Heliogen, the US-based renewable energy technology developer backed by steel and mining group ArcelorMittal and energy utility Edison International, agreed yesterday to a reverse merger with special purpose acquisition company Athena Technology Acquisition Corp.
The combined business will be valued at $2bn and will retain Athena’s listing on the New York Stock Exchange, taken when Athena raised $250m in an initial public offering in March this year.
The deal will include a $165m private investment in public equity transaction backed by XCarb Innovation Fund, the corporate venturing vehicle for steel manufacturer ArcelorMittal, as well as investment bank Morgan Stanley’s Counterpoint Global unit, Salient Partners and Saba Capital.
Heliogen’s artificial intelligence-equipped concentrated solar power (CSP) technology consists of computer-controlled mirrors that reflect sunlight on to receivers to produce temperatures as high as 1,000 degrees celsius.
The resulting heat can be used for purposes such as power generation and hydrogen fuel production as well as industrial manufacturing processes.
The company will use the proceeds of the transaction to expand manufacturing for its proprietary technology, in addition to funding research and development activities and global project development.
Heliogen founder Bill Gross will serve as chief executive of the merged business following the close of the deal. Athena CEO Phyllis Newhouse will be the first woman of colour in the US to take a company public through a special purpose acquisition company, and will join Heliogen’s board of directors.
The company had raised at least $108m of funding as of last month, when it received $25m in a series A-2 round led by Prime Movers Lab alongside an $83m bridge extension featuring ArcelorMittal, Edison International, Ocgrow Ventures, AT Gekko, 8090 Partners, Gordon Crawford and Rashaun Williams.
Heliogen’s earlier investors include Nant Capital, Revolution’s The Rise of the Rest Seed Fund, Neotribe Ventures and Bill Gates.