Dutch materials innovator Avantium has announced the launch of Carbeau, a new independent company that was spun out of its Volta Technology platform, which is a major step towards commercialization of carbon utilization technologies. The spinout has raised a total of €35.2 million (around USD $40.1 million) in investment which puts the company in a strong position to advance the development of electrochemical solutions to convert carbon dioxide into valuable industrial raw materials. As the industries increasingly look for low carbon alternatives to fossil fuel based production, the launch underscores the increasing investor confidence in the use of CO₂ and in carbon capture, along with sustainable materials, renewable polymers and green chemistry.

The overall funding round consists of €23.7 million (USD $27 million) in cash funds from outside backers, and €11.5 million (USD $13.1 million) from non-cash funds provided by Avantium. The investment will aid in commercialising Carbeau's electrochemical technology and building up to large-scale production. The company is convinced that captured carbon emissions can be turned into valuable feedstocks and that the development of CO₂ utilization, carbon capture, sustainable materials, renewable polymers, and green chemistry solutions can help address climate change.

Valuable Raw Materials from Carbon Emissions

Carbeau, which has the headquarters in the Amsterdam Science Park, is dedicated to the conversion of CO2 with electricity into necessary building blocks in chemistry. The company's technology does not just see CO₂ as a waste product, but a resource that can be turned into sustainable industrial feedstocks.

The electrochemical process allows the production of chemical intermediates that have much lower carbon emissions compared to traditional fossil fuel-based production processes. The technology can potentially be carbon neutral or even carbon negative, depending on the production methods and electricity sources, offering a promising option for industries looking to cut carbon emissions without compromising on profitability.

Make High Value Sustainable Products the focus.

Carbeau's first commercial venture is glycolic acid used in the personal care industry and a new innovative compostable plastic product with the name PLGA, which provides high barrier properties and marine degradable properties to the industry.

Glycolic acid is employed in many skin care and cosmetic products because of its ability to exfoliate the skin; PLGA is also being considered to serve as an environmentally friendly alternative as a material for packaging and other uses where minimizing plastic pollution is becoming a key consideration.

The company says it is working to keep these products affordable, without sacrificing benefits for the environment. This method may make it easier for manufacturers to adopt more widely when they are looking for viable and scalable low-carbon materials.

Now that they are moving away from the PC side of the business, Avantium is concentrating on its main focus.

The spin-out will also help Avantium to simplify its business model, focusing its renewable polymer materials business, while allowing Carbeau to continue to focus on the development and commercialization of its carbon conversion technology business.

Carbeau will be independent, however Avantium will maintain close relationships with 32.7% ownership of the business, as they are still confident on the long term commercial viability of the technology. It allows each of the two organisations to conduct their separate specialisation growth strategies without losing the ability to collaborate in the innovation ecosystem.

The plan is for a pilot plant in the Northern Netherlands.

The first pilot plant will be built in Delfzijl in the northern Netherlands, where Carbeau will have its headquarters. The selection of this region has been driven by its advanced industrial infrastructure, availability of sustainable energy sources and carbon capture and utilization ecosystem.

The company think these regional benefits will offer the perfect setting to showcase its electrochemical CO₂ conversion technology on a large scale. The pilot plant is a key component in the validation of commercial production processes before scaling up to larger scale.

Being based at Amsterdam Science Park also enables Carbeau to stay well in tune with Avantium's research and innovation community, and to work closely with academic partners, technology partners and industrial partners.

Investors are investing in Carbon Innovation.

Several organizations involved in sustainable technology were involved with the funding round. The investors consist of Invest-NL, the Dutch national promotional institution for accelerating sustainable innovation, and Investment and Development Agency for the Northern Netherlands (NOM).

Their involvement comes as part of the increasing awareness that technologies that successfully transform captured carbon into valuable products may be increasingly important in meeting climate goals and provide new business opportunities within industry.

Governments and businesses still continue to invest in carbon reduction techniques, and solutions that take a hit on emissions and are still economically viable in manufacturing are becoming more popular among both public and private investors.

Reward: Leadership Highlights Commercial Growth Potential

Carbeau's launch, said Avantium CEO Tom van Aken, is an example of Avantium's capacity to create breakthrough technologies that can draw in large amounts of external funding, and move towards commercial success independently.

CEO Yap Chie Cheung said that the €35.2 million funding package, alongside strategic and financial partners, offers a solid base to further drive the company's commercialisation and growth. By leveraging innovative technology, proven leadership, and strong partnerships, the company is dedicated to turning CO₂ into a valuable industrial opportunity, rather than an environmental problem, he said.

Carbeau has raised enough capital, developed a commercialization roadmap, and is aiming to deploy industrial-scale carbon use operations, making them a major player in the new carbon utilization sector. The company's technology is also poised to help minimize reliance on fossil-based feedstocks, and could play a role in the shift towards a more circular, low-carbon economy.