Parallel Carbon: Making clean hydrogen and Direct Air Capture (DAC) affordable together
By Alicia Hernández
Pictures of cities covered in smoke and haze have been all over the news lately, flooding our feeds with bad air quality alerts in the U.S. and all over the world. While these news are barely the tip of the iceberg in the many climate change challenges that we are facing, we continue to confirm that now, more than ever, we need ambitious solutions to reach net-zero emissions by 2050 to limit global warming to below 2 degrees celsius (IPCC, 2018). At Rumbo Ventures we can’t help but get very excited and inspired when we come across a new climate technology that, if supported, can move the needle in the quest to decarbonize our planet.. And in total honesty, the excitement for us goes through the roof when the technology was co-created by a Latin American scientist #WomenInSTEM (but more on that later…).
I will not keep you wondering who we are talking about. We are proud investors of Parallel Carbon, a company that is revolutionizing one of the most promising climate technologies (IEA, 2022): Direct Air Capture (DAC). This startup is at the forefront of developing technologies that make carbon removal more affordable while simultaneously producing green hydrogen, which has been “hailed as the Swiss army knife of decarbonization for the steelmaking, chemical manufacturing and trucking industries” (Silicon Valley Bank, 2023). Parallel Carbon recognizes the potential of this dynamic duo: combining DAC with green hydrogen production to drive the decarbonization of the economy in an emissions-free process.
You might be thinking “OK, but how does this really work?” In easy words, DAC technologies are designed to pull CO2 straight out of the air. Once the CO2 is captured, it can be stored securely in deep underground locations, effectively removing it from the atmosphere. This process is known as carbon dioxide removal (CDR). The great differential for Parallel Carbon is its innovative and unique direct air carbon capture system. By leveraging the power of ancient geochemistry and modern electrochemistry, this visionary process enables simultaneous direct air capture and water electrolysis. The synergistic approach of Parallel Carbon yields two significant outputs: high-quality carbon removal credits and green hydrogen. Let me emphasize this. Parallel Carbon has solved two significant issues at once: creating reliable CDRs while also supplying clean hydrogen, two outputs for which demand is only growing.
These outputs are incredibly valuable for net zero goals. As we know, carbon removal credits already play a crucial role in combating climate change, particularly when their origins are thoroughly verified. Green hydrogen, produced through renewable sources, serves as a clean and versatile energy carrier that can be utilized across multiple sectors, including transportation, industry, and power generation, leading to substantial reductions in greenhouse gas emissions. Parallel Carbon’s scalable solution for green hydrogen production empowers the wider adoption of overall clean energy technologies, setting an example for innovative and creative solutions in the climate change field.
Now, let me get back to who are the brilliant minds behind this revolutionary technology. Parallel Carbon was co-founded by Aránzazu Carmona and Ryan Anderson, seasoned experts in the fields of materials science and electrochemical engineering. When we first heard of Parallel Carbon we were amazed by its traction record: Its one electrolyzer, two product system, improves IRRs 20–35% over traditional green hydrogen projects. This traction has also been recognized by investors such as Deep Science Ventures and Counteract.
This investment was a no-brainer for Rumbo Ventures given how organically it fits our thesis, especially our firm commitment to push exceptional Latin American talent. We were inspired by how Aránzazu has played a key role in developing this technology. A startup with a Latin American PhD #WomanInStem co-founder, with a brilliant team, a profitable business, and a promising climate technology? Yes, please! We are convinced that there needs to be increased support for Latin American talent around the world, and we are also conscious about the investment gender gap. Data shows that women founders have received just 6.9% of venture dollars in climate tech in Q1, according to Crunchbase, which is down from 8.9% in 2022 (TechCrunch+, 2023). For this reason, we are cheering for Aránzazu , Parallel Carbon, and all the amazing work they are doing.
With its rate of positive environmental impact, financial viability, and unwavering commitment to scalability, Parallel Carbon expects to remove atmospheric CO2 at the gigaton scale in the coming decades. This company is already paving the way for a world less dependent on fossil fuels. At Rumbo, we are inspired by the founders’ visionary efforts to create a truly transformative and innovative solution in the climate-tech industry. Please join us in supporting Parallel Carbon as they make clean hydrogen and Direct Air Capture (DAC) affordable together.
Sources
IEA (2022), Direct Air Capture, IEA, Paris https://www.iea.org/reports/direct-air-capture, License: CC BY 4.0
IPCC, 2018: Summary for Policymakers. In: Global Warming of 1.5°C. An IPCC Special Report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty [Masson-Delmotte, V., P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R. Shukla, A. Pirani, W. Moufouma-Okia, C. Péan, R. Pidcock, S. Connors, J.B.R. Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, T. Maycock, M. Tignor, and T. Waterfield (eds.)]. Cambridge University Press, Cambridge, UK and New York, NY, USA, pp. 3–24, doi:10.1017/9781009157940.001.
Silicon Valley Bank, 2023. The Future of Climate Tech: A look at the technologies driving a sustainable future. Retrieved from: https://www.svb.com/globalassets/trendsandinsights/reports/the-future-of-climate-tech-2023.pdf
“VC funding of women climate tech founders is abysmal. Here’s how it could improve”. Retrieved from: https://techcrunch.com/2023/05/15/climate-tech-women-vc-funding/