Capital infusion will help accelerate deployment of solutions aimed at abating the single largest source of the oil and gas industry's vented methane emissions
OGDEN, Utah, April 23, 2020 /PRNewswire/ -- Qnergy, the world's leading manufacturer of Stirling energy systems, today announced the closing of a $10 million Series B funding round led by OGCI Climate Investments ("CI"), Tene Capital ("Tene") and Kibbutz EHI ("EHI").
The funds will allow the company to accelerate the deployment of its compressed air pneumatics product, CAP3. The application, which couples Qnergy's remote power generators with air compressors, offers a low emission alternative to gas pneumatic devices currently used in upstream oil and gas.
Pneumatic devices powered by pressurized natural gas are widely used in the oil and gas industry for process control. The vented gas from these devices is the single biggest source of vented methane emissions, accounting for 67 million tCO2e per year across North America in 2019. The potential mitigation from switching methane pneumatics to CAP3 air pneumatics is estimated to be as much as 1 million tCO2e by 2029, the equivalent of taking over 2.1 million cars off the road.
"We are pleased to welcome CI as a new investor to Qnergy and are grateful for the vote of confidence in the technology, team and mission," said Dr. Ory Zik, Qnergy's CEO. "The new funding will accelerate deployment and we look forward to working with customers on decarbonizing the oil and gas supply chain."
Pratima Rangarajan, CEO of OGCI Climate Investments, said "We are pleased to add Qnergy to our portfolio of methane reduction solutions. We believe Qnergy's technology has the potential to significantly reduce new methane emissions from oil and gas operations which is vital for improving the pace of warming."
Qnergy is the only company that has a Stirling-based, stand-alone power generator: the PowerGen. Thanks to the technology's unparalleled reliability, major and independent oil and gas companies already rely on the system to meet their remote power needs. The PowerGen has proven itself to be more cost effective than alternatives thanks to near-zero maintenance costs, leading to a significant growth in 2018 and 2019.
Qnergy successfully pitched its technology to OGCI Climate Investments during its 2020 Investment Day held virtually on 9 March, focused on decarbonizing upstream, midstream and downstream oil and gas operations.
Utah-based Qnergy is the world's leading clean technology manufacturer of Stirling energy systems. Qnergy provides reliable remote power generators for the 500W-10,000W range to help customers improve operational efficiency, decrease operating cost and reduce emissions. Qnergy's Stirling generators are an enclosed system that requires no lubrication, maintenance or repair, delivering tens of thousands of hours of uninterrupted operation. Learn more https://www.qnergy.com/
About OGCI Climate Investments
OGCI Climate Investments is a $1B+ fund that invests in solutions to decarbonize sectors like oil and gas, industrials and commercial transport. We look for outcomes that reduce methane and carbon dioxide emissions, and that can recycle or store carbon dioxide. Achieving significant impact requires global implementation and commercial frameworks – at OGCI Climate Investments, we collaborate with innovators, investors and governments to fund and implement impactful solutions. To learn more about OGCI Climate Investments, please visit www.oilandgasclimateinitiative.com/climate-investments
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