Carbon Capture Startup Arbor Energy Raises $55M Series A

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Arbor Energy, a carbon removal startup founded by ex-SpaceX engineers, has raised $55 million in Series A funding led by Lowercarbon Capital and Voyager Ventures.

The company has shifted its “vegetarian rocket engine” power plant — which once relied solely on biomass — to an “omnivorous” model that can also burn natural gas to meet rising AI data center energy demands.

Arbor uses oxy-combustion to generate CO₂ ready for sequestration and claims tax credits make carbon storage cheaper than emitting it. However, the use of natural gas raises concerns over methane leakage, a potent greenhouse contributor.

Arbor says it sources from low-leakage gas providers and aims to produce electricity with a carbon footprint under 100 grams per kilowatt-hour. The firm continues construction on its Louisiana biomass plant, partially funded by a $41 million Frontier deal to remove 116,000 tons of CO₂ by 2030.