Jul 14, 2022
Monolith Raises More Than $300 Million in Latest Funding Round Led by TPG Rise Climate, Decarbonization Partners
The company’s robust list of supporters includes some of the world’s most prominent firms involved with climate and decarbonization investments
Lincoln, Nebraska - July 14, 2022 - Monolith, a global leader in clean hydrogen, carbon black and ammonia, today announced its latest investment round of more than $300 million. Led by TPG Rise Climate, the dedicated climate investing strategy of TPG’s global impact investing platform TPG Rise, with Decarbonization Partners, a partnership between BlackRock and Temasek, as co-lead, the investment marks the latest milestone in the company’s global decarbonization efforts. Additional investment was also received from NextEra Energy Resources, SK, Mitsubishi Heavy Industries America and Azimuth Capital Management. The existing investor group, including Azimuth Capital Management, Cornell Capital and Warburg Pincus will retain their majority ownership stake in the company.
“Global decarbonization by 2050 will require bold steps and transformational partnerships, which we believe we’ve found in working with TPG Rise Climate and Decarbonization Partners,” said Rob Hanson, co-founder and CEO, of Monolith. “We’re eager to continue Monolith’s growth trajectory to support a high energy, low emissions future.”
Monolith cleanly produces essential materials including hydrogen and carbon black by utilizing an innovative and proprietary breakthrough in commercial-scale methane pyrolysis, and was the first U.S. manufacturer to produce clean hydrogen using methane pyrolysis at scale. This innovation attracted worldwide attention, prompting organizations like SK to sign a memorandum of understanding last October with Monolith to produce clean hydrogen and carbon black in South Korea. It also generated a collaboration agreement and letter of intent with The Goodyear Tire & Rubber Company late in 2021.
This latest round of funding will be applied toward further technological development that will offer next generation product capabilities and other corporate-level expansion. It will also enable Monolith’s continued development of a deep backlog of clean hydrogen, ammonia and carbon projects with industry leading partners.
“Our investment in Monolith reflects TPG Rise Climate’s pursuit of companies developing clean molecules and materials, providing sustainable, cost-competitive alternatives to carbon and hydrogen-based products,” said Jonathan Garfinkel, Partner at TPG and senior member of its climate investing team. “Following a decade of research and development, Monolith has developed expansive intellectual property, deployed the methane pyrolysis process in innovative ways, and established itself as a unique solution for an industry that is otherwise incredibly emissions intensive. We look forward to partnering with Monolith to further develop and scale its technology.”
“Producing sustainable hydrogen and carbon black is crucial to decarbonizing the energy and materials industry. We are pleased to support Monolith’s growth and continued expansion,” said Dr. Meghan Sharp, Global Head of Decarbonization Partners. “Monolith has established itself as a technology leader in methane pyrolysis, providing sustainable and low-cost hydrogen and carbon black from natural gas. We see significant opportunity for the company to continue scaling its technology, enabling the decarbonization of a broad range of important end markets.”
The company has attracted the interest of numerous high-profile clean energy investors and recently received conditional approval for a more than $1 billion loan from the Department of Energy Loan Programs Office to expand its production facilities in Nebraska. The DOE loan has not yet closed and is subject to satisfaction of final conditions.
Headquartered in Lincoln, Neb., Monolith was founded in 2012 and currently operates its first commercial-scale production facility in Hallam, Neb., and has offices and R&D facilities in Lincoln, San Carlos, Calif., Denver, Colo., and Kansas City, Kan. Its newest production facility, Olive Creek 2, is expected to be completed in 2026.
J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC acted as placement agents.
Monolith is a next‐generation clean hydrogen and materials company that uses 100% carbon-free energy as part of a proprietary process to convert conventional and renewable natural gas to hydrogen and carbon black in an environmentally advantaged manner. Monolith is backed by Azimuth Capital Management, Cornell Capital, Decarbonization Partners, Imperative Ventures, Mitsubishi Heavy Industries America, NextEra Energy Resources Inc., Perry Creek Capital, SK, TPG Rise Climate and Warburg Pincus. For more information on Monolith, visit www.monolith-corp.com.
About TPG Rise Climate
TPG Rise Climate is the dedicated climate investing strategy of TPG's global impact investing platform TPG Rise. TPG Rise Climate pursues climate-related investments that benefit from the diverse skills of TPG's investing professionals, the strategic relationships developed across TPG's existing portfolio of climate-focused companies, and a global network of executives and advisors. The fund takes a broad-based sector approach to investment types, from growth equity to value-added infrastructure, and focuses on climate solutions in the following thematic areas: clean electrons, clean molecules and materials, and negative emissions. Jim Coulter, TPG Founding Partner and Executive Chairman, serves as Managing Partner of TPG Rise Climate. Former U.S. Treasury Secretary Hank Paulson serves as TPG Rise Climate's Executive Chairman. For more information, please visit www.therisefund.com/tpgriseclimate.
About Decarbonization Partners
Decarbonization Partners is a partnership between Temasek and BlackRock focused on late-stage venture capital and early growth private equity investing in next-generation companies that provide solutions and technologies to help accelerate global efforts to achieve a net zero global economy by 2050. Decarbonization Partners combines Temasek and BlackRock’s expertise in sourcing and underwriting private investments, portfolio and risk management, and sustainable technology and analytics. Decarbonization Partners looks to invest in a wide range of companies that have proven technology but need capital to scale. The partnership targets multiple sectors, including energy, mobility, manufacturing & materials, and the built environment. The partnership reflects BlackRock and Temasek’s shared commitment to help build more sustainable and resilient portfolios, while also contributing to consistent, long-term financial returns that benefit their clients and stakeholders.