UP Catalyst, founded in 2019 by Gary Urb and Kätlin Kaare, develops a groundbreaking method of producing graphite from captured carbon dioxide (CO₂) emissions. Recently, the company has secured an €18 million loan financing from the European Investment Bank (EIB).
In the Startup of the Day column, UP Catalyst’s team shares more details about the startup’s idea, its product, and future plans.
The Startup of the Day column on AIN is dedicated to tech projects from all sectors that originate from the CEE countries. If you would like to introduce your project, please fill in the questionnaire.
Tell us about your startup. How does it work?
UP Catalyst has developed a process using Molten Salt CO₂ Capture and Electrochemical Conversion (MSCC-EC) Technology to transform CO₂ emissions into long-lived carbon materials such as graphite and carbon nanotubes (CNT).
UP Catalyst’s technology has the lowest energy requirement per ton of graphite and CNT produced. We produce carbon materials in a continuous process at 500-750°C, significantly lower than the 2,800°C required for conventional production, using 2x less energy to produce graphite compared to conventional synthetic graphite production methods and 10x less energy to produce CNTs.
CO₂ from industrial emissions is pulled into the molten salt synthesis reactor. With the molten salt heated to a high temperature working as an electrolyte, CO₂ undergoes the process of electrolysis.
A voltage difference applied to electrodes kick-starts the process of breaking down the CO₂ molecules. As a result, oxygen is released, with carbon being collected and then purified.
Image: Up Catalyst
How did you come up with the startup’s idea? What was the reason/motivation behind it?
UP Catalyst is a University of Tartu’s spin-off. The idea grew out of the pain co-founders had as researchers – to give the unwanted waste product - CO₂ - a green purpose.
UP Catalyst is driven to shift demand towards sustainable and locally sourced carbon materials. We do not need to exploit the planet's resources and use fossil carbon material that comes to Europe from far away countries such as China - we can produce them locally from CO₂ emissions.
How long did it take to reach the prototype or MVP? What did you encounter?
It took us one year. In 2017 the founding team achieved proof of concept for a technology capable of producing carbon materials from CO₂. In 2018 we validated our MVP in the laboratory at the University of Tartu.
When exactly did you launch your product? Or when the launch is planned?
In 2022 we finalised Generation 2 reactor with production capacity of 1.5 kg of carbon material per day. In 2024, we scaled up and successfully launched a container-sized reactor with a production capacity of 2.5 tons per year. In 2024, we have secured €18 million in venture debt from the European Investment Bank to build the first Generation 4 reactors, with an annual capacity of 1,350 tons of graphite and 270 tons of CNTs with the goal to produce at least 60 000 tons of carbon materials annually by 2030.
Image: Up Catalyst
Tell us about the stratup’s business model. How do you monetize your product?
Graphite is a critical raw material in Europe as it is needed for green energy transition. 1/3 of the Electric Vehicle (EV) battery is graphite, which currently comes to Europe from China.
Graphite is also a critical raw material for NATO as it is crucial for the defence sector.
What are your target markets and consumers?
We work with EV battery manufacturers, defence industry, paints and coatings manufacturers (carbon black and carbon nanotubes).
If the startup has already launched the product, what are the results: metrics, income, or any clear indicators that can be evaluated.
Our test results show 93.75% capacity retention after exceeding 4000 charge and discharge cycles. Sustainable carbon black performance was confirmed to be at 111% tinting strength and application readiness.
What about your team? How many people are working in the startup?
There are currently 40 people in our team.
Have you already raised any investments? Provide us with more details on each funding round: the amount, investors, the purpose of the investment.
In 2024, the team closed a seed extension funding round of €2.3 million led by Warsaw Equity Group and SmartCap Green Fund. Obtained an €18 million loan from the European Investment Bank.
What's next? Tell us about your future plans.
We target to produce at least 50 000 - 60 000 tons of carbon materials annually by 2030.
