Monday, April 15, 2024

The CDR Funding Panorama. As Occidental buys Carbon Engineering… | by Anton Root | AlliedOffsets | Aug, 2023

The Carbon Engineering acquisition by Occidental is one more signal that the carbon dioxide elimination (CDR) trade is maturing.

And whereas the trade is comparatively new, tons of of thousands and thousands of {dollars} have been poured into CDR corporations, suggesting extra exits are on the horizon.

As a part of our revamped CDR choices, we’ve collected knowledge on over 550 corporations around the globe that want to seize, retailer, or make the most of carbon ultimately — you may try the public dashboard right here.

Behind the scenes, we’ve additionally been trying into knowledge on CDR traders. Up to now, we’ve collected info on:

  • 177 traders
  • 112 funded corporations
  • 367 investments
  • $4b in funding exercise tracked

Under are some abstract statistics that may assist to place the Carbon Engineering acquisition in wider context.

We see bigger rounds than common in CDR. The hole widens as corporations show out their fashions and get additional into the funding rounds: that is seemingly on account of CDR being an inherently {hardware} sector, which means economies of scale are tougher to optimize than in software program.

We’ve additionally collected knowledge on over 2,000 patents which are held by corporations participating in CDR. Whereas the outcomes are nonetheless preliminary (and liable to be influenced by outliers, given the comparatively small pattern dimension) we see a reasonably robust optimistic correlation of 0.57 between variety of patents held and the sum of money raised.

This is sensible — as corporations are higher in a position to exhibit to traders their aggressive benefit, they turn into extra engaging to potential funders. Carbon Engineering, by our depend, holds 13 patents.

We’ll present extra evaluation on CDR funding within the coming weeks, keep tuned!

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