Xpansiv, a prominent player in the market infrastructure for the global energy transition, has recently concluded a successful capital raise led by Aramco Ventures, a key investor in low-carbon energy and sustainability, in conjunction with existing investors. This injection of funds is set to bolster Xpansiv’s efforts in advancing its solutions for global energy and environmental markets infrastructure, as well as supporting its investment and acquisition strategy.
Strengthening Market Infrastructure for Sustainable Growth
Xpansiv operates the largest spot exchange for environmental commodities, encompassing carbon credits and renewable energy certificates. As the leading provider of registry infrastructure for energy, power, and environmental markets, Xpansiv also manages the most extensive independent platform for handling and trading solar renewable energy credits in North America. Aramco Ventures, the corporate venturing arm of Aramco, a top-tier fully integrated energy and chemical enterprise headquartered in Dhahran, focuses its investments on supporting Aramco’s operational decarbonization, new lower-carbon fuels businesses, and digital transformation initiatives. The investment from Aramco Ventures is part of its Sustainability Fund, which targets companies that can aid Aramco in achieving its goal of net zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly owned and operated assets by 2050. This aligns with Aramco’s broader sustainability objectives and commitment to reducing its carbon footprint.
In 2023, the oil major reported a 2.4% decrease in Scope 1 emissions compared to the previous year, primarily due to reduced hydrocarbon production and a revised CO2 venting emissions methodology for gas processing operations, leading to more precise accounting. Conversely, Scope 2 emissions rose by 13.0% year-on-year, mainly attributed to the inclusion of the Jazan Refinery in the 2023 greenhouse gas emissions inventory. As part of its decarbonization endeavors, the oil giant recently invested in a US-based direct air capture (DAC) company, CarbonCapture. Additionally, in alignment with Saudi Arabia’s Vision 2030 plan, Aramco collaborated with ADNOC to launch ambitious lithium extraction projects.
Aramco Ventures also oversees Prosperity7, the company’s program for investing in disruptive technologies. Daniel Carter, Managing Director at Aramco Ventures, stressed the crucial role of robust market infrastructure in propelling the global energy transition, highlighting, “We recognize the importance of markets to drive the global energy transition at pace, and further recognize Xpansiv’s core position as the innovator of new trading products, marketplaces, and institutional-grade market infrastructure to enable these vital markets to flourish and scale.”
Leading the Charge in Environmental Commodities and Market Integration
John Melby, CEO of Xpansiv, expressed his satisfaction with Aramco’s investment, stating: “We are pleased to receive this investment from Aramco Ventures and existing investors, which not only represents significant support for our organic and acquisition-driven strategy but also our shared belief in the pivotal role of market infrastructure in accelerating investment in the global energy transition.” Xpansiv continues to broaden its suite of solutions for the global energy transition markets. The company recently introduced Xpansiv Connect™, an open-access market infrastructure designed to facilitate efficient trading and market operations. This strategic investment will empower Xpansiv to further enhance its capabilities and bolster the broader push towards sustainable energy solutions. Xpansiv manages over 1 billion asset transfers annually through its SaaS meta registry and portfolio management system at the core of Xpansiv Connect, integrated with 13 leading carbon and renewable energy registries worldwide.
Xpansiv’s registry software underpins more than 80% of global carbon credits and 60% of North American renewable energy certificates (RECs), in addition to new environmental commodities such as digital fuels. Its CBL spot exchange commands over 90% of the global market share of exchange-traded and settled carbon credits. In 2023, Xpansiv intermediaries facilitated transactions of nearly 2 billion metric tons of carbon and over 36 million megawatt hours of renewable energy. The company has completed 11 acquisitions and strategic investments recently, including a notable stake in Evident, a leading provider of clean economy registry services and certification. This investment underscores Xpansiv’s commitment to the growing international renewable energy certificate (I-REC) market and emerging instruments such as sustainable aviation fuel (SAF), green hydrogen, biomethane, and carbon removals.
Xpansiv’s investor lineup includes renowned names such as Aramco Ventures, Blackstone Group, Bank of America, Goldman Sachs, Macquarie Group Ltd., S&P Global Ventures, Aware Super, BP Ventures, Commonwealth Bank of Australia, and the Australian Clean Energy Finance Corporation. By leveraging the recent capital raise, Xpansiv is poised to maintain its leadership in the environmental commodities sector, fostering innovation and efficiency in carbon credits and renewable energy market solutions critical for achieving sustainable energy goals and reducing global carbon emissions.
