Published: February 28, 2025 |

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CarbonQuest has closed on its $20 million funding round, led by Riverbend Energy Group, with additional funding from two institutional investors.

The company secured new capital from Energy Capital Ventures (ECV) and Aligned Climate Capital to add to the capital raised with Riverbend Energy Group. CarbonQuest will leverage this funding to deploy its Distributed Carbon Capture™ technology to a broader range of customers across North America and hire industry-leading talent.

This new funding will help CarbonQuest achieve the lowest $/ton in the carbon capture industry and improve system efficiency. Drawing from its experience with six commercial deployments, the company will address additional markets that rely on onsite power or re-use CO₂ onsite.

“We are thrilled to close out the funding round with two more investors. This investment will accelerate our scaling efforts, allow us to hire more talent, and support the development of a diverse base of projects. We also value the expertise of our investors in the key sectors where we enable decarbonization,” said Shane Johnson, CEO of CarbonQuest.

Riverbend Energy Group, Energy Capital Ventures, and Aligned Climate Capital identified CarbonQuest as a key enabler of the energy transition and distributed carbon capture as an under-invested segment of the carbon capture, utilization, and storage (CCUS) space.

The investments reflect the growing demand by a variety of sectors for economically viable decarbonization solutions and their belief that CarbonQuest’s technology is uniquely positioned to address this underserved market and scale rapidly in multiple market segments. The fact that the company already proved its modular, stackable, solid-sorbent-based process in several commercial settings is an important milestone that the investors are building on.

“As a venture capital fund focused on the resilience, sustainability, and digital transformation of the natural gas industry, we are extremely excited to add CarbonQuest to our portfolio,” said Vic Pascucci, managing general partner and co-founder of Energy Capital Ventures®.

“CarbonQuest brings a stellar team and a critical decarbonization solution to a wide range of industries, including utilities, manufacturing, data centers, and facilities with onsite power. They are a game-changer in green molecules™ innovation,” added Pascucci.

CarbonQuest sees solid-sorbent-based, modular CCUS solutions as the future of the carbon capture industry in many applications. The versatility and smaller physical footprint, combined with an increasing customer demand for onsite power, mean opportunity for dramatic acceleration of the technology in several markets at once.

“Commercial and industrial facilities across the country urgently need cost-effective carbon capture solutions. CarbonQuest’s proven technology is already serving these customers, and our investment will help the company scale further, faster. We are excited to welcome CarbonQuest into our portfolio and contribute our infrastructure and finance experience,” said Peter Davidson, CEO of Aligned Climate Capital.

Since its initial investment from Riverbend Energy Group, CarbonQuest has made significant progress in expanding its commercial reach. In December 2024, it entered into a memorandum of understanding (MoU) with CO₂ mineral storage operator Carbfix to identify sites prime for carbon capture and mineralization. CarbonQuest is finalizing several other projects and partnerships that aim to accelerate immediate emissions reductions in “hard-to-abate” facilities across North America.

“We are excited to welcome Aligned Climate Capital and Energy Capital Ventures into the round. Together, we see an amazing future for CarbonQuest and its ability to accelerate growth,” said Joe Passanante, managing director at Riverbend.

CarbonQuest is advancing decarbonization with a modular, accessible solution that captures CO₂ from buildings and onsite power generation systems before it is emitted to the atmosphere. The captured CO₂ is then liquified and transported to local businesses that need carbon for their production processes. By introducing its technology and Sustainable CO₂™ into the market, CarbonQuest enables its customers to support a circular economy while meeting ESG and net-zero goals with a cost-effective, turnkey solution.

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