Carbon Upcycling raises $26M Series A led by Climate Investment and BDC Capital
31 July 2023
Calgary, Canada – Carbon Upcycling Technologies Inc. (“Carbon Upcycling”), a leader in circular decarbonization solutions for hard-to-abate sectors, including cement, steel, and mining, has closed a US$26 million Series A funding round co-led by Climate Investment and BDC Capital’s Climate Tech Fund.
The syndicate includes strong participation from existing financial investors, Clean Energy Ventures, its angel investor collective CEVG, Amplify Capital, and strategic investors, Oxy Low Carbon Ventures, CRH Ventures, and Cemex Ventures, which are all enhancing their financial support with commitments to strategically-relevant projects.
This funding will be utilized to deploy multiple commercial projects, including two co-located directly at cement plants. Projects will continue to validate the cost-effectiveness of Carbon Upcycling’s all-electric solution that mineralizes CO2 emissions from industrial facilities and upcycles industrial byproducts into materials that reduce the carbon footprint of cement and concrete.
“Closing this round is a major milestone on the road to becoming the most impactful carbon tech company of this decade,” said Apoorv Sinha, Founder and CEO of Carbon Upcycling. “Over the next year, our mission is to demonstrate our technology’s versatility, scalability, and operational elegance. Proving significant, cost-effective decarbonization potential in the cement industry is possible without a green premium.”
“Scaleable, verifiable carbon reduction technology that can be implemented globally is crucial,” said Mike Bishop, Investment Director at Climate Investment. “Eight percent of global CO2 emissions result from the production of cement and concrete. Carbon Upcycling’s technology could decarbonize a sizeable portion of these sector emissions, and importantly, the next round of projects will validate that the technology can outperform ordinary Portland cement on both cost and performance. This is exactly the type of scaleable climate impact Climate Investment is striving for within its portfolio.”
“Carbon Upcycling is a prime example of a Canadian company addressing a high-emitting sector, like cement, with a unique and patented climate technology using industrial by-products,” said Pascal Lanctot, Partner, Climate Tech Fund at BDC Capital. “BDC’s role is to drive economic benefits for Canada by growing one business at a time. Apoorv and his team have positioned Carbon Upcycling for rapid growth. The scale-up of the company’s technology will enable cross-industrial collaboration between cement, steel, mining, and other heavy industries and help build a clean, low-carbon, circular economy. This is exactly what our Climate Tech Fund II aims to do.”
Carbon Upcycling’s commercial project deployments with, CRH in Canada and CEMEX in the United Kingdom, will be the first to integrate carbon capture and utilization at a cement plant. The company’s projects and research are also being supported by grants from the Government of Canada, UK Research and Innovation, and the US Department of Energy through work with the Colorado National Renewable Energy Laboratory.
“CRH Ventures is focused on accelerating the delivery of decarbonization solutions across the construction industry,” said Eduardo Gomez Mendoza, Head of CRH Ventures. “We have chosen to further develop our existing partnership with Carbon Upcycling as its technology solution aligns directly with our circular, zero-waste sustainability values. The cement plant integration we are supporting means this technology will be deployed at commercial scale in one of the largest cement plants in Canada, demonstrating a cost-effective, circularity-based method of producing low-carbon cement.”
“CEMEX is committed to supporting decarbonization for the built environment and our follow-on investment in Carbon Upcycling demonstrates such ambition,” said Gonzalo Galindo, Head of Cemex Ventures. “Carbon Upcycling provides a scalable solution that effectively reduces the carbon footprint of cement, and we are proud to play a part in the global scaleup of Carbon Upcycling’s technology and the largest mineralization project of its kind at our integral cement plant at Rugby, United Kingdom. Increasing the supply and use of cement replacements aligns with Cemex’s goals of reducing CO2 emissions, and becoming fully net-zero by 2050 through its Future in Action sustainability program.”
“We are focused on developing and commercializing CO2 utilization technologies that complement Oxy’s core business and help further our net zero goals,” said Dr. Robert Zeller, Vice President, Technology, Oxy Low Carbon Ventures. “Carbon Upcycling’s CO2 utilization platform has the potential to create new, sustainable pathways for critical construction materials. Our Direct Air Capture plant that is currently under construction in Texas can provide CO2 as an input for Carbon Upcycling’s process and support decarbonization in the cement industry.”
“We are committed to scaling solutions that promote cross-industry collaborations to realize a circular economy,” concludes Apoorv Sinha. “We are incredibly grateful for our team doing this work, the persistent support from our existing investor base and for Climate Investment, BDC Capital, and Local Investing YYC for joining in this round.”
About Carbon Upcycling
Carbon Upcycling is a carbontech company delivering technology to decarbonize hard-to-abate industries. Carbon Upcycling’s patented technology permanently stores CO2 in industrial byproducts and minerals, transforming them into high-performance alternative materials for cement and concrete. The Company aims to reduce the carbon impact of industrial processes, divert industrial materials from landfills, and enable a circular economy. Learn more about Carbon Upcycling at carbonupcycling.com.
About Climate Investment
Climate Investment is an independently managed specialist investor focused on accelerating capital-efficient decarbonization of heavy emitting sectors.
Operational since 2017, its team of investment and technical experts has built a portfolio of over 30 outstanding technology and business model innovations. Collectively, its portfolio delivered 57 MT CO2e of greenhouse gas reduction in the period 2019-2022. Climate Investment was founded by member companies of the Oil & Gas Climate Initiative (“OGCI”). They have invested in Climate Investment funds and deployed many of its portfolio innovations, supporting their early commercial development.
About BDC Capital
BDC Capital is the investment arm of BDC, Canada’s business development bank. With over $6 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity as well as ownership transition solutions, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/en
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