Citroniq Chemicals LLC, a pioneer in producing carbon-negative materials, has successfully closed a $12 million Series A financing round. The funding was spearheaded by a major multinational energy technology firm renowned for providing large rotating equipment across the oil & gas, energy, and industrial sectors globally. Additional backing came from Lummus Technology Ventures and a strategic partnership with the State of Nebraska.
This pivotal investment will propel Citroniq’s efforts to develop its inaugural manufacturing facility in Nebraska, marking a significant step in its mission to reshape the plastics industry. The new plant will be the world’s largest decarbonization platform, with the capacity to capture and prevent 2 million metric tons of greenhouse gas (GHG) emissions annually.
Leon de Bruyn, CEO of Lummus Technology, expressed enthusiasm about the investment, noting, “Our partnership with Citroniq has already made remarkable strides in scaling and commercializing bio-polypropylene production. This latest investment strengthens our collaborative efforts to reduce carbon emissions in the plastics sector, which has historically relied heavily on fossil fuels.”
Mel Badheka, President and Co-Founder of Citroniq, highlighted the significance of the funding, stating, “We are thrilled to have the support of our strategic investors as we embark on this transformative journey. Our goal is to decarbonize the traditionally fossil-based plastics industry, and this investment marks a crucial milestone in achieving that vision.”
Kelly Knopp, CEO and Co-Founder of Citroniq, emphasized the broader impact of the funding, “This Series A investment is a vital first step toward establishing multiple biomanufacturing hubs. By converting local ethanol into valuable bioplastics, we aim to boost Nebraska’s bioeconomy and advance our engineering efforts to make the first plant a reality. Our innovative carbon-negative resin represents a significant opportunity for the plastics industry to meet its 2030 goals and long-term net-zero targets.”
The legal team representing the transaction was led by Doug Getten, Michael Portillo, and Leslie Lord from Baker Botts, LLP, while Young America Capital provided financial advisory services through Peter Perri and Vince Palmieri.
Editorial Opinion:
Citroniq Chemicals is emerging as a trailblazer in the fight against climate change, bringing groundbreaking technology to the forefront of the plastics industry. The company’s commitment to producing carbon-negative materials represents a significant leap towards sustainable manufacturing. By transforming locally sourced ethanol into bioplastics, Citroniq not only contributes to reducing GHG emissions but also stimulates economic growth in Nebraska.
The scale and ambition of Citroniq’s project highlight its potential to drive substantial environmental benefits while setting a new standard in the industry. As global attention increasingly shifts towards sustainability, Citroniq’s approach aligns perfectly with the urgent need for innovative solutions in material science. Their efforts could very well position them as a key player in the transition to a greener economy, influencing both industry practices and policy development.
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