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Suncor (SU) Funds Svante to Aid Carbon Capture Commercialization

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Suncor Energy (SU - Free Report) has backed carbon capture technology company Svante's decarbonization and hydrogen development plans, joining a host of other investors in the company's new equity raising.

Both companies signed an equity-financing agreement to provide Svante with extra growth capital to advance the commercialization of Svante's innovative second-generation CO2 capture technology for the decarbonization of industrial emissions and hydrogen production in North America.

According to Svante, the company's technology absorbs CO2 from flue gas, concentrates it, and then releases it for safe storage or industrial usage.

Suncor and a number of investors of family offices have invested $25 million in equity funding, taking Svante's Series D financing to $100 million. Per the announcement, this marks the world's biggest single private investment in point source carbon-capture technology.

Since its inception in 2007, Svante has managed to gather more than $175 million in total funding to advance and commercialize its revolutionary solid sorbent technology at half the price of conventional engineered solutions.

Mark Little, president & CEO of Suncor, sees carbon capture as a competitive technology field for Suncor as it wants to lower greenhouse gas emissions in its core business and generate blue hydrogen as an energy product.He added, “An investment in Svante is expected to support the acceleration of commercial scale deployment of a technology that has the potential to dramatically reduce the cost associated with carbon capture. We are excited to become both an investor in and a collaborative partner with the company.”

Company Profile

Founded in 1917, Suncor is Canada's premier integrated energy company. Its operations include oil sand development and upgrade, conventional and offshore crude oil and gas production, and petroleum refining and product marketing. Suncor is one of the largest owners of oil sands in the world.

Zacks Rank & Other Key Picks

Suncor currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked players in the energy space are Matador Resources Company (MTDR - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Denbury Inc. (DEN - Free Report) , each presently flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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