Two years back, a group of ex-SpaceX engineers applied rocket technology to create a power facility designed to extract carbon dioxide from the air—with a slight caveat. Their approach involved burning plant-based waste to reduce CO2, essentially acting as a “plant-powered rocket engine” for the energy grid.
This week, Arbor Energy announced it secured $55 million in Series A funding, led by Lowercarbon Capital and Voyager Ventures, following a partial change in direction. Instead of relying solely on plant material, its power plant will now also be able to use natural gas, making it more versatile in fuel sources.
This adjustment took place this year as the surge in electricity needs from data centers became evident. While the original design could support AI server operations, its scalability was restricted by the availability of wood and crop residues. In contrast, natural gas is much more accessible.
Arbor intends to continue capturing CO2 emissions from its facility, which utilizes oxy-combustion—a process that converts hydrocarbons into syngas before burning it with pure oxygen. This produces CO2 that is nearly ready for storage without extensive processing.
Thanks to tax incentives, storing captured CO2 will be less costly than releasing it into the air, Arbor spokesperson Patrick Mahoney shared with TechCrunch. He added that the company will not offer its technology to clients who do not plan to capture and either utilize or store the carbon emissions.
However, CO2 emissions are not the only environmental concern when burning natural gas. Methane, the primary ingredient in natural gas, is a greenhouse gas that causes 84 times more warming than carbon dioxide over a two-decade period.
Because of this, even minor leaks in the natural gas supply chain can significantly increase the climate impact of a gas-powered plant. Research indicates that leakage rates as low as 0.2% could make a gas plant’s carbon footprint comparable to that of a coal plant. U.S. government estimates put the average leakage rate for oil and gas at about 1%, while satellite data suggests it could be around 1.6% nationwide.
Arbor stated it is collaborating with natural gas suppliers who are certified for minimal leakage, aiming to reduce the climate impact of each kilowatt of electricity produced to under 100 grams (roughly a quarter pound).
The company also confirmed it is still constructing a biomass-fueled power plant in Louisiana. This project is partially financed by a $41 million agreement with Frontier, an advanced market commitment supported by Stripe, Google, and others. According to the deal, Arbor is required to remove 116,000 tons of CO2 by 2030.
