Aramco Ventures Invests in Utility Global's Series C Round
The partnership between Aramco Ventures and Utility Global began in late 2022 through a Series B round that raised $25 million.
Saudi Arabia’s Aramco Ventures – the corporate venturing arm of Aramco, the world's leading integrated energy company – has increased its investment in Utility Global, a Houston-based off-gas-to-value company that has raised US$53 million in its ongoing Series C funding round.[1]
This funding round has been led by Canada’s Ontario Power Generation (OPG) Pension Plan, and it includes participation from multinational steel producer ArcelorMittal through its XCarb Innovation Fund, along with existing investors like Aramco Ventures and global private equity and infrastructure investment firm Ara Partners.
The partnership between Aramco Ventures and Utility Global began in late 2022 during a Series B round that raised $25 million.
The latest investment aims to support the commercialization of Utility Global’s patented eXERO technology, which focuses on reducing greenhouse gas emissions.
Alongside this funding, Utility Global and ArcelorMittal have signed a collaboration agreement to develop a commercial facility at one or more of ArcelorMittal's integrated steel plants.
In April, Utility Global completed a demonstration program at a commercial steel facility, achieving a milestone by producing hydrogen from blast furnace off-gases in a single reactor. As a result, Utility Global is preparing for the deployment of its first commercial units under the H2Gen product line, with a target launch date set for 2026.
ArcelorMittal’s XCarb Innovation Fund, launched in 2021, invests in companies that are developing technologies to support carbon-neutral steelmaking. Since its inception, the fund has invested in eight companies focused on various decarbonization technologies, including renewable energy and carbon capture.
Ara Partners is a majority investor in Utility Global, having invested in the company since 2021. The firm aims to decarbonize the industrial economy by bridging the gap between intellectual property and real assets, managing a portfolio of approximately 30 companies and having raised over $6 billion since 2017.
In addition to the recent investments from Aramco Ventures, OPG Pension Plan, and ArcelorMittal, Utility Global also counts early investors such as Saint-Gobain among its supporters. TPH&Co., the energy division of Perella Weinberg Partners, served as the exclusive financial advisor to Utility Global throughout this funding round.
In June, Saudi Aramco's highly anticipated $12 billion share sale witnessed a surge in demand with all shares being snapped up mere hours after the deal opened. The price of one share ranged between SAR 26.70 ($7.12) and SAR 29 ($7.73). The offering coincided with OPEC+'s decision to extend production cuts into 2025.
During Aramco's 2019 initial public offering (IPO), global investors mainly balked at valuation estimates, leaving the government reliant on domestic buyers. The $29.4 billion IPO received $106 billion in orders, with international purchasers receiving approximately 23% of the shares.