Pajarito Powder gets $4.5M equity investment from publicly-traded company

Pajarito Powder, the Albuquerque-based startup that makes catalysts for hydrogen production, looks to grow from its team of roughly 30 people it now employs. It’s also looking to add needed equipment to scale with that growth.

The startup is in prime position for that future growth, securing a $4.5 million equity investment from a global supplier of advanced materials and $73,055 in job training funds from the New Mexico Economic Development Department in July.

“The short answer is, it’ll be used for general corporate purposes,” Pajarito Powder CEO Tom Stephenson told the Journal in an interview last week of the startup’s multi-million-dollar investment from Ecovyst Inc. “But a little more specifically, (this money is) going to allow us to continue to expand and grow our operation.”

Stephenson said the investment from Ecovyst, a company traded on the New York Stock Exchange, points to its belief in the future of a hydrogen economy, specifically in the area of catalyst support materials for fuel cells and electrolyzers.

He said in securing funding, Ecovyst went through an “extensive due diligence process to evaluate the company.”

“They are a catalyst manufacturer in a variety of different industries with… an interest in expanding their potential footprint into clean energy, and the investment into Pajarito gave them the opportunity to do that,” Stephenson said. “From our perspective, they represent a great partner, as well as an investor, who can be somebody that we can work with as we hope to grow and develop our business.”

Pajarito Powder last month also secured Job Training Incentive Program, or JTIP, funding from the state — money Stephenson noted will go toward training about four employees at high wages, including in engineering and technician roles. He said the startup recently hired a director of manufacturing as well, a key role in scaling the startup’s growth in manufacturing.

The companies will also enter into “various joint development agreements” aimed at developing the technology platforms of both Ecovyst and Pajarito Powder, a news release said, which will include the use of mesoporous carbon for new applications.”

The investment for Pajarito Powder comes as it has continued to grow since its founding in 2012. It recently moved into a larger space at San Mateo Boulevard and Montgomery Boulevard. And, in April, it was awarded $20 million in two grants from the U.S. Department of Energy for work focused on electrolyzers and the other for advancing fuel-cell technology.

In a statement, Paul Whittleston, president of the Advanced Materials & Catalysts segment at Ecovyst, called the equity investment and partnership with Pajarito Powder a “natural win-win.”

“We also believe there are great opportunities to build on the mesoporous carbon capabilities of Pajarito Powder for many new growth applications, including carbon capture,” Whittleston said.