AAA OGCI fuels first three deals

OGCI fuels first three deals

Oil and Gas Climate Initiative (OGCI), the corporate-backed initiative focused on low carbon technologies, announced the first three investments made by its $1bn OGCI Climate Investments fund on Friday.

OGCI launched its $1bn fund in November 2016 with a $100m commitment from each of its members: BP, China National Petroleum Corporation, Eni, Pemex, Reliance Industries, Repsol, Royal Dutch Shell, Saudi Aramco, Statoil and Total.

The fund has invested an undisclosed sum in Solidia Technologies, a US-based cement producer that uses carbon dioxide instead of water to harden concrete. The technology is expected to reduce the carbon footprint of concrete by up to 70% and water consumption by up to 80%.

Solidia had previously raised an undisclosed amount from Aliad, the corporate venturing division of industrial gases producer Air Liquide, in 2016.

The company had secured approximately $78m in funding when it added an undisclosed sum in a 2014 round featuring building materials supplier Lafarge, chemicals producer BASF and oil and gas companies Total and BP, the latter through its Total Energy Ventures unit.

Venture capital firms Kleiner Perkins Caufield & Byers and Bright Capital also contributed to the 2014 round.

OGCI has also participated in US-based compression ignition engine developer Achates Power’s series D round, helping to close it at $29.8m. Achates Power has not named the other investors in the round.

Founded in 2004, Achates is working on more efficient, cleaner combustion engines. It has raised more $136m in funding from investors including Sequoia Capital, RockPort Capital Partners, Madrone Capital Partners, InterWest Partners and Triangle Peak Partners.

The final recipient of OGCI funding is an unnamed startup that is focused on developing a gas power plant with carbon capture and storage capabilities. OGCI will assist the company with the development of a commercially viable model and basic engineering design.

Pratima Rangarajan, chief executive of OGCI Climate Investments, said: “The three investments we are announcing today have the potential to make a meaningful impact on greenhouse gas emissions.

“We look forward to working with these innovative teams to help them achieve commercial success on a global scale.”

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