Seattle-based First Mode and the Anglo American mining company have signed a binding agreement to combine First Mode with Anglo American’s nuGen effort to develop a zero-emission system for hauling ore. The transaction, which is expected to close next month, values the newly combined business at around $1.5 billion and includes a $200 million equity injection from Anglo American.
The outlines of the business combination plan were first announced in June. At that time, Anglo American said the terms of the agreement were non-binding, and the financial details weren’t released.
First Mode is an engineering company that initially focused on providing expertise for space projects such as NASA’s Perseverance rover mission and the Psyche mission to a metal-rich asteroid. But in recent years, it’s devoted increasing attention to carbon-reduction technologies for heavy industry.
The company provided the hydrogen-fueled hybrid power plant for Anglo American’s nuGen mining truck, which made its debut in South Africa this year as the world’s largest zero-emission vehicle.
“First Mode was founded in 2018 with the goal of building the barely possible,” Chris Voorhees, First Mode’s president and CEO, said today in a news release. “We have done just that, and our mission is now to rapidly decarbonize heavy industry by dramatically reducing our customers’ greenhouse gas emissions. I can’t imagine a team better suited to this urgent challenge.”