Utility Global, a Houston-based clean fuel startup, has raised $53 million in a Series C growth equity funding round to support the commercialization of its innovative technology aimed at decarbonizing hard-to-abate industries, such as steel, without the need for electricity. Founded in 2018, the company has developed a proprietary eXERO gas production technology that processes industrial waste gases into clean fuels, specifically hydrogen, by converting and concentrating hydrogen and syngas from off-gases. This technology eliminates the need for electricity, addressing a key challenge in clean tech, which is the competition for renewable energy resources. The new capital will enable Utility Global to accelerate its go-to-market strategies and finalize the design and productization of the eXERO technology. The company plans to deploy its first commercial units by 2026, following the successful completion of a demonstration program at a steel facility. The program marked a major milestone as it produced the first hydrogen from blast furnace off-gases in a single reactor. Utility Global’s CEO, Claus Nussgruber, emphasized the importance of providing cost-effective, onsite decarbonization solutions for industries seeking significant reductions in greenhouse gas emissions.
He highlighted that the eXERO platform extends the life of existing industrial assets while cutting emissions, making it an attractive proposition for both customers and investors. The Series C funding round was led by the OPG Pension Plan, with participation from multinational steel company ArcelorMittal via its XCarb Innovation Fund, alongside existing investors Ara Partners and Aramco Ventures. ArcelorMittal and Utility Global have also announced a collaboration to develop a commercial facility at one or more of ArcelorMittal’s steel plants, a move that signals a significant partnership in the decarbonization of the steel industry. Irina Gorbunova, head of innovation fund ArcelorMittal XCarb, said that for industries like steel, carbon reduction technology needs to be affordable and scalable. He added that Utility Global’s eXERO platform meets both criteria, making it a strong investment for the steel giant’s innovation portfolio. With this new investment, Utility Global can play an important role in decongesting the heavy industry and reducing carbon emissions through clean hydrogen technology.