Overview
GreatPoint Energy, Inc. is an energy company headquartered in Chicago, Illinois, specializing in the production of natural gas through advanced thermal conversion processes. The company operates in the United States and focuses on transforming solid carbonaceous feedstocks into synthetic natural gas (SNG) utilizing a proprietary technology known as catalytic hydromethanation. This technological approach allows for the conversion of diverse raw materials, including coal, petroleum coke, and biomass, into a flexible energy product that can be integrated into existing natural gas infrastructure or used for power generation.
Founding and Leadership
The company was founded in 2005 by serial entrepreneur Andrew Perlman alongside his business partners. Since its inception, GreatPoint Energy has maintained its operational status, developing its core technology and securing strategic investments to advance its commercialization efforts. The founding team established the company with the objective of creating a scalable solution for natural gas production that could leverage abundant domestic resources, particularly in regions with significant coal reserves.
Investment and Capital Structure
GreatPoint Energy has raised $150 million in venture capital from a diverse group of investors representing both the energy sector and technology-focused venture capital firms. Major investors include Dow, AES Corporation, Suncor Energy Inc., and Peabody Energy, reflecting strong interest from established energy producers seeking to diversify their resource utilization. The company also secured funding from prominent venture capital firms including Advanced Technology Ventures (ATV), Draper Fisher Jurvetson, Kleiner Perkins Caufield & Byers, Khosla Ventures, and Citi Capital Advisors (CCA). This broad investor base demonstrates confidence in the company's catalytic hydromethanation technology and its potential to transform how solid fuels are converted into gaseous energy products.
Corporate History and Venture Capital Funding
GreatPoint Energy, Inc. was established in 2005 as a specialized energy company headquartered in Chicago, Illinois. The firm was founded by serial entrepreneur Andrew Perlman alongside his business partners with the strategic objective of producing natural gas from diverse feedstocks. The company’s core technological approach utilizes catalytic hydromethanation to convert coal, petroleum coke, and biomass into natural gas, positioning it within the advanced energy infrastructure sector. This founding period marked the beginning of significant venture capital interest in alternative natural gas production methods.
Venture Capital Funding and Investor Base
Since its inception, GreatPoint Energy has secured substantial financial backing to support its operational and technological development. The company has raised a total of $150 million in venture capital from a diverse portfolio of prominent investors. This funding round included participation from major industrial and financial entities, reflecting broad confidence in the company’s catalytic hydromethanation technology and market potential.
The investor group includes Dow, a global materials science company, and AES Corporation, a leading power generation firm. Energy sector involvement is further represented by Suncor Energy Inc. and Peabody Energy, both significant players in the global energy landscape. The venture capital arm of the funding includes Advanced Technology Ventures (ATV), Draper Fisher Jurvetson, Kleiner Perkins Caufield & Byers, and Khosla Ventures, providing both capital and strategic industry expertise. Additionally, Citi Capital Advisors (CCA) participated in the funding, adding financial services sector support to the company’s capital structure. This combination of industrial partners and venture capital firms has enabled GreatPoint Energy to maintain its operational status and continue developing its natural gas production capabilities.
How does catalytic hydromethanation work?
GreatPoint Energy utilizes catalytic hydromethanation to convert solid carbonaceous feedstocks into synthetic natural gas (SNG). The process begins with low-temperature gasification, where coal, petroleum coke, or biomass are heated in the presence of oxygen and steam to produce a syngas mixture rich in carbon monoxide (CO) and hydrogen (H2). This approach is distinct from traditional high-temperature gasification, allowing for greater control over the syngas composition and thermal efficiency. A critical innovation in this technology is the use of a sulfur-tolerant catalyst. Conventional nickel-based catalysts used in methanation are often poisoned by sulfur compounds inherent in coal and petroleum coke, requiring expensive upstream desulfurization. GreatPoint’s catalyst maintains high activity in the presence of sulfur, reducing preprocessing costs and operational complexity. The syngas then undergoes concurrent water gas shift and methanation reactions. In the water gas shift reaction, carbon monoxide reacts with water vapor to produce additional hydrogen and carbon dioxide. Simultaneously, methanation converts carbon monoxide and hydrogen into methane (CH4). These reactions occur in a single reactor bed, optimizing heat integration and simplifying the process flow. The result is a high-purity methane stream suitable for pipeline injection or liquefaction. CO2 capture is integrated into the process. The carbon dioxide produced during the water gas shift reaction can be separated from the methane stream, enabling carbon capture, utilization, and storage (CCUS) or enhanced oil recovery. This feature enhances the environmental profile of SNG derived from coal and petroleum coke.| Input Fuel | Primary Output | Key Byproducts |
|---|---|---|
| Coal | Methane (CH4) | CO2, Ash, Sulfur compounds |
| Petroleum Coke | Methane (CH4) | CO2, Volatile Matter, Sulfur compounds |
| Biomass | Methane (CH4) | CO2, Ash, Volatile Organic Compounds |
The 2012 China Wanxiang Holdings Partnership
In May 2012, GreatPoint Energy, Inc. announced a strategic partnership with China Wanxiang Holdings to develop coal-to-gas facilities in China. This agreement marked a significant expansion of the company’s catalytic hydromethanation technology beyond the United States. The deal involved a total investment of 1.25billion,with420 million allocated as equity. The partnership aimed to construct 34 reactors utilizing GreatPoint’s proprietary process to produce natural gas from coal, petroleum coke, and biomass.
| Deal Term | Value |
|---|---|
| Total Investment | $1.25 billion |
| Equity Allocation | $420 million |
| Planned Reactors | 34 |
| Announcement Date | May 2012 |
| Partner | China Wanxiang Holdings |
The collaboration leveraged Wanxiang’s industrial presence in China and GreatPoint’s technical expertise in converting solid fuels into synthetic natural gas. This move was part of GreatPoint’s broader strategy to scale its technology globally, following its initial funding rounds that included venture capital from Dow, AES Corporation, and Suncor Energy Inc. The 34-reactor plan represented a substantial deployment of the catalytic hydromethanation process, aiming to capitalize on China’s abundant coal reserves and growing energy demand.
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