PaceZero backs Alchemy’s U.S. rollout of modular biogenic CO₂ plants

A sustainability-focused lender has placed growth capital behind a company building localized carbon feedstock production capacity for industry. The financing supports Alchemy CO₂’s plan to deploy compact production units that extract high-purity CO₂ from renewable natural gas operations and put it into nearby industrial supply chains. The move responds to recurring shortages and logistical fragility in the traditional CO₂ market, where large, centralized producers and long-distance transport have driven intermittency and price pressure. By siting production closer to end users in food, beverage, water treatment, medical and manufacturing markets, the approach aims to shorten delivery routes, improve reliability and capture additional revenue for RNG operators. The technology is presented as modular and repeatable, allowing staged rollouts at commercial scale without relying on long-haul distribution. From a financing perspective, a committed credit line from a specialized private-debt manager de-risks near-term capital needs and signals investor confidence in a demand-driven, decarbonizing value chain. Operationally the model links two revenue pools—CO₂ sales and enhanced RNG project economics—potentially improving project bankability if unit performance and offtake assumptions hold. Key execution risks include permitting and interconnection delays at distributed sites, market acceptance versus incumbent CO₂ sources, and the challenge of industrial procurement cycles. If Alchemy can match delivered cost and purity expectations, the product could displace some fossil-derived supply and ease regional scarcity that has elevated prices. The transaction also illustrates how targeted credit can accelerate infrastructure that reduces scope and transport emissions without requiring premium pricing. For buyers, the benefit is steadier local supply; for RNG operators, an additional monetization pathway; for lenders, exposure to an emerging segment of climate-aligned industrial infrastructure. The ultimate impact will depend on rollout pace, site uptime, and the degree to which customers switch from established suppliers. Execution wins could pressure centralized suppliers to optimize or rethink logistics; execution setbacks would leave legacy constraints largely intact. Overall, the deal is a tactical step toward decentralizing an essential industrial input and aligning near-term economic incentives with lower-carbon feedstock production.