Neustark Secures $69 Million in Funding to Expand Carbon Removal Solution Globally

Rhea-AI Summary

Neustark, a Switzerland-based carbon removal company, has raised $69 million in a funding round led by Decarbonization Partners, with participation from Blume Equity and existing investors including Siemens Financial Services and Holcim. The funding will support Neustark's mission to remove 1 million tons of CO2 by 2030 and expand its operations in Europe, North America, and Asia-Pacific. Neustark’s technology captures CO2 from biogas plants and binds it in mineral waste streams, creating carbonated, recycled aggregates for construction. The company operates 19 carbon capture plants and has 40 more under construction. This investment is one of the largest in the carbon removal sector, reinforcing Neustark's position as a leader in durable carbon removal solutions.

Positive

• Raised $69 million in funding.
• Expansion across Europe, North America, and Asia-Pacific.
• Target to remove 1 million tons of CO2 by 2030.
• Existing investors like Siemens Financial Services and Holcim continue their support.
• Partnership with Holcim to scale globally.
• Operates 19 carbon capture plants with 40 more under construction.
• Sold nearly 120,000 tons of carbon removal to date.
• Certified under the Gold Standard for performance transparency.

Negative

• None.

Insights

Financial Analyst

The $69 million funding round led by Decarbonization Partners is a significant capital injection for Neustark. This investment enables the company to accelerate its expansion plans across Europe, North America and Asia-Pacific. Existing investors such as Siemens Financial Services and Holcim, along with new debt financing from UBS, indicate robust confidence in Neustark's business model and growth potential.

Neustark's approach to carbon removal, binding CO2 in mineral waste streams, provides a unique value proposition in the carbon dioxide removal (CDR) market. The company's growth trajectory, evidenced by the establishment of 19 plants and the construction of 40 additional facilities, positions it well to capitalize on the rising demand for carbon credits and sustainable building materials.

From a financial standpoint, the investment from Decarbonization Partners, which includes entities like BlackRock and Temasek, offers a global platform and network that could unlock further growth opportunities. The strategic collaboration with Holcim, a leading global cement and building materials company, further strengthens Neustark's market position, providing an avenue for scaling its technology.

Market Research Analyst

The carbon removal market is experiencing substantial growth, driven by increasing regulatory pressures and corporate commitments to net zero emissions. Neustark’s innovative technology addresses a critical need in this space by providing a scalable and permanent solution for carbon dioxide capture and storage. The company's IP-protected accelerated mineralization process offers a clear competitive advantage.

The investment round not only provides the financial resources necessary for expansion but also brings in strategic partners with expertise in decarbonization and climate tech. The involvement of Decarbonization Partners and Blume Equity indicates that Neustark is well-positioned to navigate the complexities of entering new markets and scaling operations globally.

Neustark's ability to sell nearly 120,000 tons of carbon removal to high-profile clients like Microsoft and UBS demonstrates strong market validation. The certification under the Gold Standard ensures credibility and transparency, which are important for attracting further investments and partnerships.

Tech Expert

Neustark's technology leverages an accelerated mineralization process to bind CO2 permanently in mineral waste streams. This approach not only addresses the issue of CO2 removal but also converts demolition concrete into a usable carbon sink. The durability of this solution, capable of storing CO2 for hundreds of thousands of years, presents a long-term, reliable method for carbon sequestration.

The partnership with Holcim, a leader in construction materials, is particularly notable. This collaboration facilitates the integration of Neustark's technology into existing construction industry processes without major disruptions. This seamless integration is key to scaling the technology efficiently and effectively.

Furthermore, the focus on biogenic CO2 capture, liquefaction and injection into recycled aggregate highlights Neustark’s innovative approach to circular economy principles, making construction materials both renewable and sustainable.

• Growth equity funding round led by Decarbonization Partners, with participation from Blume Equity, to propel neustark's expansion across Europe, North America, and Asia-Pacific, and support its mission to remove 1 million tons of CO₂ in 2030.
• Existing backers Siemens Financial Services, Verve Ventures, ACE Ventures, and Holcim continue their support, and UBS adds debt financing.
• The Swiss climate tech company secures one of the largest growth equity investment rounds in carbon removal.¹

BERN, Switzerland--(BUSINESS WIRE)-- Neustark, a Switzerland-based carbon removal provider, has raised $69 million in a funding round to underpin its rapid scale-up in the carbon dioxide removal (CDR) market. The growth equity round was led by Decarbonization Partners, a partnership between BlackRock and Temasek, and will reinforce neustark’s continued growth path and support their mission to permanently remove 1 million tons of CO₂ in the year 2030.²

Climate tech growth investor Blume Equity also participated in the round. The new investors join neustark’s existing backers, which are all continuing their support: Holcim, Siemens Financial Services, Verve Ventures, and ACE Ventures. In addition, UBS has contributed capital to the round via debt financing. Neustark also has a strategic collaboration with Holcim to scale up its carbon removal technology globally, enabling building solutions that are both circular and low-carbon.

The Swiss CDR specialist has developed and deployed an IP-protected solution that allows the durable removal of carbon dioxide from the atmosphere by capturing CO₂ at point source, then binding it in mineral waste streams via an accelerated mineralization process.

Biogenic CO₂ is captured from partnering biogas plants, then liquified and transported to construction waste recycling sites. There, the carbon dioxide is injected into concrete granulates from demolished buildings or other mineral waste such as slag and slurry. Neustark’s technology triggers an accelerated mineralization process, binding the CO₂ permanently to the pores and surface of the granules. The carbonated, recycled aggregate can then be used to build roads or to produce fresh recycled building materials. The mineralization process stores the captured CO₂ for hundreds of thousands of years, and the risk of reversal is proven to be slim to none.

“We turn the world’s largest waste stream – demolition concrete – into a carbon sink. In the last year, we have already deployed our unique solution at 19 sites. This growth investment will take us into the next exciting phase of our mission, helping us to further scale our impact across Europe, enter new markets in North America and Asia Pacific, and develop new solutions to store even more CO₂ in mineral waste streams,” said Johannes Tiefenthaler, co-CEO and founder at neustark.

He added: “The CDR market is experiencing substantial growth, driven by high-quality and durable carbon removal solutions, and a surging demand for trusted carbon credits. Despite this, we need to exponentially accelerate the removal of CO₂ if we want to reach net zero goals by 2050. This target will only be possible by globally deploying highly scalable, measurable and commercially viable carbon removal solutions at the scale of millions of tons per year.”

Together with construction recycling partners, neustark currently has 19 carbon capture and storage plants in operation across Switzerland, Austria, Liechtenstein, and Germany. Forty future plants are currently under construction across Europe, with a robust pipeline of projects beyond that.

Neustark has sold nearly 120,000 tons of carbon removal to date, making it one of Europe’s fastest-growing carbon removal companies, with clients including Microsoft, UBS and NextGen. All projects are certified under the Gold Standard to ensure credible third-party assessment and transparency related to performance.

Neustark will be able to capitalize on Decarbonization Partners’ global platform and reach, including its access to corporates and investors across North America and Asia Pacific and its dedicated decarbonization specialists as well as Blume Equity's deep climate network and expertise in scaling European disruptive climate tech companies. With their partnership, alongside neustark’s existing investors – all of whom possess extensive technology investment portfolios –, neustark will expand its team and enhance its offerings to meet the increasing global demand for CDR.

Meghan Sharp, Global Head & Chief Investment Officer of Decarbonization Partners, said: “With carbon capture, utilization and storage being one of our key investment focuses, we believe that we have found a perfect partner to help scale the industry – and ultimately its decarbonization impact – in the years to come. Neustark not only helps organizations integrate carbon removal to address their hard-to-abate emissions, but their solution also contributes to decarbonizing the construction industry.”

She added: “With their unique business model that seamlessly integrates two existing and mature industries without disrupting their day-to-day operations, neustark has established themselves as one of the global leaders in high-quality durable CDR with a solution that is removing carbon dioxide from the atmosphere today.”

***

About neustark

Limiting global warming to 1.5°C implies reaching net zero CO₂ emissions in 2050 according to the IPC. Next to substantially reducing emissions, this target will only be possible by globally deploying carbon removal (CDR) solutions at the scale of billions of tons of CO₂. Neustark is a leading provider in this rapidly growing field, having developed a solution to permanently store CO₂ from the air in recycled mineral waste such as demolished concrete.

Our first solutions have been deployed in Switzerland and Europe and are already capturing and storing tons of CO₂ every week. We are currently scaling up our operations and carbon removal impact globally – on the road to removing one million tons of CO₂ in 2030, and beyond that.

Founded in 2019, neustark AG is based in Berne, Switzerland, and is a team of around 60 people (as per Q2 2024). Together, we enable permanent CO₂ storage for a bright future of all generations on our planet.

www.neustark.com | neustark | LinkedIn

About Decarbonization Partners

Decarbonization Partners is a joint venture between Temasek and BlackRock focused on late-stage venture capital and early growth private equity investing in next-generation companies that provide solutions and technologies to help accelerate global efforts to achieve a net zero global economy by 2050. Decarbonization Partners combines Temasek and BlackRock's complementary platforms and expertise in sourcing and underwriting private investments, portfolio and risk management, and sustainable technology and analytics. Decarbonization Partners invests in a wide range of companies that have proven technology and need capital to scale. The partnership targets multiple sectors, including Carbon Capture, Storage and Utilization, Bio and Low Carbon Products, Next Generation Energy, Advanced Mobility, Carbon Management Services and Digital Transformation. The partnership reflects BlackRock and Temasek's shared commitment to help build more sustainable and resilient portfolios, while also contributing to consistent, long-term financial returns that benefit their clients and stakeholders.

About Blume Equity

Blume Equity is a specialist climate tech growth investor. Blume Equity invests thematically in disruptive European climate tech scale-ups with the mission to help entrepreneurs accelerate growth and impact in the pursuit of Net Zero. The Blume Equity team works in close partnership with management teams on the growth journey, drawing upon the team’s deep scale-up and sustainability expertise.

https://blumeequity.com

Images

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¹ CDR.fyi, List of Investors by Technology and Stage, CDR.fyi - 2023 CDR Investment Landscape: List of Investors
² Removing 1 million tons of CO₂ is neustark’s target for the year 2030. The company’s targets see increasing annual carbon removal impact every year post 2030.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240624860737/en/

Media:

Neustark – Sophie Dres, media@neustark.com, +41 76 805 2111

Decarbonization Partners – Curtis Chou, curtis.chou@blackrock.com, +44 7990 338103

Source: BlackRock

FAQ

What is the recent funding amount secured by Neustark?

Neustark secured $69 million in a recent funding round.

Which companies led the funding round for Neustark?

The funding round was led by Decarbonization Partners, a partnership between BlackRock and Temasek.

What is Neustark's mission for CO2 removal by 2030?

Neustark aims to permanently remove 1 million tons of CO2 by 2030.

In which regions will Neustark expand its operations?

Neustark will expand its operations across Europe, North America, and Asia-Pacific.

How many carbon capture plants does Neustark currently operate?

Neustark currently operates 19 carbon capture plants.

What technology does Neustark use to remove CO2?

Neustark captures CO2 from biogas plants and binds it in mineral waste streams, creating carbonated, recycled aggregates for construction.

What is Neustark's certification standard for carbon removal?

Neustark's projects are certified under the Gold Standard for credible third-party assessment and transparency.