CarbonQuest Raises $20M To Expand Carbon Capture Tech

Washington state-based carbon capture technology company CarbonQuest has raised $20 million in a new funding round to grow its ground-breaking solution to capture CO₂ emissions from power generation systems and buildings. CarbonQuest, established in 2019, has created a point-source modular carbon capture system that stops carbon dioxide from being emitted into the atmosphere from natural gas sources in industry and buildings.

CarbonQuest's patented technology is used to trap CO₂ emissions as they exit sources such as combined heat and power (CHP) systems, fuel cells, and boilers. The trapped carbon is processed into liquefied CO₂ that can be shipped to area businesses for use in many different applications, such as in the manufacturing of building materials, jet fuel, and chemicals. This process not only mitigates emissions but also advances the circular economy by giving recycled carbon new functional purposes.

Six locations have already utilized the company's technology, including various New York City residential buildings, to capture emissions from natural gas boiler systems. The captured CO₂ is delivered to a nearby off-taker that permanently locks it into concrete blocks, supporting greener construction materials. This strategy is in line with increasing industry and regulatory initiatives to lower carbon footprints, especially in cities where heat system emissions pose a serious problem.

One of the biggest benefits of CarbonQuest's system is its portable, multi-functional, and economical design, an appealing alternative to larger and pricier carbon capture technologies. The firm states that its system has the lowest cost per ton of carbon captured, an advantage that makes it a prime selection for buildings and facilities requiring an economical, scalable solution for cutting emissions.

The newly secured capital will be used to expand CarbonQuest’s market reach, particularly in sectors that rely on onsite power generation or have the potential to reuse CO₂ directly at their facilities. CEO Shane Johnson highlighted the importance of this funding, stating that it will accelerate the company’s efforts to scale operations, hire new talent, and develop a more diverse portfolio of projects. He also highlighted the importance of the value brought by investors who see that CarbonQuest has a role in the energy transition.

The round was headed by Riverbend Energy Group, which invested for the first time in August 2024. The round also saw participation from Energy Capital Ventures (ECV) and Aligned Climate Capital, two institutional investors with a mission to drive clean energy solutions forward. Investors see CarbonQuest as a key player in the under-invested space of distributed carbon capture, an area that is picking up speed as industries look for cost-efficient means of cutting emissions without heavy infrastructure changes.

Peter Davidson, chief executive of Aligned Climate Capital, noted the imperative to bring practical carbon capture technology to commercial and industrial plants nationwide. He credited CarbonQuest with being able to do this, asserting that the company's established technology is already creating value for customers. Joe Passanante, Managing Director of Riverbend Energy Group, also indicated agreement, congratulating the additional investors and affirming the favorable growth prospects of CarbonQuest to continue expanding.

With increasing international focus on carbon capture, use, and storage (CCUS) as an essential path to net-zero emissions, CarbonQuest's scalable and cost-effective approach makes it a central facilitator of the energy transition. The new investment will enable the company to ramp up deployment, grow its customer base, and help drive the larger decarbonization agenda in various industries.