Made-from-CO2 concrete, lululemons and diamonds spark investor pleasure

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Oct 4 (Reuters) – What do diamonds, sun shades, high-end lululemon sportswear and concrete must do with local weather change?

They can all be made utilizing carbon dioxide (CO2), locking up the planet warming fuel. And tech startups behind these transformations are grabbing investor consideration.

Some use micro organism. Some use proteins. Some use chemical processes to hurry pure reactions. Most pull aside the carbon and the oxygen in CO2 to create one other chemical that’s used to make shoppers items.

Companies within the space raised over $800 million thus far this yr, greater than tripling from 2020, based on a Reuters evaluation of information from PitchBook, Circular Carbon Network, Cleantech Group and Climate Tech VC.

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Reuters Graphics

“I don’t want to call it a green tax, but our consumers who really do care … have demonstrated that they’re willing to pay a bit of a premium,” stated Ryan Shearman, chief executiveof Aether Diamonds, which grows diamonds within the lab utilizing captured CO2.
On the alternative finish of the glamour spectrum, the concrete trade, inexperienced additionally is nice for advertising, stated Robert Niven, CEO of CarbonRemedy Technologies, which makes expertise that injects CO2 into contemporary concrete, and strengthens it by locking within the carbon.

“About 90% of our uptake has been from independent concrete producers large and small that are just looking for that competitive edge.”

The world must seize and retailer 10 billion tonnes of CO2 yearly by midcentury to gradual local weather change, based on United Nations estimates, a scale the businesses can solely dream of, when present carbon seize pilots usually are at scales of tons of and hundreds of tonnes.

Humans produce greenhouse gases which are the equal of round 50 billion tonnes of CO2 annually, and governments will collect in Scotland in late October and November for a U.N. local weather convention on chopping emissions.

All fossil-based merchandise that would use recycled CO2 as an alternative account for some 6.8 billion tonnes of emissions, based on a Columbia University report in May, though lead creator Amar Bhardwaj stated attempting to swap out all of that “would be a misuse of CO2 recycling,” since there are cheaper methods to cut back carbon emissions.

Nicholas Flanders, co-founder of Twelve, which makes use of chemical processes to reuse CO2, says recycling is healthier than storing captured CO2 underground. “We’re developing a technology that can go toe to toe with fossil fuels” with out extra monetary incentives to take away carbon.

That is as a result of many shoppers are attracted by “green” labels.

lululemon athletica inc (LULU.O) says it has created a polyester yarn from carbon emissions with LanzaTech that might be used for future merchandise. LanzaTech, which has raised probably the most funds of firms within the house, based on Reuters’ evaluation, creates ethanol utilizing micro organism. Ethanol is changed into ethylene which is used to make every little thing from plastic bottles to polyester.

CEO Jennifer Holmgren stated LanzaTech’s ethanol is costlier than corn based mostly ethanol, however prospects seeking to supply greener merchandise are shopping for.

The greatest funding within the house this yr, greater than $350 million, was into Houston-based Solugen, which feeds CO2 and different substances to enzymes that make chemical substances for stronger cement, water pipe coating and different merchandise.

Its merchandise are already cheaper than these made out of fossil fuels, stated CEO Gaurab Chakrabarti. Still, it’s not sourcing CO2 captured from manufacturing unit emissions or from the air, which Chakrabarti described as “an option.”

Capturing CO2 is a much less engaging prospect for a lot of traders, who suppose the federal government ought to fund such costly, excessive danger initiatives.

However, Nicholas Moore Eisenberger, managing associate at Pure Energy Partners, has invested in direct air seize agency Global Thermostat and sees alternative in necessity and believes as soon as the initiatives scale up, they are going to be cheaper.

“The science tells us that we have under a decade to start to bend the curve on climate, and that is now within the investment time frame of most venture and private equity investors,” stated Eisenberger.

Reporting By Jane Lanhee Lee and Nia Williams; modifying by Peter Henderson and Marguerita Choy

Jewelry workers are pictured in a workshop at RFG Manufacturing Riviera jewelry design facility in Manhattan in New York City, New York, U.S., September 30, 2021. Picture taken September 30, 2021.  REUTERS Mike Segar

A worker sets an Aether diamond made from captured CO2 into a ring at the RFG Manufacturing Riviera jewelry design facility in Manhattan in New York City, New York, U.S., September 30, 2021. Picture taken September 30, 2021.  REUTERS Mike Segar

A Jewelry worker works at a steam cleaning machine in a workshop at RFG Manufacturing Riviera jewelry design facility in Manhattan in New York City, New York, U.S., September 30, 2021. Picture taken September 30, 2021.  REUTERS Mike Segar

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