Norwegian Carbon Centric, which develops carbon capture projects for waste and bio-incineration, has announced a capital injection of NOK 120 million (nearly $11.4 million) from two new investors: asset manager Obligo and energy group Vardar.
With the move, Obligo and Vardar are joining Carbon Centric’s existing and largest owner Østfold Energi. Obligo, which is the largest investor in this funding round, makes the investment from its climate impact fund.
As part of the financing, Carbon Centric will also receive a substantial green loan from Norway’s largest bank DNB, as well as support for one of its projects through US-based fintech company Enova (NYSE: ENVA).
“The timing was right to strengthen the company with both expertise and capital, and we are thrilled to have Obligo and Vardar on board. This shows that our projects are attractive to both investors and banks,” Carbon Centric’s CEO, Fredrik Häger, commented on the investment.
As a next step, Carbon Centric plans to build a full-scale carbon capture plant for waste incineration in Rakkestad in Eastern Norway, which will be the first of its kind, the company said.
“While we wait for CO2 storage to become available and profitable, we are turning recycled carbon dioxide into a raw material which can be used for new products such as e-fuel,” Häger said.
Carbon Centric’s project portfolio includes three Norwegian projects with an estimated capture capacity of up to 170,000 tons of carbon dioxide (CO2) a year starting from 2025. According to Häger, the company will look to raise over NOK 1 billion to fund those projects.
Recently, Carbon Centric also announced an agreement to set up a carbon capture installation at Iceland’s only waste incineration plant.
Following the new investment, the Grålum-based company will hire 8-10 new employees to boost its expertise in project development, process and thermal energy systems, economics and finance, logistics, and technical sales. Recruitment will take place over the next year, preferably locally.