Clean energy firm CHAR Tech gets CA$6.6M from ArcelorMittal

 Clean energy firm CHAR Tech gets CA$6.6M from ArcelorMittal

Image courtesy: CHAR Technologies

Toronto-based cleantech company CHAR Technologies is accelerating their vision for a greener future with a CA$6.6M funding from ArcelorMittal for clean energy projects. ArcelorMittal, a global leader in steel and mining, made the strategic investment through its XCarb® Innovation Fund. The funding will be used to accelerate the development and commercialization of CHAR’s technology, which is designed to capture and store carbon dioxide (CO2) from industrial emissions.

Additionally, CHAR inked a Memorandum of Understanding under which ArcelorMittal SA would start buying biocarbon in 2023 from CHAR’s state-of-the-art Thorold, Ontario facility. As part of the agreement, ArcelorMittal will collaborate with CHAR on testing their product, thereby facilitating larger-scale trials.

Under this agreement, CHAR’s biocarbon will be trialed in the Electric Arc Furnace. The goal is a four-year reduction of GHG emissions by 35,000 tonnes. This expands previous testing, begun by CHAR in ArcelorMittal Dofasco’s Blast Furnace in 2021, to larger-scale trials.

The governments of Canada and Ontario called for innovative solutions to decarbonize the steel industry and I’m extremely proud to say that CHAR and ArcelorMittal S.A. have answered that call. Today’s announcement validates years of collaborative research & development with ArcelorMittal S.A., as we strive towards replacing metallurgical coal completely. Our strategic partnership lays the foundation to drive shareholder value as we continue to deliver on our commitment to reduce carbon emissions and promote a greener future.”

Andrew White, CEO of CHAR Technologies

Also read: Government funds Stromcore Energy to boost clean tech sector

ArcelorMittal’s bet on clean energy

CHAR Technologies uses a unique High Temperature Pyrolysis (HTP) system. This system actively transforms organic waste streams like biomass into renewable resources. The company also turns wood waste into renewable natural gas and biocarbon. This process opens up new, sustainable opportunities in waste management and energy production.

ArcelorMittal is a leading advocate for CCS technology. The company has set a goal of reducing its CO2 emissions by 30% by 2030, and CCS is a key part of its emissions reduction strategy. ArcelorMittal’s investment aligns with its commitment to innovative, eco-friendly steel production. The steel giant’s investment in CHAR marks the first investment by ArcelorMittal’s XCarb® Innovation Fund in a Canadian firm.

I am especially pleased that not only are we investing in them, but we are already working alongside them, testing their product at one of our Canadian steel plants. This is one of the advantages of our Innovation Fund and our unique approach. We provide seed capital of course, but we also provide the industrial infrastructure and R&D collaboration that breakthrough technology companies need to bring their product to market.”

Irina Gorbounova, Head of ArcelorMittal’s XCarb® Innovation Fund

The XCarb® Innovation Fund actively promotes breakthrough technologies to reduce carbon emissions. This move signifies ArcelorMittal’s dedication towards a sustainable steel industry future. Also, the companies are planning tests at a Canadian steel plant. They will use ArcelorMittal’s investment, infrastructure, and collaborative research and development efforts.

A boost for CHAR from multiple quarters over the last two years

CHAR Technologies has a successful history of securing funds. They raised CA$6 million and CA$4.89 million through private placements in 2021 and 2022 respectively. These funds have improved CHAR’s financial standing and have fast-tracked their technology commercialization in the clean tech sector. At the same time, CHAR Technologies has been broadening its reach. In December 2022, The company secured CA$12.8 million from the Federal and Ontario governments to expand its renewable energy facility in Thorold, ON. This will be Canada’s largest facility of its kind, lowering greenhouse gas emissions and diverting mill by-products from landfills via high-temperature pyrolysis.

The XCarb® Innovation Fund will use its investment to amplify the impact of the December 2022 investment of CA$12.8 million in CHAR by the Canadian and Ontario governments. The goal is to boost production and spur research and development activities at CHAR’s facility in Thorold, Ontario. The investment will also help CHAR swiftly develop more project sites.

As part of this investment, ArcelorMittal has acquired a 12.48% stake in CHAR Technologies’ Common Shares. This move entitles ArcelorMittal to appoint a director and participate in equity offerings.

ArcelorMittal says it has a presence in 60 countries and primary steelmaking operations in 16 of them. According to the firm, it generated a revenue of CA$106.5 billion (US$79.8 billion) in 2022.

Also read: Canadian cleantech startup Peak Power to get US$35M more funds


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