is a C$15-billion public fund that invests in companies addressing climate change.
Details of the Svante investment
The first tranche of the investment will be disbursed immediately, the release states, with proceeds going to commercial development and first-of-its-kind project funding. The second batch would go to development and construction of Canadian carbon capture projects. The commitment marks CGF’s first investment in British Columbia, it says.
Svante’s major project is construction of a 141,000-square-foot facility in Burnaby, B.C. which will serve as its headquarters and research and development hub. It will be able to produce, annually, filters that can capture 10 million tonnes of carbon dioxide per year.
“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,” Patrick Charbonneau, president and CEO of CGF Investment Management Inc., said in the release.
“Svante has a tremendous market opportunity, globally and here at home, and we look forward to supporting this company in its growth.”
About Svante
A major player in the carbon capture industry, Svante has been a recipient of hundreds of millions in funding and investment. One of the most notable rounds to date was US$318 million in a funding round led by Chevron New Energies in December 2022.
The carbon capture filters can absorb over 95 per cent of the greenhouse gas at the source, the company says, and does not leak byproducts.
Critical to its business is lowering the cost of carbon capture, which is an expensive technology to operate, Letourneau told Sustainable Biz Canada in 2023.
It signed a partnership with Schenectady, N.Y-based GE Gas Power to develop the use of solid sorbents to decarbonize gas-fired power plants, formed an agreement with 3M to develop direct air capture materials, and will be deploying its filters in Texas.
Despite its Canadian roots, Svante has also expressed discontent with the lack of Canadian funding for its industry.
Carbon capture equipment was not deemed eligible for an investment tax credit in the 2024 Canadian budget, which came as a surprise to Svante, Business in Vancouver reported. Letourneau said Svante was being enticed to move operations to other countries that would be more supportive, such as the U.S.
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