RONAN, Mont. — Montana Technologies LLC today announced entry into a binding term sheet related to a commercial collaboration with Carrier Global Corp., to develop and commercialize Montana’s AirJoule dehumidification and cooling technology.
In connection with the commercial collaboration, Montana has, subject to the satisfaction of certain milestones, granted Carrier the exclusive right to commercialize the AirJoule technology into HVAC equipment in the Americas for a period of three years.
In addition, Carrier has conditionally committed $10 million in growth equity to Montana to foster commercialization the AirJoule technology.
This investment follows strategic partnerships that Montana has entered into with BASF, the largest chemical producer in the world, and CATL, the world’s largest lithium-ion electric battery manufacturer, according to a press release from Montana.
“We are humbled and honored to have received such a strong vote of confidence in our technology and vision,” said Matt Jore, CEO of Montana Technologies. “This partnership and investment represent further proof that both parties are committed to reducing energy consumption, cost, and carbon footprint, and we expect that together these transactions will greatly accelerate the speed at which we can bring our innovative approach to market.”
AirJoule is a dehumidification technology that substantially improves air-conditioning efficiency, Montana said. AirJoule systems utilize a self-regenerating pressure-swing adsorption method to harvest water and thermal energy from air. The proprietary method and design, when used for evaporative cooling by harvesting its own water from air, can reduce electricity consumption as compared to conventional air-conditioning cooling systems, resulting in a corresponding reduction in carbon emissions as well as a reduction, or in some cases elimination, of refrigerants, Montana said.
“At Carrier, we are committed to investing in both sustainable and disruptive solutions that will better our planet for generations to come,” said Ajay Agrawal, a senior vice president and chief strategy officer, at Carrier. “Our partnership with Montana Technologies, and our future collaboration to commercialize its AirJoule technology, marks another step forward in this commitment.”
Carrier will also receive the right to nominate a member to the board of directors of the entity created by the merger of Montana and Power & Digital Infrastructure Acquisition II Corp. Montana announced in June that it will combine with XPDB, and the new company will be listed on the NASDAQ under the ticker AIRJ. The transaction is expected to close in the first quarter of 2024, subject to the satisfaction or waiver of customary closing conditions, including the approval of XPDB stockholders.
“Montana’s partnership with a global industry leader such as Carrier paves the way and completes Montana’s go-to-market strategy in HVAC and provides end market customers and the public markets confidence in and access to Montana’s breakthrough technology,” said Pat Eilers, CEO of XPDB.
