Utility Global, a leader in off-gas-to-value solutions, has announced a $53 million raise in its ongoing Series C financing round. The funding is led by the OPG Pension Plan and joined by global steel company ArcelorMittal S.A. (NYSE: MT) through its XCarb® Innovation Fund, as well as existing investors Ara Partners and Aramco Ventures. This funding round supports Utility Global’s continued expansion and commercialization efforts for its proprietary eXERO™ gas production technology, which is designed to decarbonize hard-to-abate industries such as steel, biogas-to-hydrogen mobility, energy, and chemicals.
As part of the financing, ArcelorMittal and Utility Global have signed a Collaboration Agreement to develop a commercial facility at one or more of ArcelorMittal’s steel plants. These strategic investments underscore the unique approach Utility Global is taking to decarbonize industries. The funds will accelerate the company’s go-to-market strategy, focusing on the final design and productization of its H2Gen™ product line, with plans to deploy the first commercial units by 2026.
Utility Global’s eXERO™ technology recently completed a successful demonstration program at a commercial steel facility, where it became the first to produce hydrogen from blast furnace off-gases in a single reactor. With this milestone achieved, the company is now shifting towards large-scale commercial deployments. This innovative solution converts process gases into clean hydrogen on-site, offering a cost-effective way for industries to reduce greenhouse gas emissions and extend the life of their existing assets.
CEO Claus Nussgruber stated, “We are fortunate to have a growing number of high-caliber investors backing our commercialization efforts. Our eXERO™ solution is a game-changer, providing a cost-effective and efficient way to reduce emissions and produce clean hydrogen.”
Launched in 2021, ArcelorMittal’s XCarb® Innovation Fund focuses on investing in technologies that help transition the steel industry to carbon-neutral production. It has already committed investments in a variety of decarbonization technologies such as renewable energy, green hydrogen, carbon capture, and energy storage.
Under the new collaboration, Utility Global will establish a commercial facility at an ArcelorMittal steel plant, with the specific location to be announced. Irina Gorbounova, head of the XCarb® Innovation Fund, commented, “For sectors like steel, scalable and cost-effective decarbonization solutions are critical. Utility Global’s technology offers both, making it a valuable addition to our portfolio of investments.”
Ara Partners, the majority investor in Utility Global, remains committed to supporting the company’s growth. “We are very pleased to welcome these distinguished investors and look forward to the commercial scaling with both companies,” said Cory Steffek, partner at Ara and a member of Utility Global’s board. Ara has raised over $6 billion since 2017 and invests in companies focused on decarbonizing the industrial economy.
Early investors in Utility Global also include Saint-Gobain, with the latest round advised by TPH&Co., the energy division of Perella Weinberg Partners.
