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Montana Technologies to Combine with Power & Digital Infrastructure Acquisition II Corp


June 5, 2023

Written By Montana Technologies
  • Montana Technologies’ AirJoule™ technology sustainably meets challenges of comfort cooling and water supply, reduces energy consumption, eliminates harmful refrigerants, and creates cost savings

  • AirJoule™, validated by the scientific community, enables the atmosphere to become an accessible renewable energy and water resource around the clock, on the majority of the earth’s surface

  • Montana Technologies has world-class strategic partners, BASF and CATL, committed to the commercialization of AirJoule™

  • Montana Technologies is primed to transform the heating, ventilation, and air conditioning (HVAC) industries by utilizing the latent energy in the atmosphere to provide energy efficient dehumidification and water harvesting

  • Montana Technologies’ AirJoule™ systems are expected to be up to ten times more efficient than existing conventional vapor compression dehumidification systems and desiccant dehumidifiers Implied pro forma enterprise value of $500 million, total addressable market opportunity of over $455 billion, and will be publicly listed on NASDAQ

CHICAGO, June 5, 2023 /PRNewswire/ — Power & Digital Infrastructure Acquisition II Corp (“XPDB”) (NASDAQ: XPDB) (NASDAQ: XPDBW) (NASDAQ: XPDBU) – a special purpose acquisition company, focused on the renewable and transition energy sectors, sponsored by professionals of XMS Capital Partners, LLC, and Transition Equity Partners, LLC – and Montana Technologies LLC (“the Company”), developer of AirJoule™, a transformational renewable energy and cooling technology, today announced that they have entered into a business combination (the “Transaction”) to commercialize Montana Technologies’ unique solution to revolutionize the HVAC sector, reduce emissions, and solve water issues.

The Company, which will operate under the name of Montana Technologies, has a goal of solving two of the world’s most problematic issues, demand for energy-efficient HVAC and water stress, with its AirJoule™ technology. AirJoule™ enables the atmosphere to be an accessible renewable energy and water resource around the clock, providing clean drinking water at as low as half a cent per liter. It efficiently harvests water vapor from the air, providing pure water and air conditioning at a fraction of the current cost, while consuming as much as 75% less electricity than any other HVAC or water generating system.

Montana Technologies is poised to begin commercializing its proven AirJoule™ prototypes through its strategic partnerships with BASF, the largest chemical producer in the world, and CATL, the world’s largest lithium-ion electric vehicle battery manufacturer. These and other pipeline partnerships will enable Montana Technologies to scale rapidly to mass production, using a capital-efficient business model.

Pat Eilers, CEO of XPDB , said: “We are extremely excited that Montana Technologies is entering the public markets as a leading developer of breakthrough dehumidification and cooling technology. We believe Montana Technologies’ groundbreaking AirJoule™ technology, combined with its world-class partnerships, is well positioned to efficiently commercialize and quickly scale the business on a global basis, while also capitalizing on a total addressable market opportunity of over $455 billion for long-term value creation. Additionally, working alongside Matt Jore and his world-class team of scientists to deliver AirJoule’s™ sustainable attributes to the world is aligned with XPDB’s ethos.”

Matt Jore, CEO of Montana Technologies , said: “Today’s announcement is a huge milestone in bringing our transformative technology, AirJoule™, to market with this transaction. Our technology sits at the nexus between energy and water, two essential resources for human well-being, economic growth, and environmental sustainability. AirJoule™ – Energy and Water from Air – does what no other solution can today. It taps into the earth’s atmosphere to harness its vast amounts of thermal energy and water, providing cost-effective and energy-reducing solutions to address global water scarcity and air conditioning demand at significantly lower cost.”

Pete McGrail, CTO of Montana Technologies  and Emeritus Fellow at Pacific Northwest National Laboratory, said: “I have been a scientist at Pacific Northwest Lab for 39 years and joined Montana Technologies in 2022. In this period of scientific discovery and innovation, I’ve had professional experiences like when AirJoule™ was proven, just a handful of times. Seeing the water pour out of the unit was extraordinarily gratifying and will one day be recognized, I believe, as a historical moment in scientific achievement.”

Investment Highlights


  • Montana Technologies’ breakthrough technology, AirJoule™, helps solve two of the world’s most problematic issues: demand for air conditioning, and water scarcity. AirJoule™ provides a unique solution to reducing emissions, revolutionizing the HVAC sector and solving water issues, with a total addressable market of over $455 billion. AirJoule™ enables the atmosphere to be an accessible renewable energy and water resource around the clock.

Technology  AirJoule™ enables the atmosphere to be an accessible renewable energy resource in a range of applications:

  • AirJoule™ is estimated to cost less than half the upfront cost of conventional dehumidification systems, while using significantly lower electricity

  • A standard AirJoule™ unit is expected to harvest up to 360 liters of water per day at as low as a half cent per liter

  • The AirJoule™ system is designed to utilize up to 75% less electricity than current HVAC and water-generating systems

Transaction Highlights

  • Business combination of XPDB and Montana Technologies at pro forma enterprise value of $500 million The Company intends to use the funds to execute its strategic global partnerships, scale production, expand its operational leadership team, and for general operating purposes The Transaction is expected to close in the fourth quarter of 2023, subject to certain closing conditions Following transaction close, Matt Jore is expected to remain in the role of Chief Executive Officer and lead the pro forma Company


Barclays is serving as capital markets advisor to XPDB, and Kirkland & Ellis LLP is serving as legal counsel to XPDB. Latham & Watkins LLP is serving as legal counsel to Montana Technologies. Vinson & Elkins is serving as counsel to Barclays.

About Montana Technologies

Montana Technologies is an atmospheric energy and water harvesting technology company that provides efficient and sustainable air conditioning and pure water from air through its transformational AirJoule™ technology. For more information, visit .

About Power & Digital Infrastructure Acquisition II Corp

Power & Digital Infrastructure Acquisition II Corp is a blank check company incorporated in Delaware for the purpose of effecting a merger, capital stock exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses