🇮🇸 US Investment giant Stonepeak eyes carbon capture in Iceland
New York-based investment firm Stonepeak has signed a preliminary agreement with Reykjavik Energy, a subsidiary of the city of ReykjavÃk, regarding an investment in carbon capture startup Carbfix.
According to recent meeting notes, which were published and subsequently removed from the company’s website, the board of Reykjavik Energy voted to accept underwriting conditions regarding an offer from Stonepeak. Currently, Stonepeak manages approximately USD 57 billion in assets, including a USD 2.8 billion fund dedicated to renewable energy investments.
Established as a research project in 2007, Carbfix’s technology dissolves CO2 in water and injects it underground where natural processes where within 2 years the CO2 forms stable carbonate minerals. Since 2012, Carbfix has mineralized over 80 thousand tons of CO2 in Iceland using proprietary technology.
Carbfix is already engaged in several large-scale projects to further implement and develop its technology. The company’s largest current project is Coda Terminal, recipient of a EUR 115 million (USD 121 million) grant from the EU’s Innovation Fund, with an expected capacity to mineralize 3 million tons of CO2 annually.
CO2 is captured at industrial sites in North Europe and shipped to the terminal where it is unloaded into onshore tanks for temporary storage. The CO2 is then pumped into a network of nearby wells where it is dissolved in water before being injected into basaltic bedrock.
However, financing Carbfix’s growing project portfolio with funds from ReykjavÃk Energy or its owners – is considered to be neither realistic nor reasonable. Advisors have estimated that the company needs between USD 18 and 25 million to finance its operations and investments over the next five years.
Plans to finance Carbfix with external funding have attracted the interest of a number of large investors, including the Microsoft Climate fund, Equinor and Copenhagen Infrastructure Partners. According to Carbfix’s business plan from 2022, a 20% stake would be valued around USD 10 million, which puts the valuation for the company at USD 50 million.
