Cleantech startup AtmosZero announced it has raised $21 million, with proceeds to be used to commercialize its solution to combat industrial emissions through the decarbonization of industrial steam.
Industrial steam, used in industries ranging from food and beverage production to chemical production and throughout the built environment, accounts for approximately 15% of industrial energy use and is generated primarily through the burning of fossil fuels. .
The result of a Colorado State University project in 2021, AtmosZero developed the Boiler 2.0, an electrified modular boiler that uses air heat to generate high-temperature steam with maximum efficiency and zero carbon emissions. According to the company, the solution is significantly more efficient than current electric boilers, using half the electricity, and is a drop-in system, allowing companies to replace their existing natural gas and oil boilers quickly and cost-effectively.
Last year, AtmosZero revealed a strategic partnership with New Belgium Brewing Company that involves a large-scale pilot at New Belgium's flagship facilities. Additionally, the company launched its European subsidiary, AtmosZero Europe, BV, based in Amsterdam. AtmosZero will use this investment to advance both efforts, including executing the commercial pilot and expanding the company's European reach.
Addison Stark, CEO and co-founder of AtmosZero said:
“Our vision is to eliminate global emissions from fossil fuel boilers. The investment today from leading US and European investors is a tremendous validation of our technology and approach to eliminating Scope 1 boiler emissions.”
The round was co-led by venture capitalists Engine Ventures and 2150, and included participation from Constellation Technology Ventures, the strategic venture arm of Constellation Energy Corporation, and existing backers Energy Impact Partners, Starlight Ventures and AENU.
Michael Kearney, general partner at Engine Ventures, said:
“The path to net-zero emissions goes through the boiler room and requires replacing existing fossil fuel-based systems. Reducing dependence on fossil fuels is not just an environmental imperative – it is also a geopolitical imperative. We are excited to support the AtmosZero team’s mission to decarbonize industrial emissions with their electrified, scalable solution.”
Christian Hernandez Gallardo, partner and co-founder of 2150 added:
“Industrial process heat in the form of steam is essential for industries ranging from food and beverage to district heating and is responsible for more than 2 gigatons of carbon dioxide per year. We were looking for a solution that could unlock the vast potential for impact in this market, with an offering that was financially obvious to customers. The technology that Addison and his all-star team have developed does just that and we look forward to supporting AtmosZero as they roll out their technology to eagerly awaiting customers in Europe.”
In addition to the Series A investment, AtmosZero recently received a $3.2 million grant from the U.S. Department of Energy's Office of Industrial Efficiency and Decarbonization (IEDO), aimed at helping rapidly decarbonize America's industrial sector .
