Local climate-tech firm Alcom Carbon Markets closes Pre-Series A round led by agri-food investor Capital Code

ACM operates the first internationally accredited rice husk-based combined heat and biochar facility in the Philippines.

Singapore-based climate tech company Alcom Carbon Markets (ACM) has raised an undisclosed amount in Pre-Series A fundraising, bringing total investment into the carbon project developer close to US$5 million ($6.73 million).

According to a Feb 9 announcement, the funding round was led by Singapore-based agri-food and climate-focused investment firm Capital Code.

Also participating in this round are investment companies “backed by a London-based veteran trader” and a “former C-suite tech executive in Singapore”, says ACM.

Founded in 2021, ACM operates the first internationally accredited rice husk-based combined heat and biochar facility in the Philippines. Named NuevaChar, the facility is located in Palayan City, Nueva Ecija, one of the least populated cities in the country.

Biochar is a high-carbon form of charcoal made from organic wastes and residues, such as wood chips, macadamia nutshell, coconut shell, miscanthus, rice husks, straw, bamboo and manure.

ACM is replacing “heavy metal-contaminated ash” with rice husks to provide the local government with free heat for grain drying while creating biochar in the process.

ACM says the fresh funds will help it roll out additional biochar projects in the Philippines, India and other countries and develop other climate technologies from syngas produced during the pyrolysis process.

Biochar is produced by heating biomass residues at high temperatures under an “oxygen-limited environment” called pyrolysis.

Syngas, or synthesis gas, is a mixture of carbon monoxide and hydrogen. The main application of produced syngas is typically the generation of power and heat. This is performed in stand-alone combined heat and power (CHP) plants or through co-firing of the product gas in large-scale power plants.

According to ACM, future plans include extracting hydrogen and Gas to Liquids (GTL) to produce ethanol for sustainable aviation fuel (SAF), and green methanol for low-carbon marine fuels. ACM is working with Swiss certification body Gold Standard to develop the world’s first voluntary decarbonisation methodology via fuel switching for the maritime sector.

Harsh Rajpa, founding partner of Capital Code, says: “After the successful operations of its biochar CHP plants in the Philippines, ACM is set to develop multiple projects in Southeast Asia, India and beyond. We are excited to support ACM to help achieve their ambitious climate goals.”

Rajpal, who founded Capital Code in 2019, was previously head of strategic investments (M&A) at Singapore-listed Olam International Vc2 between 2010 and 2017.

Prateek Tiwari, founder and chief executive officer of ACM, says: “This funding will further enable ACM to achieve its goal of 1 million metric tonnes [of] CO2 removals by 2030 through biochar. While scaling up biochar projects is important, we focus on developing quality projects, delivering maximum impact to address serious challenges such as climate change, food security and clean energy that the world faces today”.

ACM is the carbon project development arm of Alcom, a local energy trading company involved in the physical trade of gasoil, base oils and blending components for fuel oil, bunkers, gasoil and gasoline. Alcom also trades first- and second-generation biofuels.

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