Neustark, a Switzerland-based carbon removal startup, has secured $69 million in a significant funding round aimed at scaling its carbon removal technology globally.
Funding Details
- Lead Investors: Decarbonization Partners, a joint venture between BlackRock and Temasek.
- Additional Participants: Blume Equity, Holcim, Siemens Financial Services, Verve Ventures, ACE Ventures, and UBS (via debt financing).
Strategic Collaboration
Neustark has also entered into a strategic collaboration with Holcim to expand its carbon removal technology globally, aiming to create circular and low-carbon building solutions.
Use of Funds
- Market Expansion: Entering new markets in North America and Asia Pacific.
- Team Expansion: Hiring additional personnel to support growth.
- Enhanced Offerings: Developing new solutions to meet the increasing global demand for carbon dioxide removal (CDR).
Company Overview
Neustark transforms demolition concrete into a carbon sink by permanently storing CO2 in recycled mineral waste. Its technology accelerates the mineralization process, binding CO2 to the pores and surfaces of granules, which can then be used in construction. This method ensures long-term CO2 storage, mitigating the risk of reversal.
- Current Operations: 19 carbon capture and storage plants in Switzerland, Austria, Liechtenstein, and Germany.
- Future Projects: 40 additional plants under construction across Europe.
- Clientele: Includes Microsoft, UBS, and NextGen.
CEO Statement
Johannes Tiefenthaler, co-CEO and founder, expressed excitement about the investment, stating it will help Neustark scale its impact across Europe, enter new markets, and develop new solutions to store more CO2 in mineral waste streams.
Industry Context
Achieving net-zero CO2 emissions by 2050, as per IPCC guidelines, necessitates global deployment of carbon removal solutions on a massive scale. Neustark’s approach contributes significantly to this goal by decarbonizing the construction industry and integrating carbon removal into hard-to-abate sectors.
Investment Perspective
Meghan Sharp, Global Head & Chief Investment Officer of Decarbonisation Partners, highlighted the strategic fit of Neustark’s solution within their investment focus on carbon capture, utilization, and storage. She emphasized the potential of Neustark to scale and impact the decarbonization of the construction industry.
What we think
Neustark’s innovative technology and strategic collaborations position it as a key player in the carbon removal sector. The recent $69 million funding round will bolster its efforts to expand globally, enhance its offerings, and contribute to the broader goal of achieving net-zero emissions.
