Sublime Systems Secures Combined $75M in Investments from Global Building Materials Majors, CRH and Holcim, to Accelerate Scale-Up of True-Zero Cement Manufacturing Technology

Rhea-AI Summary

Sublime Systems, a low-carbon cement technology leader, has secured $75 million in investments from global building materials majors CRH and Holcim. This funding includes equity investments and multi-year pre-paid offtake of Sublime Cement™. The partnerships aim to accelerate the scale-up of Sublime's true-zero cement manufacturing technology.

The investment will fund the construction of Sublime's first commercial facility in Holyoke, Mass, expected to open as early as 2026. This follows an up to $86.9 million investment from the U.S. Department of Energy's Office of Clean Energy Demonstrations. CRH and Holcim will individually collaborate with Sublime to co-develop future true-zero plants in multiple geographies.

Sublime's electrochemical process runs at near-ambient temperature and uses clean electricity and carbon-free inputs to produce reactive cementitious ingredients, avoiding both mineral and fossil fuel emission sources associated with traditional cement production.

Positive

• $75 million investment secured from CRH and Holcim
• Binding offtake reservations for Sublime Cement™
• Partnerships for co-development of full-scale cement plants
• Up to $86.9 million investment from U.S. Department of Energy
• First commercial facility in Holyoke, Mass. planned for 2026
• True-zero technology avoiding mineral and fossil fuel emissions

Negative

• None.

Insights

Financial Analyst

Sublime Systems' $75 million investment from CRH and Holcim is a significant development in the cement industry's decarbonization efforts. This funding, combined with the $86.9 million from the U.S. Department of Energy, provides Sublime with substantial capital to scale its zero-carbon cement technology.

The deal structure, including equity investments and pre-paid offtake agreements, demonstrates strong confidence in Sublime's technology. For CRH and Holcim, this partnership aligns with their net-zero goals and positions them at the forefront of sustainable cement production.

Investors should note the potential for long-term value creation as Sublime's technology could disrupt the $300 billion global cement market. However, the 2026 timeline for the first commercial facility suggests that immediate financial impact will be The true value lies in the future scaling of this technology, which could significantly alter the competitive landscape in the building materials sector.

Environmental Technology Expert

Sublime Systems' electrochemical cement production process represents a paradigm shift in cement manufacturing. By operating at near-ambient temperatures and using carbon-free inputs, it addresses both the thermal energy and process emissions that make traditional cement production so carbon-intensive.

This technology goes beyond incremental improvements like supplementary cementitious materials (SCMs) or carbon capture. It's a true-zero solution that could potentially eliminate cement's carbon footprint entirely.

The partnerships with CRH and Holcim are important for rapid scaling. These industry giants provide the manufacturing expertise and distribution networks necessary to bring this technology to market quickly. The commitment to co-develop full-scale plants post-Holyoke demonstrates the technology's perceived viability and the industry's urgency in adopting radical decarbonization solutions.

If successful, this could be a game-changer for the construction industry's sustainability efforts.

New funding includes equity investments and multi-year pre-paid offtake of Sublime Cement ™

Holcim and CRH, two of the largest global building solutions companies, each separately commit to working with Sublime to deploy the technology in full-scale cement plants; accelerated co-development activities have already commenced

Broad collaboration from industry leaders validates Sublime’s technical and product approach, and ensures swift deployment of Sublime’s technology for decarbonizing cement

SOMERVILLE, Mass.--(BUSINESS WIRE)-- Low-carbon cement technology leader Sublime Systems is accelerating its mission of swift and massive impact on global CO ₂ emissions through unprecedented collaborations with two of the largest building materials providers, CRH and Holcim. The partnerships support near-term development and operations of Sublime’s first commercial manufacturing facility in Holyoke, Mass. with a corporate equity investment and a binding offtake reservation of the Sublime Cement™ produced there, while laying the foundation for a rapid expansion of full-scale manufacturing plants with Sublime’s technology once the Holyoke plant is complete.

The historical process for manufacturing ordinary portland cement (OPC), the most common type of cement used globally today, involves heating limestone, a mineral that is roughly half CO₂ by weight, in kilns powered extensively by fossil fuels, running at about 1,450°C. Founded in 2020, Sublime Systems is commercializing breakthrough, “true-zero” technology that avoids both mineral and fossil fuel emission sources. Its electrochemical process runs at near-ambient temperature and uses clean electricity and carbon-free inputs to produce reactive cementitious ingredients that are highly engineered for an optimally performing cement in concrete.

“If Sublime is to have a swift and massive impact on climate change, our breakthrough technology must be paired with manufacturing operations, logistics, and distribution — areas the building materials leaders excel in,” said Sublime CEO and Co-Founder Dr. Leah Ellis. “Holcim and CRH each bring unique strategic advantages and expertise in the industry, and these partnerships offer Sublime an unparalleled opportunity to scale our technology with the urgency the climate crisis requires.”

The investment from these partnerships will fund construction of Sublime’s first-commercial facility in Holyoke, expected to open as early as 2026. It follows an up to $86.9 million investment Sublime was selected for by the U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED), which will fund up to 50% of the Holyoke plant construction. Holcim’s and CRH’s binding cement reservations further accelerate the use of Sublime Cement™ in construction projects and build on prior reservations Sublime has secured from customers across ready-mix concrete producers, general contractors, renewable energy developers, and infrastructure owners.

Sublime’s Holyoke plant will retire scale-up and commercial risk to advance its technology to cost and scale parity with today’s cement industry, whose plants typically produce at least one million tons of material per year. CRH and Holcim will individually collaborate with Sublime to co-develop those future true-zero plants in multiple geographies. Sublime's technology reflects cement manufacturing innovation that can scale globally, beyond the decarbonization solutions currently available today in supplementary cementitious materials (SCMs) and carbon capture, utilization, and storage (CCUS). Holcim’s and CRH’s partnerships with Sublime each reflect their respective corporate ambitions to becoming net-zero by 2050.

Holcim’s portfolio of decarbonization technologies ranges from innovative low-emission raw materials like calcined clay and recuperated decarbonized cement paste from recycled construction demolition materials; all the way to decarbonized energy, with 15 sites already operating at more than 80% alternative fuels. It is currently developing six large-scale CCUS projects, engineered to produce 8 million tons of decarbonized cement per annum by 2030. And through Holcim MAQER Ventures it works with hundreds of startups to scale up the most innovative technologies in the built environment.

Its Chief Sustainability Officer Nollaig Forrest stated, “Sublime is a disruptive force in cement making. Its unique technology cuts across the entire production process, from the use of clean electricity to carbon-free raw materials. We are excited about its potential and are delighted to be partnering together to bring it to the market at scale. This investment is fully in line with Holcim’s strategy to accelerate the decarbonization of construction by scaling up the most innovative technologies.”

CRH has already brought several innovative new low carbon cement products to market using a variety of secondary cementitious materials including calcined clays and Ground Granulated Blast-furnace Slag (GGBS) which reduce the volume of carbon intensive clinker in cement. The company continues to make progress on its absolute CO₂ emissions reduction target of 30% by 2030. It has approximately 400 research projects underway at its Innovation Centre for Sustainable Construction (ICSC) and through its $250 million venturing and innovation fund CRH is accelerating investment in new technologies and innovative solutions to reduce operational carbon in products, buildings, and infrastructure.

Eduardo Gomez, Head of CRH Ventures, said, “This investment in Sublime demonstrates CRH’s commitment to supporting breakthrough technologies and driving forward innovative low-carbon solutions for the built environment. Sublime’s differentiated technology and ability to scale, combined with CRH’s expertise and footprint across North America and Europe, offers significant potential to dramatically decarbonize cement production.”

Sublime is in active commercial discussions with additional strategic partners across cement, concrete, construction, chemical manufacturing, renewable energy, and more. To inquire about a strategic partnership with Sublime or opportunities to use Sublime Cement™, contact partnerships@sublime-systems.com.

About Sublime Systems

Sublime Systems is on a mission to have a swift, massive, and enduring impact on global CO₂ emissions by decarbonizing cement. Unlike net-zero solutions that rely on carbon capture or removal, Sublime's fully electrified, “true-zero” approach avoids the industry’s legacy fossil-fueled kilns and limestone feedstock. Sublime’s electrochemical process instead extracts reactive calcium and silicates from an abundance of raw materials at ambient temperature, to make ASTM C1157-compliant Sublime Cement™, a drop-in replacement for ordinary portland cement in concrete. Sublime was founded at MIT by Dr. Leah Ellis and Prof. Yet-Ming Chiang, both respected experts in materials science, electrochemical systems, and sustainability research. The company has raised over $200M in funding from leading climate tech investors, global cement incumbents, and cooperative agreements with the U.S. Department of Energy’s ARPA-E, IEDO, and OCED award programs. It currently operates a Somerville, MA-based pilot plant with a >250 TPY nameplate production capacity and is developing its 30,000 TPY first commercial facility to open in Holyoke, MA as early as 2026. Learn more at sublime-systems.com.

About Holcim

Holcim is a global leader in innovative and sustainable building solutions with net sales of CHF 27.0 billion in 2023. Driven by our purpose to build progress for people and the planet, our 63,448 employees are on a mission to decarbonize building, while improving living standards for all. We empower our customers across all regions to build better with less, with a broad range of low-carbon and circular solutions, from ECOPact and ECOPlanet to our circular technology platform ECOCycle®. Through innovative systems, from Elevate roofing to PRB insulation, Holcim makes buildings more sustainable in use, driving energy efficiency and green retrofitting. With sustainability at the core of our strategy, we are on the way to becoming a net-zero company with 1.5°C targets validated by SBTi.

Learn more about Holcim on www.holcim.com, and by following us on LinkedIn.

Sign up for Holcim's Building Progress newsletter here and follow our journey to a net-zero future

About CRH

CRH (NYSE: CRH, LSE: CRH) is the leading provider of building materials solutions that build, connect and improve our world. Employing approximately 78,500 people at approximately 3,390 operating locations in 28 countries, CRH has market leadership positions in both North America and Europe. As the essential partner for transportation and critical utility infrastructure projects, complex non-residential construction and outdoor living solutions, CRH’s unique offering of materials, products and value-added services helps to deliver a more resilient and sustainable built environment. The company is ranked among sector leaders by Environmental, Social and Governance (ESG) rating agencies. A Fortune 500 company, CRH’s shares are listed on the NYSE and LSE.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240924382577/en/

Erin Glabets

Head of Communications

media@sublime-systems.com

FischTank PR

sublime@fischtankpr.com

Source: Sublime Systems

FAQ

What is the total investment Sublime Systems secured from CRH and Holcim?

Sublime Systems secured a combined $75 million in investments from CRH and Holcim, including equity investments and multi-year pre-paid offtake of Sublime Cement™.

When is Sublime Systems' first commercial facility expected to open?

Sublime Systems' first commercial facility in Holyoke, Mass. is expected to open as early as 2026.

How does Sublime's cement manufacturing technology differ from traditional methods?

Sublime's technology uses an electrochemical process that runs at near-ambient temperature, using clean electricity and carbon-free inputs. This avoids both mineral and fossil fuel emission sources associated with traditional cement production.

What additional funding has Sublime Systems received for its Holyoke plant?

Sublime Systems was selected for an up to $86.9 million investment by the U.S. Department of Energy's Office of Clean Energy Demonstrations, which will fund up to 50% of the Holyoke plant construction.

How will CRH and Holcim collaborate with Sublime Systems beyond the initial investment?

CRH and Holcim will individually collaborate with Sublime Systems to co-develop future true-zero cement plants in multiple geographies once the Holyoke plant is complete.