Cottonwood Technology Funds, a top performing investor in technology start-ups in the Southwest, US and Northern Europe, announced today a $1.5M investment in BayoTech Inc. BayoTech has developed a unique nested-flow approach to the Steam Methane Reforming (SMR) process. This nested-flow approach was originally developed and demonstrated at Sandia National Laboratories. BayoTech has licensed the technology from Sandia and enhanced the technology for broader applications.
The SMR process is widely used throughout the chemicals industry, producing hydrogen and carbon monoxide for many applications. Among these applications are hydrogen for use in both transportation and stationary fuel cells, and both hydrogen and carbon monoxide as chemical feedstocks. The nested-flow process specifically enhances ammonia, fertilizer, propane and electricity production. The nested-flow approach dramatically improves the energy efficiency of chemical processes. For the SMR process a 25% reduction in energy usage and a significant reduction in process scale are achieved using this technology. This means smaller regionally located production facilities can compete on production price while also significantly reducing transportation costs and logistics – not unlike mini-mills transformed the steel industry.
“We couldn’t be happier to have Cottonwood endorse our approach and provide the capital needed to prove our technology at production scale initially here in New Mexico,” said Justin Eisenach, CEO of Bayotech. “We are confident that our new process can compete across multiple industries.”
Said Dave Blivin, Managing Partner of the Cottonwood Technology Funds, “We are excited by the prospect of the Bayotech technology’s ability to compete in many application areas. Because their demonstration unit will be at production scale, the ability to transition quickly from demonstration to production is an attractive additional benefit of their technology.”
Bayotech, Inc. is a development stage company focused on applying its proprietary nested-flow technology to the production of hydrogen, fertilizer and many other relevant applications. BayoTech is a 2016 Yield Lab portfolio company. Visit www.bayotech.us.
Cottonwood Technology Funds is a seed and early-stage technology commercialization fund with offices in Santa Fe and Albuquerque, New Mexico; and Enschede, the Netherlands. It invests in technology-related (particularly telecom, chemistry/material sciences, photonics, biosciences, robotics and new energy) businesses originating throughout the Southwest region of the US and also in Northern Europe. These regions include numerous national laboratories, over a dozen major research universities and several major research medical centers. Current investments include Skorpios, Clear Flight Solutions, xF Technologies (formerly Incitor), Eurekite, Respira, Trilumina, Acme Materials, OPNT and Exagen. Visit www.cottonwoodtechnologyfund.com.
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For more information, please contact Dave Blivin, Managing Director, at 505 412-8537, Justin Eisenach, BayoTech CEO at Justin@bayotech.us or 303 525-3954.