The hydrogen startup C-Zero has secured $5 million of an $18 million funding round, as indicated by an SEC filing.
C-Zero is working on a method to extract hydrogen from methane without releasing carbon dioxide. This hydrogen can be utilized across various industries such as ammonia and petrochemical production, with potential applications in transportation and steel production. The byproduct, solid carbon waste, could be repurposed in products like asphalt and lithium-ion batteries.
In 2022, C-Zero completed a $34 million funding round, valuing the company at $124 million post-money, according to PitchBook data. The lower target for the current round shows prudent planning following the significant funds raised during the pandemic.
The company did not respond immediately to a request for comment.
Employing a process called methane pyrolysis, C-Zero’s reactor utilizes a unique catalyst to separate hydrogen from methane molecules.
By utilizing easily available natural gas as input, C-Zero aims to produce emission-free hydrogen at a lower cost compared to other green hydrogen startups that rely on expensive electrolyzers powered by renewable energy sources like wind and solar.
Utilizing existing natural gas infrastructure also makes methane pyrolysis a suitable option for petrochemical plants, as they already utilize natural gas and require substantial amounts of hydrogen for their operations.
The opportunity to provide cost-effective, zero-emission hydrogen to established clients has led to a surge of startup activity in the sector, with several companies, such as Modern Hydrogen, Molten Industries, and ReCarbon, also adopting methane pyrolysis in their processes.
