Parallel Carbon announced they closed a $3.6 million Seed funding round amidst COP28. The financing is led by Aramco Ventures and backed by other key investors – Counteract, expanding their previous investment, Axon Partners, DNX Ventures, Voyagers, Rumbo Ventures, and angel investor Andrew MacKay.
Parallel Carbon’s process includes utilizing renewable energy for clean hydrogen production while pulling carbon dioxide from the atmosphere. Its system integrates water electrolysis and direct air capture (DAC) to reduce capital costs and better utilize low-cost renewable energy.
Parallel Carbon’s electrochemical process operates with intermittent electricity, providing critical advantages compared to high-temperature direct air capture pathways, such as those offered by Occidental Petroleum through their recent acquisition of Carbon Engineering.
Parallel Carbon’s hardware platform promises diversified revenue streams and climate benefits while aligning with the global net-zero emissions challenge. Projects will generate income from producing clean hydrogen, significantly reducing emissions compared to fossil-derived alternatives.
Another project revenue comes from pairing DAC with permanent carbon storage underground or in concrete to generate high-integrity carbon dioxide removal (CDR) credits. In effect, projects produce carbon-negative hydrogen which significantly reduces the cost of zeroing global emissions.
“By integrating low-cost production of zero-carbon hydrogen and air-captured carbon dioxide, we’re building a critical tool to ending the world’s reliance on fossil fuels and putting carbon back underground,” said Ryan Anderson, CEO and founder of Parallel Carbon. “Once deployed at scale, our platform will provide affordable carbon removal, reduce the cost of decarbonizing grids, and become a scalable foundation for producing sustainable shipping and aviation fuels.”
“Aramco Ventures is thrilled to lead the seed round financing for Parallel Carbon. Bruce Niven, Executive Managing Director of Aramcorbon sequestration allows for synergistic cost reduction of these processes. We look forward to working with the team to help scale this innovative solution.” Bruce Niven, Executive Managing Director of Aramco Ventures.
In a strategic move, Parallel Carbon has also officially transitioned to a US-based company, aligning future growth and deployment with incentives provided by the US Inflation Reduction Act. The R&D arm in Manchester, UK continues to expand with the addition of 3 new hires across engineering and operations. The Seed funds will be used to scale their team, technology, and begin delivering carbon dioxide removal (CDR) credits to their customers.