Following its Memorandum of Understanding with low carbon energy solutions company Certarus in April, a company that delivers (CNG), renewable natural gas (RNG) and hydrogen to industrial customers not connected to a pipeline, Caterpillar has now made an investment in BayoTech, Inc, a global leader in localised hydrogen production.
BayoTech announced an indirect equity investment from Caterpillar Venture Capital Inc, the venture capital arm of Caterpillar Inc, the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives, through Cottonwood Technology Funds. The proceeds will be used to accelerate BayoTech’s strategic growth through product development, project development and infrastructure expansion.
BayoTech says it is an energy solutions company committed to addressing the global need for a consistent, cost-effective, low-carbon supply of hydrogen. “Hydrogen possesses many attributes that will drive long-term demand as a fuel source, including its role in global decarbonisation efforts. Today, most hydrogen is produced at large, centralised facilities before being delivered to end users. BayoTech, through its distributed hydrogen and ‘Gas-as-a-Service’ offering, reduces or eliminates transportation and storage costs, which result in less energy wasted and a lower carbon footprint than traditional hydrogen production technology and electrolyser-based systems. The company’s modular, scalable, and rapidly deployable hydrogen production systems require lower upfront capital commitments, streamlined siting and installation and, when paired with renewable natural gas (RNG), offer the most cost-effective green hydrogen available today.”
BayoTech serves a diverse set of end users, including traditional consumers in the industrial gas and chemicals industries, as well as those using hydrogen to power the fast-growing fuel cell segment. “It’s a strong sign of market acceleration when well-established corporations recognise the important role hydrogen will play in decarbonising industry,” said Mo Vargas, BayoTech’s President and CEO. “Cottonwood Technology Funds has been a great partner to BayoTech and continues to play a key role in aligning us with investors to drive our long-term growth.”
“Caterpillar Venture Capital’s investment illustrates a recognition that hydrogen has great potential to help with the energy transition as Caterpillar moves forward. We are excited to be an investor in BayoTech,” said Michael Young, Vice President of Caterpillar Venture Capital Inc.