Clean fuel startup Utility Global has raised $53 million in a Series C funding round to advance its innovative technology for decarbonizing hard-to-abate industries, such as steel production. The Houston-based company, founded in 2018, specializes in processing industrial waste gases into clean fuels, including hydrogen, without the use of electricity. This breakthrough technology, called eXERO, leverages the inherent energy in off-gases, providing a more efficient and eco-friendly solution compared to traditional energy-intensive methods.

Utility Global's technology addresses a significant challenge for the clean energy sector: reducing reliance on renewable electricity, which is often in high demand. By converting hydrogen and syngas from industrial off-gases, the eXERO platform offers a scalable, cost-effective solution to decarbonize industries with substantial greenhouse gas emissions. The company recently demonstrated its success by producing hydrogen from blast furnace off-gases at a commercial steel facility.

The funding round was led by the OPG Pension Plan and included major players like ArcelorMittal through its XCarb Innovation Fund, as well as Ara Partners and Aramco Ventures. Utility Global plans to use the capital to accelerate commercialization and finalize the design of its eXERO units, targeting deployment by 2026.

ArcelorMittal and Utility Global also announced a collaboration to develop commercial facilities at the steel giant's integrated plants. According to Irina Gorbounova, Head of the ArcelorMittal XCarb Innovation Fund, the eXERO technology platform is seen as both scalable and cost-effective, positioning it as a strong contender for industry-wide decarbonization efforts.

Utility Global CEO Claus Nussgruber highlighted the demand for onsite decarbonization solutions that extend the life of existing assets while delivering substantial emissions reductions. With the backing of high-profile investors and proven technology, Utility Global is poised to play a key role in decarbonizing heavy industries in the coming years.