Norwegian aluminum and renewable energy producer Norsk Hydro has purchased a stake in carbon capture start-up Verdox for $20 million.
Just recently, Verdox made headlines after it received funding of $80 million from Bill Gates via his Breakthrough Energy Ventures capital fund and other investors.
The start-up specializing in direct air capture (DAC) saw a major breakthrough in its technology that may significantly help reduce the costs of capturing CO2 emissions, which, in turn, is what piqued investors’ interest.
After the breakthrough, Verdox announced its plans to move its technology from the lab, to which it had thus far been limited, to industrial facilities.
And Norsk Hydro now plans to use that very same technology to reduce its own emissions.
Last year, Norsk Hydro pledged to cut its carbon emissions by 30% before 2030, and by 2050, the company intends to reach net zero.
There is an ever growing demand for metal production with a lower carbon footprint, as Eivind Kallevik, head of Hydro’s aluminum production division shared.
And so, Hydro’s ultimate goal is to achieve net zero emissions from its production process.
The company believes that with the help of Verdox technology applied at existing smelters, the aluminum manufacturer will speed its decarbonization process, while also securing the future of its plants in the long-term.
Norsk Hydro was very selective about the carbon capture technology it preferred to use for this purpose and assessed over 50 carbon capture solutions before choosing Verdox.
Both companies have declined to name the size of the stake purchased by the Norwegian aluminum company.
Similarly, Verdox has also refused to disclose the names of any of its other partners in the industrial sector due to confidentiality agreements.