Newlight Completes US$125M In New Equity Round Led by GenZero
Huntington Beach-based startup, Newlight Technologies, Inc., a pioneering company in decarbonization technology, has successfully completed an equity investment round amounting to US$125 million. This round was spearheaded by GenZero. Newlight Technologies is renowned for its innovative approach of utilizing natural microorganisms to transform greenhouse gases into high-quality AirCarbon®-based materials.
The investment round witnessed participation from several notable entities including GenZero, a decarbonization-centric investment platform owned by Temasek, Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental (Oxy) that focuses on promoting low-carbon technologies and business solutions, Charter Next Generation (CNG), North America’s premier producer of specialty films, and a global luxury goods manufacturer. Additionally, several other new and existing shareholders were part of this round.
In alignment with the financial participation, Newlight has also finalized development agreements with CNG to bring to market specialty films decarbonized with AirCarbon. They have also collaborated with OLCV to utilize direct air capture (DAC) systems for developing carbon dioxide feedstock essential for AirCarbon production plants.
Currently, Newlight is distributing AirCarbon-based products and materials to over 5,000 global locations, catering to diverse sectors such as fashion, entertainment, food service, hotel, and automotive. This fresh investment is anticipated to bolster Newlight’s efforts in expanding its AirCarbon manufacturing platform. The ultimate aim is to utilize greenhouse gas as a resource for producing decarbonized materials on a global scale.
Mark Herrema, CEO of Newlight, expressed his enthusiasm about this significant milestone, emphasizing the company’s two-decade-long journey in research, development, and commercialization. He believes that this capital round marks a pivotal moment for Newlight, setting the stage for large-scale biological decarbonization.
The article further delves into the unique process adopted by Newlight. They employ microorganisms discovered in California that consume greenhouse gas. These microorganisms produce a molecule known as PHB (polyhydroxybutyrate), which acts as a biological energy and carbon storage vehicle. Once purified, PHB can be molded and melted, making it a versatile material in the market. AirCarbon, by weight, comprises approximately 40% oxygen (sourced from air) and 60% carbon (derived from greenhouse gas).
Frederick Teo, CEO of GenZero, lauded Newlight’s transformative approach in combining technology and nature to produce biomaterials. He highlighted the potential of AirCarbon in replacing fossil-based plastics, leading to a substantial reduction in carbon emissions.
The article also touches upon the initiatives of Oxy Low Carbon Ventures and their collaboration with Newlight. Derek Willis, Vice President of Oxy Low Carbon Ventures, expressed his excitement about this partnership and the shared vision of decarbonization.
In conclusion, the capital from this round will significantly enhance Newlight’s production capabilities of AirCarbon, both in their existing California facility and a new production unit being set up in Ohio.
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