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Utility Global Raises $53 Million of Ongoing Series C Financing

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Utility Global, a company developing eXERO™ gas production technology for hard-to-abate industries, has raised $53 million in an ongoing Series C financing. The round was led by the OPG Pension Plan and joined by ArcelorMittal's XCarb® Innovation Fund, Ara Partners, and other existing investors.

ArcelorMittal and Utility Global have also entered a Collaboration Agreement to develop a commercial facility at one or more of ArcelorMittal's integrated steel plants. The funding will accelerate commercialization of Utility Global's eXERO technology, focusing on final design and productization for deploying first commercial units in 2026 under the H2Gen™ product line.

The company's technology aims to transform industries by providing a cost-effective way to reduce greenhouse gas emissions while producing low-carbon intensity fuels and chemicals.

Utility Global, un'azienda che sviluppa la tecnologia di produzione di gas eXERO™ per settori difficili da decarbonizzare, ha raccolto 53 milioni di dollari in un'attuale fase di finanziamento di Serie C. Il round è stato guidato dal Fondo Pensione OPG e ha visto la partecipazione di ArcelorMittal's XCarb® Innovation Fund, Ara Partners, e altri investitori esistenti.

ArcelorMittal e Utility Global hanno anche firmato un Accordo di Collaborazione per sviluppare un impianto commerciale in uno o più degli impianti siderurgici integrati di ArcelorMittal. Il finanziamento accelererà la commercializzazione della tecnologia eXERO di Utility Global, concentrandosi sul design finale e sulla productizzazione per il lancio delle prime unità commerciali nel 2026 sotto la linea di prodotti H2Gen™.

La tecnologia dell'azienda punta a trasformare le industrie offrendo un modo economico per ridurre le emissioni di gas serra producendo al contempo carburanti e chimici a bassa intensità di carbonio.

Utility Global, una empresa que desarrolla la tecnología de producción de gas eXERO™ para industrias difíciles de descarbonizar, ha recaudado 53 millones de dólares en una ronda de financiación de Serie C en curso. La ronda fue liderada por el Fondo de Pensiones OPG y contó con la participación del Fondo de Innovación XCarb® de ArcelorMittal, Ara Partners y otros inversionistas existentes.

ArcelorMittal y Utility Global también han firmado un Acuerdo de Colaboración para desarrollar una instalación comercial en uno o más de los planteles de acero integrados de ArcelorMittal. La financiación acelerará la comercialización de la tecnología eXERO de Utility Global, centrándose en el diseño final y la producción de las primeras unidades comerciales en 2026 bajo la línea de productos H2Gen™.

La tecnología de la empresa tiene como objetivo transformar las industrias al proporcionar una forma rentable de reducir las emisiones de gases de efecto invernadero mientras produce combustibles y productos químicos de baja intensidad de carbono.

Utility Global는 탈탄소화하기 어려운 산업을 위한 eXERO™ 가스 생산 기술을 개발하는 회사로, 현재 진행 중인 C시리즈 금융에서 5300만 달러를 모집했습니다. 이번 라운드는 OPG 연금 계획이 주도했으며, ArcelorMittal의 XCarb® 혁신 기금, Ara 파트너스 및 기타 기존 투자자들도 참여했습니다.

ArcelorMittal과 Utility Global은 또한 ArcelorMittal의 통합 제철소 중 하나 이상에서 상업 시설을 개발하기 위한 협력 계약을 체결했습니다. 이 자금은 H2Gen™ 제품 라인에 따라 2026년에 첫 상업 단위를 배포하기 위한 최종 설계 및 제품화에 집중하여 Utility Global의 eXERO 기술의 상용화를 가속화할 것입니다.

회사의 기술은 저탄소 연료와 화학 물질을 생산하면서 온실가스 배출을 줄이는 비용 효율적인 방법을 제공하여 산업을 변화시키는 것을 목표로 합니다.

Utility Global, une entreprise développant la technologie de production de gaz eXERO™ pour les industries difficiles à décarboniser, a levé 53 millions de dollars dans le cadre d'un financement de Série C en cours. Ce tour de table a été dirigé par le Fonds de Pension OPG et a vu la participation du Fonds d'Innovation XCarb® d'ArcelorMittal, Ara Partners et d'autres investisseurs existants.

ArcelorMittal et Utility Global ont également signé un Accord de Collaboration pour développer une installation commerciale dans un ou plusieurs des sites sidérurgiques intégrés d'ArcelorMittal. Le financement accélérera la commercialisation de la technologie eXERO de Utility Global, en mettant l'accent sur la conception finale et la mise en production des premières unités commerciales en 2026 sous la ligne de produits H2Gen™.

La technologie de l'entreprise vise à transformer les industries en offrant une solution économique pour réduire les émissions de gaz à effet de serre tout en produisant des carburants et des produits chimiques à faible intensité carbone.

Utility Global, ein Unternehmen, das die eXERO™-Gasproduktionstechnologie für schwer dekarbonisierbare Industrien entwickelt, hat in einer laufenden Serie-C-Finanzierungsrunde 53 Millionen US-Dollar gesammelt. Die Runde wurde vom OPG-Pensionsplan geleitet und erhielt Unterstützung vom XCarb® Innovationsfonds von ArcelorMittal, Ara Partners und anderen bestehenden Investoren.

ArcelorMittal und Utility Global haben außerdem einen Kooperationsvertrag unterzeichnet, um eine kommerzielle Anlage in einem oder mehreren integrierten Stahlwerken von ArcelorMittal zu entwickeln. Die Finanzierung wird die Kommerzialisierung der eXERO-Technologie von Utility Global beschleunigen, wobei der Schwerpunkt auf dem endgültigen Design und der Produktentwicklung für die Einführung der ersten kommerziellen Einheiten im 2026 unter der Produktlinie H2Gen™ liegt.

Die Technologie des Unternehmens zielt darauf ab, Industrien zu transformieren, indem sie eine kostengünstige Möglichkeit bietet, die Treibhausgasemissionen zu reduzieren und gleichzeitig kohlenstoffarme Brennstoffe und Chemikalien zu produzieren.

Positive
  • Raised $53 million in Series C financing
  • Collaboration Agreement with ArcelorMittal for commercial facility development
  • Successful completion of demonstration program at a commercial steel facility
  • First hydrogen produced from blast furnace off-gases in a single reactor
  • Planned deployment of first commercial units in 2026
Negative
  • None.

Insights

Utility Global's $53 million Series C financing round is a significant development, signaling strong investor confidence in their eXERO™ gas production technology. The investment from ArcelorMittal's XCarb® Innovation Fund and the collaboration agreement for a commercial facility are particularly noteworthy, as they validate the technology's potential in the steel industry.

The focus on commercialization, with plans for first commercial units in 2026, suggests a clear path to market. This could translate into revenue generation in the medium term. The technology's ability to produce hydrogen from blast furnace off-gases in a single reactor is innovative and could provide a competitive edge in the growing market for industrial decarbonization solutions.

For ArcelorMittal (NYSE: MT), this investment aligns with their decarbonization strategy and could potentially lead to cost savings and reduced emissions in their steel production processes. However, investors should note that the commercial success of this technology is still unproven at scale and full implementation may take several years.

Utility Global's eXERO™ technology represents a significant advancement in addressing emissions from hard-to-abate sectors. The ability to convert process gases into clean hydrogen in a single reactor, on-site, is a game-changer for industries like steel production, which are under increasing pressure to reduce their carbon footprint.

The technology's potential to extend the life of existing assets while providing substantial emissions reductions is particularly valuable. This dual benefit could accelerate adoption in industries resistant to costly overhauls of their infrastructure. The successful demonstration at a commercial steel facility, producing hydrogen from blast furnace off-gases, is a critical milestone that proves the concept's viability.

However, the true test will be in scaling this technology to commercial levels. The planned deployments in 2026 will be important in demonstrating the technology's effectiveness and economic viability at scale. If successful, this could position Utility Global as a key player in the industrial decarbonization market, which is expected to grow significantly in the coming decades.

Additional investments in round led by the OPG Pension Plan, and joined by ArcelorMittal XCarb® Innovation Fund, Ara Partners and other existing investors

HOUSTON--(BUSINESS WIRE)-- Utility Global, the off-gas-to-value company pioneering its proprietary eXERO™ gas production technology optimized for hard-to-abate industries, today announced that it has raised $53 million of an ongoing Series C financing led by the OPG Pension Plan and joined by multinational steel company, ArcelorMittal S.A. (NYSE: MT), via its XCarb® Innovation Fund, alongside current investors Ara Partners and Aramco Ventures. This investment is part of Utility Global’s current growth equity funding round. ArcelorMittal and Utility Global also entered into a Collaboration Agreement to develop a commercial facility at one or more of ArcelorMittal’s integrated steel plants. These key strategic investments and commercialization steps further demonstrate the unique technological approach Utility Global is pursuing to decarbonize industries such as steel, biogas to hydrogen mobility, energy production, chemicals and refining, and other hard-to-abate sectors.

The proceeds from this round will serve to further accelerate commercialization and go-to-market strategies for Utility Global’s proven, patented and tested eXERO technology. With the successful completion of its demonstration program at a commercial steel facility resulting in the first hydrogen ever produced from blast furnace off-gases in a single reactor, the company has shifted to commercial deployments. Specifically, the investments will focus on final design and productization aimed at deploying first commercial units in 2026, under the company’s H2GenTM product line. Utility Global’s innovative technology will transform steel, biogas to mobility, and other industries by introducing a new, cost-effective way of reducing greenhouse gas emissions while producing low-carbon intensity fuels and chemicals that benefit all involved.

“We have a growing number of high-caliber investors supporting our commercialization. Customers and investors are seeking cost-effective, onsite decarbonization solutions that provide material reductions in greenhouse gas emissions this decade,” stated Claus Nussgruber, chief executive officer of Utility Global. “Our eXERO solution is the first of its kind to convert process gases into clean hydrogen in a single reactor, onsite, in a cost-effective manner that extends the life of existing customer assets and processes, while providing significant emissions reductions.”

ArcelorMittal's XCarb® Innovation Fund, launched in 2021, has been investing in companies developing breakthrough technologies that will accelerate the steel industry’s transition to carbon neutral steelmaking. Since its launch, the fund has committed investments in eight companies covering a range of decarbonization technologies – renewable energy, long duration energy storage, carbon capture and utilization, green hydrogen production, nuclear energy, molten oxide electrolysis and biochar production.

Under the Collaboration Agreement, Utility Global will deploy a commercial facility at one or more of ArcelorMittal’s integrated steel plants, with site identification to be announced at a later date.

Irina Gorbounova, Head of ArcelorMittal XCarb® Innovation Fund commented, “For hard-to-abate sectors like steel, decarbonization technologies need to be cost-effective and scalable. Utility Global’s eXERO technology platform has the potential to be both, which is what makes it an attractive investment for our Innovation Fund. It is a welcome addition to the broad portfolio of investments which reside in the Innovation Fund, and we look forward to working alongside Utility Global’s management team to support the commercialization of the technology as it matures.”

Ara Partners (Ara) continues to be a majority investor in Utility Global. Ara’s sole purpose is to decarbonize the industrial economy by bridging the gap between IP and real assets. Ara invested in Utility Global in 2021 and continues to support the company’s growth trajectory as it prepares for commercial unit deployments. “We remain highly supportive of Utility Global and the management team,” said Cory Steffek, partner at Ara and Utility Global board member. “We are very pleased to add these two distinguished investors to the Utility Global brand and look forward to the commercial ramp with both companies.” Ara has a portfolio of approximately 30 companies focused on decarbonization, having raised in excess of $6 billion since 2017.

In addition to recent investments from Ara Partners, OPG Pension Plan, ArcelorMittal XCarb® Innovation Fund, and Aramco Ventures, early investors also include Saint-Gobain.

TPH&Co., the energy business of Perella Weinberg Partners, served as exclusive financial advisor to Utility Global.

About Utility Global

Utility Global is a Houston, Texas-based off-gas-to-value company pioneering the eXERO™ gas production technology to rapidly unlock an affordable beyond-net-zero low carbon future. Utility Global has developed a proprietary reactor which processes variable industrial process gases, without the use of electricity, into high-purity hydrogen and a concentrated CO2 stream that can be conveniently captured onsite from a single cost-effective location. The hydrogen produced from steelmaking gases can be recirculated into the steelmaking process to replace coke, while the purity of the concentrated CO2 stream significantly simplifies and reduces the cost of subsequent carbon capture - an important solution for decarbonizing existing steelmaking processes. The company’s mission is to deliver disruptive technology solutions that overcome legacy sustainability challenges through an unparalleled Innovation Engine and Rapid Commercialization Methodology.

For more information on Utility Global, please visit www.utilityglobal.com.

About Ara Partners

Ara Partners is a global private equity and infrastructure investment firm focused on industrial decarbonization. Founded in 2017, Ara Partners seeks to build and scale companies with significant decarbonization impact across the industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture sectors. The company operates from offices in Houston, Boston, Washington, D.C., and Dublin. Ara Partners closed its third private equity fund in December 2023 with over $2.8 billion in capital commitments. As of June 30, 2024, Ara Partners had approximately $6.3 billion of assets under management.

For more information about Ara Partners, please visit www.arapartners.com.

About ArcelorMittal

ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 15 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India.

ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2023 generated revenues of $68.3 billion, produced 58.1 million metric tonnes of crude steel and, 42.0 million tonnes of iron ore.

Our purpose is to produce smarter steels for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for the renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

For more information about ArcelorMittal, please visit https://corporate.arcelormittal.com/.

About Aramco Ventures

Aramco Ventures is the corporate venturing arm of Aramco, the world’s leading fully integrated energy and chemical enterprise. Headquartered in Dhahran with offices in North America, Europe and Asia, Aramco Ventures strategic venturing programs invest globally in start-ups and high growth companies with technologies of strategic importance to its parent company, Aramco, primarily supporting its operational decarbonization, new lower-carbon fuels businesses, and digital transformation initiatives. Aramco Ventures also operates Prosperity7, the company’s disruptive technologies investment program.

For more information, please visit www.aramco.com/en.

About Saint-Gobain

Worldwide leader in light and sustainable construction, Saint-Gobain designs, manufactures and distributes materials and services for the construction and industrial markets. Its integrated solutions for the renovation of public and private buildings, light construction and the decarbonization of construction and industry are developed through a continuous innovation process and provide sustainability and performance. The Group’s commitment is guided by its purpose, “MAKING THE WORLD A BETTER HOME”.

For more information about Saint-Gobain, please visit www.saint-gobain.com/en.

Nicolia Wiles

PRIME|PR

O: 512.477.7373

M: 512.698.7373

nwiles@prime-techpr.com

Source: Utility Global

FAQ

What is Utility Global's eXERO technology designed to do?

Utility Global's eXERO technology is designed to convert process gases into clean hydrogen in a single reactor, onsite, in a cost-effective manner. It aims to extend the life of existing customer assets and processes while providing significant emissions reductions in hard-to-abate industries.

Who are the key investors in Utility Global's Series C financing?

The key investors in Utility Global's Series C financing include the OPG Pension Plan as the lead investor, ArcelorMittal's XCarb® Innovation Fund, Ara Partners, and Aramco Ventures, among other existing investors.

What is the purpose of the Collaboration Agreement between Utility Global and ArcelorMittal (MT)?

The Collaboration Agreement between Utility Global and ArcelorMittal (MT) is to develop a commercial facility at one or more of ArcelorMittal's integrated steel plants, with the aim of implementing Utility Global's eXERO technology in steel production.

When does Utility Global plan to deploy its first commercial units?

Utility Global plans to deploy its first commercial units in 2026 under the company's H2Gen™ product line.

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