Spinout Carbogenics has successfully closed a $3 million investment and grant funding round, positioning the firm for accelerated growth and international expansion.
The funding will support the development of its breakthrough carbon removal technology, CreChar®, a biochar designed to transform biomass waste into a sustainable, carbon-negative solution, particularly within the biogas Industry.
Spun out of the School of Geosciences in 2016, the business produces an additive which improves the efficiency of anaerobic digestion plants, which in turn produce biogas for heating properties and liquid fertiliser for farmland. The additive - known as CreChar - is made in a high-temperature low-oxygen process using difficult-to-recycle organic waste such as coffee cups and cardboard.
CreChar helps stabilise the digestion process, and creates better growth conditions for the microorganisms that do the digesting. This results in higher quality gas and fertiliser, and increased production efficiency.
CreChar can also be used to improve the performance of anaerobic sludge treatment in the wastewater industry, and can be used as a soil restorer to lock-in carbon.
The investment was secured from UK and US based green investment leaders such as Dangerous Ventures, Green Angel Ventures, Scottish Enterprise and Old College Capital, the University of Edinburgh’s in-house venture investment fund. The company also received funding from Innovate UK, New Mexico Gas, and New Mexico Government Economic Development Department.
Carbogenics aims to scale its operations across the UK and Europe while simultaneously introducing manufacturing in the US, a critical step in addressing the vast biomass waste streams prevalent in regions such as New Mexico.
The company remains headquartered at the University of Edinburgh and continues to work closely with academics at the School of Geosciences and the UK Biochar Research Centre.
Professor Ed Craig, CEO and founder of Carbogenics, said:
This has given us the confidence and validification to drive and demonstrate the value of our breakthrough CreChar product, but also to create other viable carbon products in the UK, Europe and the US. This is a period of growth and expansion in Carbogenics and I am grateful for the backing of so many investors at this time. We will continue to innovate and create tailored products for key environmental issues. "
Kate Fox, Head of Investment at Old College Capital, said:
We are pleased to continue investing in Carbogenics as it scales CreChar and other products in Europe and the US. As the use of biogas grows globally to support the transition to a more secure and sustainable energy supply, Carbogenics is one of the leading innovators in biochar production to enable this. The company is an exciting example of how technology build on university research can enable innovative solutions to tackle major climate and environmental challenges. ”
