- UP Catalyst has closed a €2.36 million seed extension round, bringing its total seed funding to €6.36 million, including the initial €4 million raised last December.
- The latest funding round received equal contributions from Warsaw Equity Group and Estonia’s state fund SmartCap, along with continued support from existing investors such as Extantia, Sunly, Little Green Fund, Scottish Baltic Invest, and UniTartu Ventures.
- The new funding will support the construction of UP Catalyst’s first industrial production unit, positioning the company to become the largest global provider of CO2-grown carbon materials.
UP Catalyst is an Estonian nanotech company founded in 2019, specializing in producing sustainable carbon nanomaterials and graphite from CO2 emissions via electrolysis. The company aims to improve 4 million electric car batteries by 2030 and has raised over €10M in grants and equity funding, expanding its customer base beyond Europe.
“Supporting UP Catalyst aligns perfectly with Warsaw Equity Group’s mission to invest in ground-breaking technologies that combat climate change. Turning industrial CO2 emissions into critical carbon-based raw materials that we are severely lacking in Europe is a game changer. We have been continually impressed by the strength and expertise of UP Catalyst’s team and look forward to this partnership,” stated Arvin Khanchandani, Investment Manager at Warsaw Equity Group.
With this investment, the company looks to expedite the development of an industrial pilot reactor capable of processing 100 tons of CO2 annually, yielding 27 tons of advanced carbon materials such as graphite and carbon nanotubes.
The technology built on molten salt electrolysis not only aims to achieve price parity with traditional carbon sources but also significantly reduces the carbon footprint associated with raw material production.
UP Catalyst’s production process has a carbon footprint of just 0.07 ton of CO2-eq per ton of graphite—20 times lower than conventional graphite production—and 0.7 ton of CO2-eq per ton of carbon nanotubes, an impressive 242 times lower than the emissions from the traditional Chemical Vapor Deposition (CVD) method.
“By 2030, the EU will require 3 million tons of carbon materials for electric vehicle batteries. Despite having the potential to utilise 11 million tons of CO₂ through existing technology, the EU currently invests in underground storage and imports fossil-based materials from China,” said Dr Gary Urb, CEO of UP Catalyst. “The technology is ready—we just need the investment to scale up as a crucial step toward utilising at least 200 thousand tons of CO2 annually by 2030.”
UP Catalyst has also started to move into a new facility hosting the industrial production unit activities, located right next to the Tallinn waste incineration plant. This enables future direct access to hard-to-abate CO2 emissions.
The new plant will boast a production capacity ten times larger than the current setup, marking a significant milestone towards the construction of a full-scale industrial reactor unit. This innovative approach not only alleviates the EU’s dependence on foreign fossil fuel imports but also offers industrial partners a pathway to utilise their CO2 emissions, potentially reducing the need for purchasing allowances from the EU Emissions Trading System (ETS) or mitigating carbon tax burdens.
