Vancouver-based Hydron Energy Inc. is moving to commercialize its biofuel-producing technology and exploring uses such as extracting carbon dioxide (CO2) and rare gases from the atmosphere.

Its flagship product, INTRUPTor, produces renewable natural gas (RNG) by capturing greenhouse gases such as CO2 and methane from feedstocks like biogas.

The low-pressure technology can cut costs compared to conventional RNG production by half and produces only 15 per cent of the carbon emissions, Hydron’s founder, president and CEO Soheil Khiavi told Sustainable Biz Canada in an interview.

A pilot of a mobile INTRUPTor unit in 2024 led to testing with British Columbia’s regulated utility FortisBC, a sign the industry is paying attention to its potential.

Besides RNG production, a versatile range of use cases has been discovered for INTRUPTor.

Rare gases such as xenon and krypton can be taken from the atmosphere for industrial and medical applications. It could serve as a cost-effective means of direct air capture (DAC) – taking CO2 from the air so it can be stored long-term as a climate solution.

“What we want to do with this technology is build the core technology and license the technology for fabrication, manufacturing and installation by others. So this way you can grow the technology fast, the product fast into the market,” Khiavi said.

Piloting INTRUPTor

Hydron embarked on its first industrial-scale pilot at an Ontario biogas farm in Q1 2024. There, almost all the fuel was recovered at a purity of up to 99.9 per cent. In March, Hydron showcased its technology with a tour of the site. Participants included FortisBC.

The performance compelled FortisBC to collaborate with Hydron on two commercial-sized projects in Prince George and Chilliwack, both in B.C.

In Prince George, a mid-sized INTRUPTor that can produce 250 cubic metres of RNG per hour will be tested at a wastewater treatment plant. In Chilliwack, a model attached to a landfill will have double that capacity.

The front-end engineering studies, site preparation and economic assessments are taking place this year as components for the pilots are being manufactured. By 2027, Khiavi expects to have INTRUPTor models ready for installation in both locations.

Hydron has also submitted proposals and participated in bids for RNG projects in the U.S.

Hydron’s path to to commercialization will be manufacturing the main components of INTRUPTor and licensing the process to other companies, starting with RNG production.

Down the road, the company intends to branch out the flexible technology to other applications.

“Our first primary focus is commercialization of the RNG, this is our bread and butter. We’re getting projects built, and then after that we’re going after direct air capture and e-fuels,” Khiavi said.

Expanding into DAC, rare gas capture

Supported by funding from the National Research Council of Canada’s Industrial Research Assistance Program and Innovate BC, Hydron will be using INTRUPTor to capture rare gases and CO2 from the atmosphere.

The CO2 will be used to make aviation fuel in partnership with StormFisher Hydrogen, while the rare gas extraction will be tested in partnership with Boeing.

A small field demonstration using a mobile unit will take place for the dual-purpose INTRUPTor, Khiavi said. It is scheduled to be first tested in April at Hydron’s Vancouver facility for DAC, removing approximately one tonne of CO2 per day. Then the rare gas separation will happen in the fall with the British Columbia Institute of Technology in Burnaby.

The DAC capability of INTRUPTor is expected to be one of the most affordable in the burgeoning industry, Khiavi said.

Montreal-based DAC project developer Deep Sky has expressed interested in Hydron’s technology, he said. Hydron could send a pilot-scale INTRUPTor to Deep Sky’s Innisfail, Alta. facility where it is testing an array of technologies to discover which ones are best suited for mass adoption.

Hydron closing sales

Hydron’s 2030 sales target is $120 million, Khiavi said. To meet this goal, the company has added an additional 16,000 square feet of manufacturing space to its Vancouver facility.

Since its founding in December 2020, Hydron has raised over $10 million in financing and grants. Now it is on the verge of closing an $18-million Series A fundraise to push the commercialization of its RNG-producing INTRUPTor.

The company is fielding approximately 50 requests for sales for INTRUPTor. Khiavi expects to close several deals this year for the RNG-upgrading product line.

As hostile politics in the U.S. put a chill on the cleantech industry, Hydron is looking to demonstrate INTRUPTor in Europe and Asia.

“We need to be versatile and we should always be able to modify our plans in order to get the best of the situation we are at.”