Membrane Technology and Research, a Newark, California-based developer of membrane-based separation systems for industrial gas processing, has raised $27M in Series B funding led by Climate Investment. The company produces modular systems like VaporSep® for hydrocarbon recovery and Polaris® for CO2 capture, targeting petrochemical plants, natural gas processors, and refineries. The capital will expand manufacturing capacity, R&D, and deployments in carbon capture, hydrogen purification, and natural gas sweetening.
CCUS Investments Fuel Membrane Scale-Up
The round arrives amid a surge in funding for carbon capture technologies, driven by U.S. IRA tax credits and DOE grants. Climate Investment, backed by OGCI members like Shell and BP, led the investment with participation from Hartree Partners. MTR's focus on proven, modular membranes positions it to capture demand in high-emission sectors. Over 450 systems deployed worldwide since 1982 underscore its commercial maturity.
Legacy Separations Inflate Industrial Emissions
Industrial gas separations rely on energy-intensive methods like cryogenic distillation, contributing significantly to emissions in petrochemicals and refining. Petrochemical plants vent valuable hydrocarbons, while natural gas processors face CO2 and H2S contamination. Current solutions often require high capex and opex, slowing decarbonization. Membranes offer lower-energy alternatives, but scaling production has lagged.
Modular Membranes Cut Energy Use 50%
MTR's skid-mounted systems enable rapid deployment with paybacks under one year. VaporSep® recovers hydrocarbons from vents, FuelSep™ conditions fuel gas, and SourSep™ removes H2S. Unlike incumbents focused on nitrogen generation, MTR targets niche petrochemical recovery and syngas CO2 removal. The Polaris® line supports point-source carbon capture for biogas and power plants.
As Climate Investment's Patrick Yip noted:
"Membrane technologies offer a highly energy-efficient alternative to conventional separation processes, enabling industrial decarbonization at scale."
OGCI-Backed VC Signals Sector Bet
Climate Investment, managing $1.8B AUM, targets decarbonization in cement, steel, and chemicals. Its portfolio includes 44.01 for carbon mineralization and Andium for methane monitoring. Hartree Partners adds commodities trading expertise for natural gas and petrochemical markets. This mix validates MTR's path from proven deployments to global expansion.
Membrane Market Grows Amid H2 Boom
The gas separation membrane market stands at $1.5B in 2024, projected to reach $2.16B by 2030 at 6.3% CAGR. Trends like biogas upgrading and blue hydrogen production drive adoption. Competitors include Air Products PRISM membranes and Evonik Sepuran, but MTR's 450+ installations differentiate in petrochemical applications. Policy tailwinds like IRA 45Q credits up to $85/ton CO2 accelerate deployment.
Pioneers Drive 40-Year Track Record
Founder Dr. Richard W. Baker, with 100+ patents and author of 'Membrane Technology and Applications,' established MTR in 1982. Co-leader Dr. Hans Wijmans holds 37 patents and served as NAMS president. New CEO Brett Andrews brings 30+ years from Memstar USA. This blend of research depth and commercial scaling supports CCUS growth.
Middle East Contract Signals Expansion
MTR recently won a contract for a large polyethylene plant in the Middle East. Funds will boost manufacturing 4x and advance H2S/CO2 modules. With ISO 9001 certification and global sales, MTR eyes CCS hubs and hydrogen economy opportunities.