Heirloom Raises $150 Million Series B to Rapidly Scale Commercial Direct Air Capture

BRISBANE, Calif.--(BUSINESS WIRE)--Dec 4, 2024--

Heirloom, America’s leading Direct Air Capture (DAC) technology provider, has raised $150 million in Series B funding. The round was co-led by Future Positive, and Lowercarbon Capital - which also invested in Heirloom’s Series A. A range of new industrial investors, including Japan Airlines Co., Ltd., Mitsubishi Corporation (Americas), Mitsui & Co., Ltd., and Siemens Financial Services, representing difficult to decarbonize sectors of the economy – automotive, shipping, aviation, and advanced manufacturing — also participated. This is a strong vote of confidence in Heirloom’s ability to be a leading pathway to net zero. The funding will be used to continue to drive down the cost of the technology, develop additional projects and provide the funding needed to subsequently access infrastructure capital.

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New investors in Series B include: Future Positive, H&M Group, Japan Airlines Co., Ltd., Mitsubishi Corporation (Americas), Mitsui & Co., Ltd., MOL Switch LLC, Quantum Innovation Fund, and Siemens Financial Services among others.

Repeat investors include leading climate and carbon removal investors like Ahren Innovation Capital, Breakthrough Energy Ventures, Carbon Direct Capital, Lowercarbon Capital, and MCJ Collective.

“We’re honored to receive this vote of confidence from new and repeat investors alike,” said Shashank Samala, CEO of Heirloom. “We believe DAC is all about cost, cost, and cost – and that it will only scale to make a meaningful difference on climate change if it is affordable. This is precisely why people are investing in Heirloom. Through our real-world deployments and continued technological advancements, we are demonstrating not only that Heirloom has a clear trajectory to the lowest-cost DAC solution – but that we are executing on that vision and delivering results.”

The breadth of participation in Heirloom’s Series B speaks to the company’s industry leadership, technical progress and deployment momentum.

Since its founding in 2020, Heirloom has progressed rapidly to become one of the world’s leading DAC companies. Heirloom is part of the team building Project Cypress — a Department of Energy supported DAC Hub, which is eligible for up to $600 million in government funding, and which will bring one million tons of yearly CO2 removal capacity to Louisiana and will create nearly 1,000 new jobs. Heirloom has received strong bi-partisan U.S. political support, as demonstrated by their recently unveiled plans for a number of Louisiana facilities, including an initial 17,000 ton facility set to be operational in 2026. Late last year, Heirloom began operating North America’s first commercial DAC facility in Tracy, California, shortly after signing one of the largest CO2 removal deals to date with Microsoft. The company has also signed deals to provide carbon removal to Stripe, Meta, Shopify, JPMorgan, McKinsey, Workday, H&M Group, Autodesk, and others.

Heirloom’s technology enhances the power of limestone – the world’s second most abundant, and one of the cheapest, minerals – to capture CO2 directly from the air. The Heirloom process starts with natural limestone, nearly 50% of which is CO2. By extracting this CO2 from the limestone and adding water, the Heirloom process creates a material that is thirsty for CO2 so it can return to a natural limestone state. This material acts like a sponge, pulling CO2 from the atmosphere. Heirloom’s technology accelerates this process, reducing the time it takes to absorb CO2 in nature from years to just three days. Once the CO2 is absorbed, it is extracted from the limestone material using a renewable energy-powered kiln and stored permanently underground.

JP Morgan Securities LLC served as the lead placement agent and HSBC served as the co-placement agent to Heirloom on the raise.

To learn more about Heirloom, visit our website:www.heirloomcarbon.com

Heirloom's Direct Air Capture (DAC) facility in Tracy, California. (Photo: Business Wire)

MINNEAPOLIS--(BUSINESS WIRE)--Dec 4, 2024--

Yukon Partners ("Yukon"), a provider of junior capital for middle market private equity transactions, is pleased to announce the promotion of Troy Mertins to Vice President.

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“Troy has been a strong contributor to the success of Yukon Partners. We are fortunate to have him as part of the Yukon organization,” said David Sampair, Partner. “This promotion is recognition for Troy’s acumen, diligence, and passion as an investment professional, and we look forward to his continued growth within the firm.”

Mr. Mertins joined Yukon Partners in 2022. Previously Troy worked as a principal at Northwestern Mutual Capital, where he analyzed and executed junior capital investments supporting private equity transactions. Before joining Northwestern Mutual Capital, he was an associate at Stone Arch Capital, a lower middle market private equity firm, where he evaluated, executed, and supported investments across a number of industries. Before joining Stone Arch Capital, Troy worked in analyst and associate roles in corporate development at Optum, where he supported teams across Optum’s operating segments on M&A transactions.

About Yukon Partners

Yukon Partners is an independent and unaffiliated junior capital provider, primarily serving middle market private equity sponsor led business transactions in the U.S. and Canada. The transactions in which Yukon invests include buyouts, growth and platform strategies, recapitalizations, mergers/acquisitions, and public-to-private buyouts. Yukon typically invests up to $75 million per transaction and currently manages $2.6 billion across five funds. Yukon Partners has offices in Minneapolis, Boston, and West Palm Beach. For more information, please visit www.yukonpartners.com.

Troy Mertins, Vice President (Photo: Business Wire)