Crusoe Energy Systems Raises USD 70 Million in Ewuity and Project Funding

By StartUp City | Monday, December 09, 2019

Crusoe uses natural gas that is otherwise burnt in the air like a flare and instead powers modular, mobile computing systems designed specifically for the oilfield. Apart from reducing waste, this solution also helps energy companies to reduce emissions significantly. Crusoe DFM modules have already reduced flaring for public and private energy producers, and have operated with high reliability across multiple states through harsh winters and blistering summer heat waves.

Fremont, CA: Technology-driven flare mitigation provider Crusoe Energy Systems Inc. raised USD 70 million in new capital, targeted towards the rapid expansion of Crusoe's proprietary Digital Flare Mitigation(DFM) technology and services. The raised USD 70 million includes USD 30 million raised through equity funding and USD 40 million raised through project funding. The equity funding round was led by existing investor Bain Capital Ventures and new investor The KCK Group with additional participation from Founders Fund, Winklevoss Capital, and Polychain Capital. New York-based credit fund Upper 90 led the project funding round raising USD 40 million. As part of the deal, Bain Capital Ventures and KCK Group will join the Crusoe board alongside the company's co-founders.

Crusoe applies technology-empowered solutions to the modern oil industry's most significant environmental challenges, which is the flaring of natural gas. The company uses natural gas that is otherwise burnt in the air like a flare and instead powers modular, mobile computing systems designed specifically for the oilfield. Apart from reducing waste, this solution also helps energy companies to reduce emissions significantly. Crusoe DFM modules have already reduced flaring for public and private energy producers, and have operated with high reliability across multiple states through harsh winters and blistering summer heatwaves.Most Promising Clean Tech Startups

"Today's announcement paves the way for Crusoe to deliver the energy industry with a scalable solution for the natural gas flaring challenge and to execute our vision of a low-cost distributed computing cloud," said Chase Lochmiller, CEO and co-founder of Crusoe. "The Crusoe team could not ask for a more supportive group of investors, and we are excited to deploy this new capital into our rapid scale-up of our Digital Flare Mitigation technology throughout North America."

The company has also agreed to the deployment of up to 40 DFM systems through the first half of 2020 with a view towards further growth. Crusoe systems are expandable from tens of thousands of cubic feet per day up to multiple millions of cubic feet per day, meeting the challenges of today's remote oilfield operations.

"Crusoe has demonstrated its capability for high-caliber, safe, and efficient operations since we led the team's seed financing in early 2019," said Stefan Cohen, principal at Bain Capital Ventures. "Over this time, we've gained confidence in Chase, Cully, and the growing Crusoe team, and strongly believe in their ability to tackle the energy industry's flaring dilemma in this next stage of company growth. There is now a proven and scalable alternative to flaring, and Crusoe's trajectory is also poised to produce exciting new cloud computing resources for the technology industry."

See also: Top Energy Tech Solution Companies

Weekly Brief