First-of-its-kind agreement brings distributed carbon capture to market with no upfront cost and guaranteed CO2 reductions for customers
CarbonQuest, a leading distributed carbon capture technology provider, and Daroga Power (“Daroga”), a leading developer of power projects in the U.S., today announced their first joint carbon capture-as-a-service financing project in North America, with a goal to offer such service to customers across a variety of sectors ranging from food and beverage operations, commercial and industrial facilities, and utility infrastructure. This initiative follows the 2023 partnership announcement, which aims to bring “Sustainable CO2” to North American commercial, industrial, utility, and other types of emitters. This project and future joint carbon capture-as-a-service projects will be owned and operated by C2Zero, a portfolio company of SER Capital Partners, in partnership with Daroga Power.
CarbonQuest and Daroga’s first financed project is at a beverage-industry plant in Washington state. Under this model, the plant enters into a multi-year agreement with Daroga to finance CarbonQuest’s distributed carbon capture system at no upfront cost for the design, installation, and operational maintenance of the carbon capture system. This structure provides lower cost, resilient, and sustainable CO2, ensuring a reliable supply of liquid CO2 for its operations. This agreement also guarantees a minimum amount of captured CO2 for the plant each year. CarbonQuest’s Carbon Management Software (CMS) tracks in real-time the amount of CO2 captured, liquified, and sold for utilization to provide assurance and transparency.
This first-of-its-kind financing agreement is a significant milestone for distributed carbon capture, as it provides flexibility to emitters that cannot pay for upfront carbon emission controls, while securing a steady income stream from CO2 utilization. CarbonQuest and Daroga Power are already building on this agreement with a robust pipeline of similarly financed projects.
“Customers in many sectors are under pressure to reduce emissions yet are concerned about paying for hardware-intensive projects with capital budgets,” said Shane Johnson, CEO of CarbonQuest. “Carbon capture-as-a-service relieves that worry while providing stable and guaranteed emission reductions over a set timeframe. Daroga Power is the right financial partner at the right time. They understand how to evaluate power generation and carbon capture investments and turn them into valuable investments that scale. We are looking forward to many more opportunities together.”
“Daroga Power has developed and financed numerous distributed power projects globally, and carbon capture-as-a-service is a natural extension of our existing capabilities,” said Ory Moussaieff, Co-Founder of Daroga Power. “With the adaptation of CarbonQuest’s modular distributed system, we are now able to transform an overlooked resource into a valuable asset, generating financial returns with positive environmental impact.”
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