AtmosZero Closes $21 Million in Series A, Moves Full Steam Ahead Toward Electrifying the Boiler Room
AtmosZero secures $21 million in Series A funding led by Engine Ventures and 2150 to accelerate commercialization of its Boiler 2.0 technology. Constellation Technology Ventures also participated in the round. The company aims to decarbonize industrial steam generation by extracting heat from the air, reducing global emissions from fossil-fueled boilers.
The recent Series A funding round of $21 million for AtmosZero marks a significant milestone in the company's trajectory towards decarbonizing industrial steam generation. The proprietary Boiler 2.0 technology developed by AtmosZero represents a notable advancement in environmental technology, with the potential to disrupt the traditional boiler industry, which has long relied on fossil fuels.
From an environmental standpoint, the ability to generate high-temperature steam without carbon emissions is a game-changer. It addresses a critical portion of industrial energy consumption that is responsible for a sizeable fraction of global greenhouse gas emissions. The electrification of boiler systems through AtmosZero's technology could accelerate the shift towards cleaner energy sources and contribute to the broader goals of reducing global carbon emissions. This is particularly relevant given the increasing regulatory pressures and carbon pricing mechanisms being implemented worldwide.
The financial implications of AtmosZero's Series A funding are multifaceted. On one hand, the investment signals confidence in the company's technology and business model, which could encourage further investments in the sector. On the other hand, the participation of strategic investors such as Constellation Technology Ventures indicates a growing interest from established energy companies in low-carbon technologies.
Investors and stakeholders should consider the potential cost savings for industrial users transitioning from fossil fuel-based boilers to AtmosZero's electrified solutions. The long-term financial benefits could be substantial, especially as carbon taxation becomes more prevalent and the cost of renewable electricity continues to decline. However, the initial capital expenditure and the scalability of the technology in different industrial contexts will be critical factors in determining its financial viability and market penetration.
AtmosZero's strategic moves, including the partnership with New Belgium Brewing Company and the expansion into the European market, indicate a targeted approach to market entry and scalability. The food and beverage industry, along with other sectors reliant on industrial steam, represents a significant market opportunity for AtmosZero's technology.
Market adoption will hinge on the technology's ability to integrate seamlessly with existing infrastructure, as well as the speed at which it can be deployed. The company's claim of providing a 'drop-in replacement product' suggests a focus on reducing barriers to adoption. The reception of AtmosZero's pilot programs and subsequent commercial rollouts will be critical in assessing the market's readiness for such a technology shift and the potential impact on the competitive landscape of boiler manufacturers and fossil fuel suppliers.
02/20/2024 - 08:00 AM
FORT COLLINS, Colo. --(BUSINESS WIRE)--
AtmosZero , the company on a mission to decarbonize steam, announced today the close of a $21 million Engine Ventures and 2150 to accelerate the commercialization of its Boiler 2.0 technology. Constellation Technology Ventures, the strategic venture arm of Constellation Energy Corporation (Nasdaq: CEG), also joined the round along with existing backers, Energy Impact Partners, Starlight Ventures, and AENU.
Today industrial steam, which is used across the built environment and industries from food and beverage to chemical manufacturing, is generated by burning fossil fuels onsite in boiler systems that account for nearly eight percent of global primary energy use. AtmosZero’s proprietary Boiler 2.0 technology extracts heat from the air and delivers high-temperature steam with maximum efficiency and zero carbon emissions, allowing companies to replace their existing natural gas and oil boilers quickly and cost-effectively.
“AtmosZero is solving for industrial decarbonization by electrifying the boiler room and building a scalable, drop-in replacement product rather than complex and expensive customized projects,” said Addison Stark, CEO and Co-Founder of AtmosZero. “Our vision is to eliminate global emissions from fossil-fueled 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 path to net-zero emissions runs through the boiler room and requires the replacement of existing fossil-based systems," said Michael Kearney, General Partner at Engine Ventures. “Reducing reliance on fossil fuels isn't just an environmental imperative -- it's a geopolitical one, too. We are thrilled to support the AtmosZero team's mission to decarbonize industrial emissions with its scalable, drop-in electrified solution."
Last year, AtmosZero unveiled a strategic partnership with New Belgium Brewing Company that involves a full-scale pilot at New Belgium’s flagship facility. Additionally, the company launched its European subsidiary, AtmosZero Europe, B.V., based in Amsterdam . AtmosZero will use this investment to advance both efforts including executing the commercial pilot and expanding the company’s European reach.
"Industrial process heat in the form of steam is essential for industries spanning food and beverage through to district heating and is responsible for over 2 gigatons of carbon dioxide per year,” said Christian Hernandez Gallardo, Partner and Co-Founder of 2150. “We were hunting for a solution that could unlock the vast impact potential in this market, with an offering that was a financial no-brainer to customers. The technology Addison and his all-star team have developed does exactly that and we look forward to supporting AtmosZero as they roll out their technology to the customers that eagerly await them in Europe.”
In addition to the Series A investment, AtmosZero was recently awarded a $3.2 million U.S. Department of Energy’s Industrial Efficiency and Decarbonization Office (IEDO) aimed at helping rapidly decarbonize America’s industrial sector.
For more information, please visit www.atmoszero.energy .
About AtmosZero:
AtmosZero is reimagining the boiler room for a decarbonized future by making decarbonization a product, not a project. By streamlining the process from design to installation, its high-efficiency electrified steam generator, Boiler 2.0, offers the most cost-effective, scalable, and secure solution to decarbonize steam production across industrial manufacturing, district steam, and the built environment. AtmosZero is a spin-out from Colorado State University and proudly based in Fort Collins, CO. For more information, please visit www.atmoszero.energy .
About Engine Ventures
Engine Ventures is a Cambridge, MA -based venture capital firm that invests in the next generation of Tough Tech founders. The firm provides capital, operational expertise, and a powerful academic, commercial, and governmental network to build and scale companies unlocking massive opportunities in climate, human health, and advanced systems. For more information, visit https://engineventures.com/ .
About 2150
2150 is a venture capital firm investing in the sustainable reshaping of the broad urban environment. 2150 backs entrepreneurs working at the forefront of the climate transition and helps scale the companies and technologies with long-term equitable impact across the whole ‘urban stack’, including how cities are built, designed, constructed, and powered, to the way people live, work and are cared for. For more information, visit https://www.2150.vc/ . 2150 is part of Urban Partners, a platform of vision-aligned, differentiated, investment strategies shaped around urban problem solving. For more information, visit https://urban.partners/ .
About Constellation Technology Ventures
Constellation Technology Ventures (CTV) is the venture investing organization within Constellation, the United States’ largest producer of clean, carbon-free energy and a leading supplier of energy products and services to businesses, homes, community aggregations and public sector customers. The mission of CTV is to drive innovation by investing in venture-stage energy technology companies that can provide new solutions to Constellation and its customers. CTV invests in companies exploring innovative energy technologies and business models, building a portfolio that represents a broad range of development stages and technology types.
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atmoszero@teamsilverline.com
Source: AtmosZero
The funding aims to accelerate the commercialization of AtmosZero's Boiler 2.0 technology.
Engine Ventures and 2150 co-led the $21 million Series A round for AtmosZero.
AtmosZero aims to decarbonize industrial steam generation by extracting heat from the air and delivering high-temperature steam with zero carbon emissions.
Constellation Technology Ventures, the strategic venture arm of Constellation Energy Corporation, also joined the funding round.
AtmosZero unveiled a strategic partnership with New Belgium Brewing Company involving a full-scale pilot at New Belgium’s flagship facility.
