Cowboy Clean Fuels Announces Final Close of $13 Million Series B to Commercialize Technology
for Scalable, Simultaneous Production of Renewable Natural Gas and
Sequestration of Carbon Dioxide.
DENVER and GILLETTE,
Wyo., July 22, 2024 /PRNewswire/ -- Cowboy Clean
Fuels (CCF), an advanced climate tech and energy transition
company, is pleased to announce the successful closing of
approximately $13 million in Series B
equity financing. This funding will be pivotal in commercializing
its groundbreaking technology for the simultaneous production of
renewable natural gas (RNG) and permanent sequestration of carbon
dioxide, presenting a significant opportunity for investors in the
growing renewable energy and carbon markets.
Founded in 2020, CCF utilizes depleted Coal Bed Methane (CBM)
wells and infrastructure in Wyoming's Powder
River Basin to generate carbon-negative RNG from
agricultural byproducts. These byproducts are converted into CO2
and renewable methane through a biogenic process in deep, geologic
coal formations. The commercialization of this technology, termed
"Biomass with Carbon Removal and Storage, plus Renewable Natural
Gas (BiCRS+RNG)," represents a scalable, capital-efficient solution
in the renewable energy sector.
The Series B financing round was led by Houston-based Machan Investments, the family
office of former energy executive Dan
Dinges. Cowboy Clean Fuels was advised in the transaction by
Syren Capital. Combined with $7.8
million in Energy Matching Funds (EMF) from the Wyoming
Energy Authority (WEA), this capital will support the development
of CCF's first commercial project in Wyoming, the Triangle Unit Renewable Energy
and Carbon Capture and Storage (TRECCS) Project.
With approval for a Notice to Inject from the Wyoming Department
of Environmental Quality (WDEQ), the TRECCS Project began
commercial operations in early June. Since then, it has injected
15,000 barrels of mixed feedstock for microbial conversion to
methane and carbon dioxide. This marks a significant milestone as
CCF advances towards full commercialization.
Investment Potential in Renewable Natural Gas (RNG) and
Carbon Dioxide Removal (CDR) Markets
RNG is one of the fastest-growing renewable energy markets in
the United States, offering a
cost-effective decarbonization pathway for various industrial
processes. CCF's first project is expected to produce approximately
600 million cubic feet of pipeline-ready RNG annually at full
scale, providing a lucrative opportunity for investors. The carbon
dioxide removal market is also rapidly gaining traction, with
increasing recognition as crucial for achieving Net Zero goals.
CCF's technology, developed by co-founder Dr. Michael Urynowicz and licensed from the
University of Wyoming School of Energy
Resources, is ready for commercial deployment and can sequester
approximately 180,000 metric tons of CO2e per year at scale.
Strategic Advantages and Market Differentiation
CCF's technology addresses the saturation in the conventional
RNG market, dominated by anaerobic digesters at dairy farms, by
offering a more scalable, cost-effective, and faster-to-deploy
solution. The company's technology not only generates renewable
energy but also permanently sequesters carbon dioxide through a
physical adsorption process that remains stable under naturally
occurring hydrostatic pressure, ensuring long-term carbon
removal.
Key Investment Highlights:
- The approximately $20 million in
capital raised positions CCF to reach full scale by the end of
2025, potentially making it one of the largest global producers of
both RNG and CDR credits.
- The TRECCS Project showcases innovative technology developed in
Wyoming, leveraging existing
assets and positioning the state as a leader in renewable natural
gas and carbon capture, utilization, and storage (CCUS).
- Scaling CCF's technology throughout the Powder River Basin
could make Wyoming the largest
producing state for RNG and sequestered CO2, benefiting the state's
energy and agricultural industries, economy, and citizens.
Ryan Waddington, CEO of CCF,
stated, "We are incredibly pleased to have secured investment from
some of the smartest and most experienced energy entrepreneurs,
operators, and investors in the country. This capital, along with
the WEA matching funds, will enable us to fully commercialize the
BiCRS+RNG process and realize the technology vision behind it,
which is nearly twenty years in the making."
Susan Vick Dinges, Syren Capital,
commented, "Cowboy's technology is coming to market at a critical
juncture in both RNG and CDR markets. Demand for RNG is growing
beyond the traditional transportation fuel markets, however
traditional RNG supply volumes are constrained and require higher
end buyer prices to Cowboy. Similarly, demand for high quality,
long duration carbon removal is exploding, but at high costs -
emerging solutions like DAC are not yet ready to deliver. The
investor community recognized that Cowboy is ready to carve out a
leadership position in both sectors by delivering both RNG and CDR
attributes and credits to market in the near term – and with
greater scale than the competitive landscape."
Dan Dinges, Chairman of Machan
Investments, added, "We have been impressed with the company's
continued progress since our initial investment in 2022 in all
areas of regulatory, compliance, operations, commercial and
refining development costs to add value to offtake buyers. Machan
is excited to lead this financing and bullishly support Cowboy's
commercialization and scale up."
David Kailbourne, CEO of REV LNG,
LLC and Renewable Operations Company, LLC, also remarked, "I am
looking forward to joining the Cowboy Board, and guiding the
management team as they work to achieve the next technology,
commercial and market milestones for the company. Cowboy's
leadership has done an exceptional job positioning the company for
success on every dimension – commercially, they are unparalleled in
scale to deliver RNG and sequester carbon in the growing voluntary
markets."
Learn more at https://www.cowboycleanfuels.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cowboy-clean-fuels-announces-transformative-financing-and-commercial-progress-302201801.html
SOURCE Cowboy Clean Fuels