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Stax Engineering, a startup capturing ship emissions at berth, has raised $70 million in equity and debt, the company tells Axios. 

Why it matters: California requires that ships reduce air pollution while docked in its ports, and other regions could follow. 

Zoom in: The round was co-led by Deutsche Bank and Firstime Credit and included $60 million of debt and $10 million of equity. 

How it works: Stax has developed a barge with an arm that connects to the stack of the ship that emits pollutants like sulfur oxides, nitrogen oxides and heavy particulates.

The pollutants travel down a duct into the floating processing unit, which converts them into clean nitrogen and water. 

The system doesn't currently capture carbon emissions out of the stack, but the company is conducting trials to perform that function as well. 

Stax provides the emissions capture service to shippers like NYK Line, Hyundai Glovis, Toyota and Shell, who can avoid paying fines.

Catch up quick: The California Air Resources Board implemented the At Berth regulation in 2021. 

Container vessels and cruise ships already need to comply. All tanker vessels will need to comply to reduce emissions in California ports by the beginning of 2027.

Like with most CARB regulations, the mandate doesn't say how to reduce emissions but leaves the rule open to use competing technologies. 

Some ports have vessels plug into onshore electric power when at berth, reducing their engines and leading to lower pollution. Stax says its emissions capture tech is significantly lower cost to implement than onshore power.

What's next: Stax CEO Michael Walker said the funds will be used to build seven more of its units, bringing its total number of capture systems to 12.

The financing will also help Stax fulfill contracts and expand into new markets in the U.S., the U.K. and Europe.

The funding "allows us now to be in every single port, at every single terminal necessary," in California, said Walker.

Stax also announced it's conducting trials to capture carbon with Seabound, which has developed onboard carbon capture tech.

The big picture: CARB passed the mandates because the air pollution that is created at ports is unhealthy for people living around them.

California's ports are aggressively looking to reduce both pollution and carbon emissions. 

The bottom line: Stax is looking to eventually capture carbon and help its customers become zero-emission shippers. 

Exclusive: Stax raises $70M to capture ship emissions

California mandates that ships must cut emissions at berth.

A tube captures the emissions that come off a maritime ship while docked in a port

Stax Engineering uses an arm to capture emissions from a cargo ship's stack while docked at a port. Photo: Courtesy of Stax Engineering

Stax Engineering, a startup capturing ship emissions at berth, has raised $70 million in equity and debt, the company tells Axios. Why it matters: California requires that ships reduce air pollution while docked in its ports, and other regions could follow.

Exclusive: Stax raises $70M to capture ship emissions

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