Cowboy Clean Fuels Raises $13 Million to Simultaneously Produce Biofuel, Remove CO2

Climate solutions startup Cowboy Clean Fuels (CCF) announced that it has raised approximately $13 million at the closing of a Series B equity financing round, with proceeds aimed at commercializing its solution to simultaneously produce clean fuel and remove CO2.

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Founded in 2020, Colorado-based CCF provides technology offering both geologic carbon removal & sequestration and renewable natural gas (RNG) production. The company’s solution utilizes depleted Coal Bed Methane (CBM) wells and infrastructure in Wyoming’s Powder River Basin to generate carbon-negative RNG from agricultural byproducts. These byproducts are converted into CO2 and renewable methane through a biogenic process in deep, geologic coal formations. The company said the commercialization of this technology, termed “Biomass with Carbon Removal and Storage, plus Renewable Natural Gas (BiCRS+RNG),” represents a scalable, capital-efficient solution in the renewable energy sector.

RNG, or biomethane, is produced from organic waste, such as agricultural, industrial, and household wastes, and is chemically identical to fossil-based natural gas, enabling it to support the decarbonization of hard-to-abate sectors such as road transport and heavy industry, without needing to replace existing transmission and distribution infrastructure.

The financing round was led by Houston-based Machan Investments, the family office of former energy executive Dan Dinges, and, combined with $7.8 million in Energy Matching Funds (EMF) from the Wyoming Energy Authority (WEA).

Ryan Waddington, CEO of CCF, said:

“We are incredibly pleased to have secured investment from some of the smartest and most experienced energy entrepreneurs, operators, and investors in the country. This capital, along with the WEA matching funds, will enable us to fully commercialize the BiCRS+RNG process and realize the technology vision behind it, which is nearly twenty years in the making.”

According to the company, the financing will support the development of CCF’s first commercial project in Wyoming, the Triangle Unit Renewable Energy and Carbon Capture and Storage (TRECCS) Project. CCF said the new capital will position it to reach full scale by the end of 2025, potentially making it one of the largest global producers of both RNG and CDR credits. The TRECCS Project, which began commercial operations in early June, has injected 15,000 barrels of mixed feedstock for microbial conversion to methane and carbon dioxide.

Dan Dinges, Chairman of Machan Investments, said:

“We have been impressed with the company’s continued progress since our initial investment in 2022 in all areas of regulatory, compliance, operations, commercial and refining development costs to add value to offtake buyers. Machan is excited to lead this financing and bullishly support Cowboy’s commercialization and scale up.”

About Cowboy Clean Fuels

Cowboy Clean Fuels is dedicated to creating innovative solutions for carbon removal and renewable energy production. Their pioneering BiCRS+RNG technology utilizes depleted Coal Bed Methane wells to produce carbon-negative renewable natural gas, offering a scalable and sustainable solution to meet the growing demands of the renewable energy sector. Founded in 2020, the company aims to lead the industry in both geologic carbon removal and RNG production. For more information, visit their website.