HAYWARD, CA — Alphabet Energy, a global leader in thermoelectrics for waste heat to power, has closed a $23.5 million Series C round of financing. Schlumberger, a new investor from the oil and gas industry, led the round with participation from GM Ventures and Osceola Capital Management, LLC. Existing investors TPG, Claremont Creek Ventures and the California Clean Energy Angel Fund also participated.
The new capital will be used to scale Alphabet Energy’s production for the oil and gas and automotive industries, both under intense regulatory pressure to curb emissions. For example, the U.S. Environmental Protection Agency (EPA) recently announced new regulations to limit methane emissions in the oil and gas industry. Globally, the World Bank’s “Zero Routine Flaring by 2030 Initiative,” which aims to end routine gas flaring at global oil production sites, has garnered support from more than 45 oil companies, governments and others. Alphabet Energy’s Power Generating Combustor (PGC) for oil and gas flares has seen strong commercial traction in helping oil and gas operators mitigate permitting risk and meet remote power needs.
“We are very impressed by Alphabet Energy’s waste-heat-to-power solutions and the commercial traction that has led to key companies from the oil and gas and automotive industries participating in the financing,” said Michael Babb, managing partner, Osceola Capital Management.
To keep pace with oil and gas industry demand for remote power generation solutions, Alphabet Energy has opened a sales and support office in Houston.
“The response to our new product, the PGC, which helps expedite or eliminate permitting processes by transforming gas flares or combustors into power generators, has been outstanding, and this new capital and involvement from strategic investors allows us to meet demand and speed our growth,” said Matt Scullin, CEO, Alphabet Energy. “The PGC meets the immediate needs of the oil and gas industry, even amid the downturn in oil prices, because it helps increase production and topline revenue. It’s an exciting time for thermoelectric waste heat to power technologies and global leaders from the from oil and gas and automotive industries agree.”