CarbonQuest and Daroga Power Announce the First Carbon Capture-as-a-Service Project

First-of-its-kind agreement brings distributed carbon capture to market with no upfront cost and guaranteed CO2 reductions for customers

CarbonQuest, a leading distributed carbon capture technology provider, and Daroga Power ("Daroga"), a leading developer of power projects in the U.S., today announced their first joint carbon capture-as-a-service financing project in North America, with a goal to offer such service to customers across a variety of sectors ranging from food and beverage operations, commercial and industrial facilities, and utility infrastructure. This initiative follows the 2023 partnership announcement, which aims to bring Sustainable CO2 to North American commercial, industrial, utility, and other types of emitters. This project and future joint carbon capture-as-a-service projects will be owned and operated by C2Zero, a portfolio company of SER Capital Partners, in partnership with Daroga Power.

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CarbonQuest and Daroga’s first financed project is at a beverage-industry plant in Washington state. Under this model, the plant enters into a multi-year agreement with Daroga to finance CarbonQuest’s distributed carbon capture system at no upfront cost for the design, installation, and operational maintenance of the carbon capture system. This structure provides lower cost, resilient, and sustainable CO2, ensuring a reliable supply of liquid CO2 for its operations. This agreement also guarantees a minimum amount of captured CO2 for the plant each year. CarbonQuest’s Carbon Management Software (CMS) tracks in real-time the amount of CO2 captured, liquified, and sold for utilization to provide assurance and transparency.

This first-of-its-kind financing agreement is a significant milestone for distributed carbon capture, as it provides flexibility to emitters that cannot pay for upfront carbon emission controls, while securing a steady income stream from CO2 utilization. CarbonQuest and Daroga Power are already building on this agreement with a robust pipeline of similarly financed projects.

"Customers in many sectors are under pressure to reduce emissions yet are concerned about paying for hardware-intensive projects with capital budgets," said Shane Johnson, CEO of CarbonQuest. "Carbon capture-as-a-service relieves that worry while providing stable and guaranteed emission reductions over a set timeframe. Daroga Power is the right financial partner at the right time. They understand how to evaluate power generation and carbon capture investments and turn them into valuable investments that scale. We are looking forward to many more opportunities together."

"Daroga Power has developed and financed numerous distributed power projects globally, and carbon capture-as-a-service is a natural extension of our existing capabilities," said Ory Moussaieff, Co-Founder of Daroga Power. "With the adaptation of CarbonQuest’s modular distributed system, we are now able to transform an overlooked resource into a valuable asset, generating financial returns with positive environmental impact."

About CarbonQuest

CarbonQuest is advancing decarbonization with a modular, accessible solution that captures CO2 from small- and medium-scale emitters before it is emitted into the atmosphere. The captured CO2 is then liquified, and used onsite and/or transported to businesses that use carbon in their production processes or mineralized for permanent removal. By introducing its technology and Sustainable CO2™ into the market, CarbonQuest enables its customers to support a circular economy or carbon removal, while meeting ESG and net-zero goals with a cost-effective, turnkey product. Learn more at www.carbonquest.com

About Daroga Power

Launched in 2015, Daroga Power is a New York-based clean energy infrastructure firm focused on the development and disciplined management of strategically innovative and socially responsible energy projects throughout North America. Applying the discipline of both a strong financial and fast-track development background, Daroga Power is one of the few companies able to privately structure & finance deals to deploy distributed generation portfolios. With a successful track record and deep background, Daroga Power is rapidly becoming a leader in the shift to distributed generation that is reshaping the relationship between local utilities and their customers. Learn more at www.darogapower.com

About SER Capital Partners

SER Capital Partners is a middle-market private equity firm dedicated to investing in North American sustainable industrial, environmental, and renewable businesses. Its team members have amassed decades of experience in its targeted sectors as private equity investors and senior executives at both private and public businesses. The firm’s strategy is to buyout and buildout attractive investments underpinned by critical assets while also authentically measuring and improving key sustainability metrics. More is available at www.sercapitalpartners.com