Carbon Upcycling Lands $10M to Turn CO2 into Low-Carbon Cement

CALGARY, AB – April 02, 2026 – In a significant move to decarbonize one of the world's most carbon-intensive industries, Carbon Upcycling Technologies has secured up to USD 10 million in asset-secured financing from ATEL Ventures. The deal provides crucial capital for the company's first commercial-scale project, which aims to transform captured carbon dioxide and industrial waste into a new generation of sustainable building materials.

The financing is earmarked for Carbon Upcycling's flagship facility at the Ash Grove Mississauga Cement Plant, a CRH company, in Ontario, Canada. This project represents a critical step in proving the commercial viability and scalability of technology that could fundamentally alter the carbon footprint of the global construction sector, which is responsible for approximately 8% of all CO2 emissions.

A New Recipe for Concrete

Carbon Upcycling's innovative approach tackles two environmental problems simultaneously: industrial emissions and waste. The company has developed a patented, modular technology that can be co-located at industrial sites, such as cement plants, to capture CO₂ directly from flue gas. This captured carbon is then used in a low-energy, low-pressure process to 'upcycle' industrial byproducts.

Materials that would otherwise be destined for landfills—such as fly ash from coal combustion, steel slag, or mine tailings—are used as feedstock. The captured CO₂ is permanently sequestered into these materials, creating a high-performance supplementary cementitious material (SCM). These SCMs can then replace a significant portion of traditional Portland cement clinker, the production of which is the primary source of emissions in cement manufacturing.

This process not only locks away harmful CO₂ but also creates a valuable, cost-competitive product that strengthens concrete and improves its durability. By turning waste streams into a core component of construction, the technology fosters a circular economy model within the industry.

A Strategic Bet on the Circular Economy

The financing from ATEL Ventures, a firm known for providing growth capital to venture-backed startups, is a powerful vote of confidence in Carbon Upcycling's commercial readiness. Structured as an asset-secured loan, the deal provides flexible capital that allows the company to scale without significant equity dilution. Critically, the agreement also grants ATEL an option for a future equity investment, signaling a long-term belief in the technology's potential.

"Carbon Upcycling exemplifies the kind of breakthrough technology we seek to support in venture-backed companies," said Sam Cash, VP & Director at ATEL Ventures. "Their platform converts industrial byproducts and captured CO₂ into valuable cement materials, improving economics for producers while onshoring critical construction supply chains. We're pleased to support the company's first commercial deployment and look forward to seeing this technology scale across industrial infrastructure globally."

This investment aligns with a growing trend in sustainable finance, where investors are increasingly backing tangible, science-based solutions for industrial decarbonization. The deal validates Carbon Upcycling's technology not just as an environmental solution, but as a bankable asset with a clear path to profitability.

Building a Greener Foundation in Mississauga

The funding will directly accelerate the "Carbon 1 Mississauga" project, a landmark initiative in North American clean manufacturing. With groundbreaking having occurred in July 2025, the facility is on track to begin operations in the second half of 2026. Once online, it will be the first-of-its-kind commercial carbon capture and utilization facility at a Canadian cement plant.

The plant is projected to produce up to 30,000 tonnes of high-quality SCMs annually, providing a local source of low-carbon building materials for the Greater Toronto Area's construction market. This not only strengthens regional supply chains but also helps onshore the production of critical materials. Research indicates the facility is expected to reduce the entire Ash Grove plant's carbon intensity by 12,000 tonnes and directly sequester 3,000 tonnes of CO₂ each year.

The project is a testament to industry collaboration, with Carbon Upcycling partnering closely with Ash Grove's parent company, CRH. Major cement manufacturers, including CRH Ventures, Cemex Ventures, and TITAN Group, are already strategic investors in Carbon Upcycling, demonstrating deep industry buy-in.

Cementing a Low-Carbon Future

The timing for Carbon Upcycling's commercial push could not be better. The global market for green cement is projected to grow significantly, driven by stringent environmental regulations, carbon pricing mechanisms like the EU's Carbon Border Adjustment Mechanism (CBAM), and increasing demand for sustainable construction from both public and private sectors.

"Our partnership with ATEL signals Carbon Upcycling's technology is entering a new phase of commercial readiness," stated Suzy Taherian, CFO of Carbon Upcycling. "Capital discipline is vital to building the next generation of clean, competitive industrial infrastructure. This agreement aligns the right financing with the right assets, helping us advance our first commercial project while laying the groundwork for repeatable growth."

With this new financing and strong backing from a syndicate of climate and industry investors—including Builders Vision, Climate Investment, and Oxy Low-Carbon Ventures—Carbon Upcycling is establishing a replicable financial and commercial blueprint. The success of the Mississauga project is poised to serve as a model for deploying localized, clean manufacturing infrastructure across North America and beyond, building a more sustainable world from the ground up.