Decarbonization expert Airex Energy completes a $38 million funding round led by Cycle Capital

The Fonds de solidarité FTQ joins as an investor

Montreal, March 10, 2023 – Airex Energy, a Canadian-based company that develops and delivers world-class decarbonization solutions, recently concluded a Series B funding round valued at C$38 million. Led by Cycle Capital, the most recent round welcomed the FTQ Fonds de solidarité, which joined the syndicate of existing investors, including Investissement Québec; Desjardins-Innovatech; Export, Development Canada (EDC); and Cycle Capital.

An innovative and fast-growing leader, Airex Energy produces biochar, biocarbon and biocoal, each of which has multiple applications contributing to the fight against climate change. Among the applications eagerly sought by major industrial players, biochar sequesters carbon in the ground and in other materials, biocarbon is used to produce green steel and other metals and biocoal is an environmentally friendly fuel and coal replacement. Thanks to this funding round, Airex Energy will be fast-tracking its growth initiatives, including a Quebec biochar project tying in with its partnership with Suez, which aims to significantly boost biochar production in Europe and North America by 2035. Other initiatives include the conclusion of agreements in Quebec’s biocarbon and Asia’s biocoal sector, as well as continuous improvements in the underlying technology, already regarded as the most advanced and the most environmentally friendly in the world.
“We are proud to count on the support of recognized local investors. Their backing is a wonderful acknowledgment of our shared sustainable development ambitions, as well as a sign of confidence,” said Michel Gagnon, CEO of Airex Energy. “Thanks to our one-of-a-kind technology, we are poised to become a leader in the area of innovative and environmentally friendly decarbonization solutions both inside and outside Canada.”
“From the outset, we have been convinced of decarbonization’s potential, particularly in polluting industries, as well as of Airex’s patented technology,” noted Andrée-Lise Méthot, Founder and Managing Partner of Cycle Capital. “As we get ready to launch the large-scale commercialization of biochar and biocoal, we look forward to contributing to Airex’s growth, alongside Airex’s team, strategic partners such as Suez and renowned investors like the Fonds de solidarité FTQ, Investissement Québec and Desjardins.”
Janie C. Béïque, President and CEO of the Fonds de solidarité FTQ, added: “Delivering effective solutions aimed at reducing GHG emissions and eliminating carbon in the air, Airex Energy is an innovative company in its sector. Quebec needs to focus on making an efficient environmental transition to ensure the well-being of future generations. The Fonds seeks to contribute to this transition, and our investment in Airex represents another step toward our ambitious goal of holding $12 billion in sustainable development assets.”

About Airex Energy

An innovative leader, Airex Energy develops and delivers world-class decarbonization solutions having the capacity to significantly reduce GHG emissions. Thanks to CarbonFX™, its proprietary technology, Airex Energy transforms biomass into high-value-added environmentally friendly products such as biochar, biocoal and biocarbon. Since 2016, the company has operated the first and only industrial production facility in Canada specializing in biocoal. The company now exports its products around the world, in particular to the US, Europe and Asia.

About Cycle Capital

Cycle Capital is a leading private ClimateTech venture capital investment platform with offices in North America, Europe and Asia. Cycle Capital invests in growing and commercializing innovative climatetech companies that develop solutions to contribute towards climate change mitigation by enabling a net-zero transition, reducing greenhouse gas emissions, and optimizing resources and processes. Cycle Capital is the founder of Cycle Momentum Accelerator + Innovation Engine.

About the Fonds de solidarité FTQ

The Fonds de solidarité FTQ invests to build a better society by channeling the savings of its 753,125 shareholders into development and risk capital investments to help Québec transition to a green economy, to a human-centred world of work, and to a healthier society. The Fonds offers businesses unsecured financing and strategic support. With $17.8 billion in net assets as of November 30, 2022, the Fonds supported more than 3,600 partner companies and over 296,000 jobs.