Spokane Valley-based CarbonQuest Inc. has secured $20 million in funding to help scale and deploy its Distributed Carbon Capture technology to a wider range of customers and enable the clean-tech startup to hire more industry talent, says CarbonQuest CEO Shane Johnson. 

The latest investment round builds on the company’s initial series A funding round in August, bringing the combined total to $56 million in capital. 

Johnson says that after the completion of its series A funding last year, some further opportunities with strategic investors remained. 

“We’re excited about the trio of investors that will help us scale and grow our business,” Johnson says. “We’re partnering with them to leverage the strategic value they can bring … to grow incremental value through commercial opportunities and introduction into the marketplace.” 

CarbonQuest has secured investments from Energy Capital Ventures of Chicago and New York-based Aligned Climate Capital. The venture capital firms invest in environmentally proactive products and innovations related to clean energy technology, transportation, sustainability, natural resources, and utility sectors. In August, CarbonQuest secured $36 million from Riverbend Energy Group, an investment firm based in Houston. 

Johnson says the infusion of capital will help the company reinforce its goals of doubling its staff in Spokane and investing in commercial activity of carbon capture system sales and a service offering that helps customers operate, manage, and maintain CO2 offtake. 

The company's headcount has already grown from 25 last August to 38 this month, Johnson says. CarbonQuest plans to staff up to 60 total employees by the end of the year at its Spokane Valley headquarters located at 3010 N. First, just south of the Spokane Business & Industrial Park. 

“We’re looking to expand our facilities here in Spokane,” Johnson says. “By 2026, we expect to grow to the mid-70s in staff. That’s quite a few critical team members on our journey to make a meaningful company here.” 

CsrbonQuest was founded in 2020 by a group of Spokane-area environmental technology entrepreneurs. The company’s technology is designed to capture, separate, liquify, and store carbon emissions from large buildings, preventing them from being released into the atmosphere.

The circular model enables building owners to reduce their carbon footprint, improve energy efficiency, meet environmental regulations, and create healthier living conditions. It launched its first fully operational onsite system in New York City in 2022 and has since added clients throughout the Northeast, Midwest, West, and Canada.