The events of September 11 had a profound impact on Stephen Beaton, prompting him to enlist in the military, a common path for many in his generation.
However, during his time at the U.S. Air Force Academy, his trajectory shifted. His studies in chemistry ignited a curiosity about liquid fuels. “In the aftermath of September 11, particularly with the rise in oil prices, I found myself asking, ‘How can we replace fossil fuels?’ I believed that was crucial for our national security,” he shared.
Beaton’s enthusiasm led him to pursue a PhD at Oxford, followed by various positions within the U.S. Air Force. His responsibilities included leading research initiatives, overseeing the quality of the Air Force’s fossil fuels, and managing investments in energy R&D.
After exiting the military, Beaton’s ambition was to create a company dedicated to the production of, predictably, liquid fuels. “I’ve always had a fascination with fuels,” he noted. Yet, he faced a significant hurdle: “Fuel is a poor initial product,” he acknowledged.
“Fuel is a commodity. It’s inexpensive. The fossil fuel industry has had 150 years to refine its operations for scale and affordability,” Beaton elaborated. “Your launch product should be something akin to a high-margin luxury item—akin to the Tesla Roadster model. However, it should still align closely with the ultimate goal of fuel production.”
Beaton believes his startup, Circularity Fuels, has identified a viable niche: lab-grown diamonds. Since diamonds consist of pure carbon, their manufacturing process necessitates the use of nearly pure methane.
“The market for that methane typically ranges from 100 to 300 times the price of natural gas,” he mentioned, which translates to about $40,000 to $80,000 per ton.
Circularity produces methane through the combination of hydrogen and carbon sourced from CO2. While this concept isn’t groundbreaking, the approach the company employs sets it apart. Numerous enterprises are attempting to convert captured carbon dioxide back into fuel, but the associated costs often prevent them from effectively competing with fossil fuels. Beaton admits that, at present, Circularity cannot rival the vast majority of fossil fuels, yet he sees potential if they can scale their distinctive reactor effectively.
The innovation behind Circularity lies in a unique catalyst that exhibits high selectivity, increasing the yield of the desired molecule—methane—while minimizing byproducts. Moreover, the specially designed reactor can capture carbon and produce methane simultaneously, eliminating the need for separate containment systems. This reactor can reach optimal temperature rapidly, allowing the catalyst to achieve peak efficiency sooner, and it recycles waste heat from the methane production to power the carbon capture apparatus.
Overall, Beaton claims that Circularity’s method is 40% more energy-efficient than alternative CO2-to-fuel processes.
Due to the catalyst’s exceptional selectivity, Circularity is capable of producing 99.9999% pure methane at pilot scales, making it less expensive than conventional fossil fuel sources. “Even with current hydrogen costs between $5,000 and $7,000 per ton, we are achieving profitability,” he asserted.
“We intend to apply these principles on a larger scale to produce methane, natural gas, synthetic natural gas, and other products,” Beaton remarked. The aim is to reduce the cost of e-fuels to a level where they can capture market share from traditional fossil fuels.
Recently, Circularity was recognized as a recipient of an ARPA-E award, and the company is in the process of finalizing contract negotiations. The startup was developed within the incubator at DCVC, where Beaton serves as an entrepreneur-in-residence, benefiting from pre-seed funding. With additional support from ARPA-E and grants from the California Energy Commission, National Science Foundation, and Stanford TomKat Center for Sustainable Energy, the company has secured a total of $4.9 million through various awards and grants.
The reactor’s modular design allows for the production of methane and e-fuels at locations where they are required, thus reducing transportation costs and mitigating greenhouse gas emissions related to leaks. This aspect was a key reason for DCVC’s investment, as managing partner and co-founder Zachary Bogue highlighted to TechCrunch. “The current practices for extracting and transporting natural gas are so inefficient that burning coal could result in a lower overall carbon footprint,” he noted.
Compiled by Techarena.au.
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