Estonian cleantech company UP Catalyst has raised €2.36 million funding round backed by the Warsaw Equity Group and the SmartCap fund. With the fresh investment, the company can build its industrial pilot reactor to process 100 tons of CO₂ annually and produce 27 tons of carbon materials, Vestbee reports.

About Up Catalyst

  • Founded in 2019 and based in Tallinn, Up Catalyst produces carbon nanomaterials and graphite from CO₂ emissions using eco-friendly production methods. The company provides various applications including electric car batteries, concrete, and biomedicine. 
  • Thanks to the technology built on molten salt electrolysis, the startup is to achieve price parity with traditional carbon sources and will significantly reduce the carbon footprint associated with raw material production. According to the company, by replacing fossil-based graphite with UP Catalyst green graphite, the battery anodes will become CO₂ negative. This shift could contribute to avoiding 118.7 megatons of CO₂ emissions annually by the year 2030, marking a substantial environmental impact.
Up Catalyst's team. Image: Up Catalyst

Investment details

  • The current round is an extension to the previous €4 million seed round raised last December totaling the seed investment at €6,36 million.
  • The funding is supported by Warsaw Equity Group, an independent Warsaw-based private equity firm focused on market investments between €4 to €15 million. The SmartCap fund, an Estonian fund, also participated in the funding.

“Supporting UP Catalyst aligns perfectly with Warsaw Equity Group's mission to invest in ground-breaking technologies that combat climate change. Turning industrial CO2 emissions into critical carbon-based raw materials that we are severely lacking in Europe is a game changer. We have been continually impressed by the strength and expertise of UP Catalyst's team and look forward to this partnership,”

Arvin Khanchandani, Investment Manager at Warsaw Equity Group, commented.

Up Catalyst's new reactor will have a production capacity ten times larger than the current one. This will lead to reducing the EU`s dependence on foreign fossil fuel imports and will provide a pathway to utilise CO2 emissions for industrial partners.