The efforts to cut emissions from the construction industry are gathering momentum and French low-carbon cement materials developer NeoCem recently raised €17m (approx. USD 19m) in a round to support the commercialisation of its low carbon cement technology. The project will be funded to increase company's production capacity and promote its cement substitutes in the French market and abroad through cooperation with industrial partners. The investment indicates shifting investor preference for technologies enabling cement decarbonisation, sustainable building, green cement and industrial emissions reduction, as well as low carbon cement technology, which were considered to play a key role in reaching climate strategies.

Crédit Mutuel Impact managed an investment that was led by the Fonds Révolution Environnementale et Solidaire, an Article 9 fund. The new money will be used for expansion of its current industrial production facility and will support its plan to expand through joint ventures and collaboration with industrial partners, NeoCem said. The financing acknowledges the growing focus on technologies that can cut emissions in one of the carbon-intensive industries in the world, along with low carbon cement technology, sustainable construction, cement decarbonisation, green building materials and industrial emissions reduction.

Cement is still a key contributor to global emissions.

The cement industry is one of the most difficult sectors to decarbonise because of the carbon-intensive production of clinker, an important component of a traditional cement. It is estimated that approximately 8% of carbon dioxide emissions are generated by cement manufacturing.

Much of them comes from the clinker production process, which involves burning limestone at an extremely high temperature. Besides the emissions from fuel use, it releases a lot of carbon dioxide in this chemical process. The emissions associated with making 1,000 kg of conventional cement are estimated to be over 900 kg of carbon dioxide emissions.

The use of the traditional cement type, which is about 77% clinker, makes it difficult for the manufacturers to reduce emissions considerably without changing the materials used or production process. Governments are increasingly tightening climate regulations, while the construction industry is looking for substitutes that emit less carbon. Companies that are developing substitutes to the material have been gaining more attention from investors and industry stakeholders.

NeoCem's technology utilizes the reclaimed clay by-products.

NeoCem was founded in 2021 by Christophe Deboffe and Benjamin Constant, who have developed cement material based on recycled clay byproducts instead of using clinker as their main ingredient. The company claims that its manufacturing process is circular economy: utilising abundantly available industrial waste streams and co-products as raw materials.

NeoCem says its invention can cut carbon dioxide emissions by as much as 90% as compared to the clinker production and standard cement, while offering similar technical performance. The company also claims that the material does not increase the cost of using it by customers, which is another key aspect in making it more widely adopted in the construction market.

The use of recycled clay-based materials in the production of NeoCem can help to reduce environmental damage from cement manufacturing, and increase the use of waste products from other industrial processes that would otherwise be underutilized.

Support to industrial expansion is provided.

The proceeds from the latest funding round will go towards expanding its existing industrial production facility, said NeoCem. The company will expand its production capacity to 200,000 tonnes annually, thereby increasing its availability to respond to rising demand for low carbon construction materials.

The investment will not only enable NeoCem to grow its manufacturing capacity but also help the Company's strategy of expanding the technology scale through industrial partnerships and joint ventures. The company plans to go to work with local and overseas partners to speed up the uptake of its production model in various markets.

The strategy is part of a wider trend where climate tech firms are aiming to commercialise industrial innovations by partnering with existing producers, instead of developing and opening whole new manufacturing lines.

As the energy sector continues to evolve, Investor Pours Money Into Decarbonisation Of Industry

The investment is part of the strategy of Crédit Mutuel Impact, the solidarity and environmental investment fund of the Mutual Fonds of the Municipality of Paris, to invest in companies that can achieve measurable environmental results and remain economically competitive," said Crédit Mutuel Impact in a statement.

Nadia Bouzigues, Chief Executive Officer of Crédit Mutuel Impact, stated that NeoCem has created a solution that can help to lower emissions from one of the highest emitting industrial sectors in France without requiring any time to be implemented. The technology has already caught the interest of some large construction companies, she added, and with the investment NeoCem will be able to expand its industrial production and commercial development.

The investment follows a surge in funding for technologies that can decarbonise heavy industry – including cement, steel and chemicals – which are considered vital to long-term Net Zero goals. Governments and industries are increasingly focusing on lower carbon construction methods and sustainable infrastructure, and innovations that cut down on the use of conventional clinker should be increasingly important to the future of the cement industry.