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Exclusive: Highwood raises $3M seed to decarbonize oil and gas

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Photo illustration: Shoshana Gordon/Axios. Photo: Ashley Cooper/Construction Photography/Avalon/Getty Images

Oil and gas data startup Highwood Emissions Management has raised a $3 million seed round led by the natural gas-focused venture firm Energy Capital Ventures, the company tells Axios exclusively.

Why it matters: The oil and gas sector is under pressure to establish and deliver on net-zero goals, and companies are turning to software startups to track, manage and reduce carbon emissions across energy infrastructure.

Details: The round was the first external funding for Calgary, Alberta-based Highwood Emissions Management, and also included Veritec Ventures.

  • Highwood CEO Jessica Shumlich said the company will use the funding to integrate more oil and gas asset data, grow the team and expand more broadly in the U.S.

How it works: Highwood sells emissions-data-management software, offers consulting services, and works with various tech partners to access oil and gas data.

  • Oil and gas infrastructure data can be collected with a variety of tools, like sensors, satellites, drone flyovers or developing virtual worlds.

Zoom in: The oil and gas industries need to decarbonize and also transition to embrace digital technology.

  • The sectors are on the precipice of moving from voluntary carbon reduction goals to facing involuntary regulation, said Vic Pascucci III, Energy Capital Ventures' managing general partner.

The bottom line: The oil and gas sectors are responsible for 42% of global emissions directly and indirectly (based on 2015 data), and have to clean up their emissions to compete.

  • Better access to data will help fossil fuel companies become more transparent and accountable.
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