Industrial emissions are among the hardest challenges in the energy transition. Finnish deep-tech startup Reduciner is tackling this head-on with a novel technology that converts captured carbon dioxide into usable fuel and industrial raw materials.
The company has raised €3.6 million in seed funding to accelerate the commercialisation of its solution. The round was led by Voima Ventures, with participation from Lifeline Ventures and Mikko Kodisoja Foundation. In addition, VTT has transferred the underlying user rights to the technology and IP as an in-kind investment to the newly established company.
Turning emissions into a resource
Reduciner has developed a proprietary thermochemical process that efficiently converts CO₂ into carbon monoxide (CO), using renewable electricity and biogenic carbon. The innovation allows indirect electrification of combustion processes, enabling large-scale production of sustainable fuels and chemicals and a significant reduction of industrial carbon dioxide emissions globally.
The technology produces synthesis gas rich in carbon monoxide, which can be used in a wide range of industrial processes and as a feedstock for producing synthetic hydrocarbons, for example, methanol. Compared to production of hydrocarbons by conventional CO₂-based processes, using carbon monoxide significantly improves efficiency and cost-effectiveness, and also reduces the need for costly inputs such as hydrogen, leading to a substantial improvement in overall process profitability.
Since carbon monoxide is already compatible with existing industrial systems, the solution allows companies to reduce emissions without costly infrastructure changes.
Improving economics from day one
Unlike many carbon reduction technologies, Reduciner’s solution is designed to be economically viable from the outset. A key driver of this is the production of activated carbon as a valuable co-product, which improves overall process economics and reduces reliance on policy incentives or rising fossil fuel prices. Activated carbon is typically used in water and gas purification, and due to tightening regulations, its use is expected to increase heavily in the near future.
“Most technologies that seek to replace fossil fuels with more sustainable ones require rebuilding of infrastructure. Reduciner’s technology converts CO 2 into CO, which is compatible with existing machinery, allowing the solution to be deployed faster and more cost-efficiently,” says Johanna Grönroos, co-founder and CEO of Reduciner. “What makes Reduciner stand out from other deep tech companies aiming to develop sustainable fuel alternatives is that with our process, the sustainability impacts are reached profitably from the very beginning while also unlocking significant market potential.”
Addressing hard-to-abate industries
The technology is particularly suited for sectors such as lime, cement, steel, and pulp, where emissions are difficult to eliminate.
The lime industry, for example, currently uses expensive fuels and produces unavoidable carbon dioxide emissions. However, the carbon dioxide can be captured from the lime kiln, processed with Reduciner’s technology, and used as fuel in the same kiln, closing the carbon loop. Lime is one of the most extensively used materials in the world, and the industry thereby contains vast emission abatement potential.
“On a global scale, CO 2 emissions from the lime and cement industry are bigger than those from aviation and marine transport combined. With this technology, it is possible to replace fossil fuels at these industries site by site, depending on the availability of green electricity and grid connection, while also improving cost competitiveness,” says Eemeli Tsupari, co-founder and CTO.
From pilot to industrial scale
Reduciner’s technology is based on several years of research at VTT and has been validated through pilot-scale testing.
With the new funding, the company will build its first industrial-scale pilot, a 1 MW facility in Finland, and begin commercial deployments. The goal is then to scale broadly internationally before 2030 and enable industrial sites to transition away from fossil fuels on a site-by-site basis.
“Reduciner stands out because it is already doing what many industrial climate companies can so far only promise on paper: validating the technology while advancing commercial discussions and solving real customers’ problems. For Voima Ventures, that combination matters. When you have breakthrough science, early proof that the solution works, and ongoing negotiations that show clear market pull, you have the foundation of a very compelling company. This is the reason we at Voima Ventures are backing the team,” says Pontus Stråhlman, Partner at Voima Ventures.
