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Carbon removal developer raises $69m in funding round led by BlackRock-backed climate fund

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Published: 1 July 2024

The funding will support the growth of Swiss-based carbon removal developer Neustark which has developed a technology aimed at decarbonising the construction industry.

Neustark has developed a solution to permanently store CO2 from the air in recycled mineral waste such as demolished concrete, contributing to the decarbonisation of the construction industry | Photo by EJ Yao on Unsplash

Neustark, a Swiss-based carbon removal developer, has raised $69m (€64.2m) in a funding round led by Decarbonization Partners, a partnership between BlackRock and Singaporean state investment firm Temasek, which targets next-generation companies focused on the transition to net-zero.

Neustark has developed a carbon capture, utilisation and storage solution which works by capturing CO₂ and then binding it in mineral waste streams through an accelerated mineralisation process.

The technology developed by the firm allows the carbonated, recycled aggregate to be used to build roads or produce fresh recycled building materials.

Climate tech growth investor Blume Equity also participated in the round, joining existing investors including Siemens Financial Services, Verve Ventures, ACE Ventures, Holcim as well as UBS which contributed to the round through debt financing.

“We turn the world’s largest waste stream, demolition concrete, into a carbon sink. In the last year, we have already deployed our solution at 19 sites,” said Johannes Tiefenthaler, co-CEO and founder of Neustark.

“The carbon dioxide removal (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,” Tiefenthaler added.

Carbon removal demand

The United Nations Intergovernmental Panel on Climate Change (IPCC) describes carbon removal as “anthropogenic activities removing CO₂ from the atmosphere and durably storing it in geological, terrestrial, or ocean reservoirs, or in products”.

The scientific community estimates the world will need to remove 10 gigatons (Gt) of carbon dioxide from the atmosphere each year by mid-century if it is to stay within its carbon budget and have any chance of limiting global warming to 1.5°C or even 2°C, as previously reported by Impact Investor.

On 10 April 2024, the European Parliament adopted the provisional agreement on the Carbon Removals and Carbon Farming (CRCF) Regulation which created the first EU-wide voluntary framework for certifying carbon removals, carbon farming and carbon storage in products across Europe.

Earlier this year, the Decarbonization Partners announced the final close of their fund at $1.4bn, surpassing its fundraising target. Its investment in Neustark is its first in Europe.

“Neustark not only helps organisations integrate carbon removal to address their hard-to-abate emissions, but their solution also contributes to decarbonising the construction industry,” said Meghan Sharp, global head & chief investment officer of Decarbonization Partners.

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