The deal  

British company Climate Investment (CI) has announced that it has invested in carbon capture company Trace Carbon Solutions. Following the CI investment, Trace will have more than $420m (£331.09) of equity capital commitments from Quantum Capital Group, CI and Trace management. 

Why it matters  

Trace Carbon Solutions is a US-based company that develops low-cost carbon capture and storage (CCS) technologies. This is the eighth CCS company that CI has invested in through its Catalyst Fund I. 

“CI’s background in investing across the CCS value chain will be highly valuable to our team as we continue to develop our projects across North America,” said Josh Weber, Trace’s chief executive officer. 

The CCS market size exceeded $6bn in 2022 and is expected to expand by more than 20% from 2023 to 2030.  

“Trace has developed an operating model that we believe can accelerate the buildout of CCS infrastructure,” CI Investment Principal Joey Bernica, who will join the Trace Board, said in a press release. “The firm has built an exceptional management team with proven expertise in developing gas infrastructure projects.”

The US Government’s Inflation Reduction Act (IRA) offers tax exemptions for large-scale carbon capture developments in the US. The IRA provides tax credits of $85 per tonne of CO₂ captured and stored and $180 for every tonne of CO₂ removed through direct air capture (DAC) and permanently stored. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

The details 

Trace Carbon Solutions is focused on the development of large-scale industrial emissions and works with companies in the oil and gas industry, power refining, petrochemicals and manufacturing. 

US policy has been very accommodating to carbon capture technologies in recent years. President Biden’s Bipartisan Infrastructure Law included more than $12bn of investments in next-generation carbon capture, DAC, integrated CCS demonstrations and industrial emissions reduction demonstration projects, as well as CO₂ transport and storage infrastructure, according to the White House. 

Our signals coverage is powered by GlobalData’s Thematic Engine, which tags millions of data items across six alternative datasets – patents, jobs, deals, company filings, social media mentions and news – to themes, sectors and companies. These signals enhance our predictive capabilities, helping us to identify the most disruptive threats across each of the sectors we cover and the companies best placed to succeed.