update

Ucaneo secures €6.75 million in seed funding to accelerate development of cutting-edge CO2 removal technology

  • Berlin-based Ucaneo pioneers direct CO2 removal technologies by an innovative electrochemical process mimicking the human lung, enabling cost-effective carbon removal by 2026
  • €6.75 million Seed funding round to build one of the largest DAC testing and development facilities in Germany as well as developing their first industrial product
  • Funding round led by top hardware and industrial energy investors, Smart Energy Innovationsfonds by Energie 360° and IBB Ventures, with participation from new and existing investors

Berlin, September 10, 2024 – Ucaneo, an innovative provider of direct air capture (DAC) technologies for CO2 removal, today announced it has raised €6.75 million in seed funding incl. grants. Spearheaded by top hardware and industrial energy investors, Smart Energy Innovationsfonds (SEIF) by Energie 360° and IBB Ventures, with participation from new investors such as Plug and Play Sustainability Fund. Additionally, existing investors Grantham Environmental Trust, Carbon Removal Partners, Nucleus Capital, Apprecia Capital, and notable angels including Flixfounders and Pjotr van Schothorst also contributed.

The newly secured capital will accelerate Ucaneo to build one of the largest DAC testing and development facilities in Germany as well as developing their first industrial product supporting the company’s mission to remove 0.5 GT of CO2 from the air by 2035 - roughly the same weight as all humans on earth combined or ~1% of global annual CO2 emissions!

Florian Tiller, Ucaneo Co-founder and CEO, stated: "This is a pivotal moment for our company. The growing recognition of the critical need for CO2 removal technologies, coupled with increasing regulatory support, positions Ucaneo at the forefront of this transformative sector. This funding round testifies our progress and potential, enabling us to quickly build one of the most cost-efficient, scalable and mass-producible Direct Air Capture systems, delivering a sustainable solution for CO2 removal or utilisation processes at any location and scale."

Innovative Technology Inspired by Nature

Ucaneo's state-of-the-art electrochemical technology mimics the human lung and how CO2 is managed in the human body. Utilising electricity and a specialised biomimetic solvent, Ucaneo removes atmospheric CO2 at continuous regeneration at room temperature, concentrating CO2 into a pure gas ready for industrial use. The DAC technology is highly energy-efficient and compatible with variable intermittent renewable energy sources such as solar and wind energy, allowing for energy price arbitrage and a flexible, on-demand CO2 removal.

"To scale carbon removal, we need accelerated hardware development! Ucaneo's technology is designed for rapid iterations, our own so called interchangeable modular product architecture. To reach cost-effectiveness already at a smaller scale, we are leveraging proven components, established supply chains and a modular design suitable for global deployment." said Carla Glassl, Ucaneo Co-founder and CTO.

Commitment to Rapid Scaling and Deployment

Ucaneo has developed a pioneering technology proven in the lab. Supported by an extensive TEA and an external third-party feasibility study, Ucaneo’s technology can achieve costs of just below €300/tCO2 already in the upcoming years, making it one of the cheapest DAC solutions in the world. In the long-term Ucaneo targets a removal price of below €100/tCO2. By 2026, Ucaneo aims to have their first industrial-sized product in place at one of the largest DAC testing and development facilities in Germany proving performance and scalability. This will be part of their first project supported by the Milkywire Climate Transformation Fund, where Ucaneo was chosen as 1 of 13 suppliers from over 220 Carbon Dioxide Removal (CDR) suppliers.

To reach their ambitious goals, Ucaneo has just moved to the high-tech Campus in Marzahn led by Berlin.Industrial.Group and the hardtech innovation ecosystem MotionLab.Berlin. On campus, innovative startups and hidden champions share resources to accelerate the market introduction of new technologies. This includes machinery, laser & robotic lab, clean rooms, and services like certification and financing. This will support Ucaneo to establish a DAC facility in Berlin, positioning Germany as a leader in innovative climate tech solutions.

Lars Hennersdorf, Investment Manager at Smart Energy Innovationsfonds by Energie 360°, commented: “At SEIF, we’re all about supporting innovative startups crucial for a sustainable energy future. With CO2 removal tech on the rise, we’re excited to back Ucaneo’s amazing team and technology to further decarbonize various industries.”

Marvin Martsch, Senior Investment Manager, IBB Ventures, added: “Ucaneo’s tech is a game-changer—affordable, energy-efficient DAC solutions that turn CO2 into useful products. They've developed a game changing technology and functional lab-scale prototype in 2 years, showing real talent and ambition.”

About Ucaneo

Ucaneo, headquartered in Berlin, specialises in the development of cutting-edge technologies for direct CO2 removal from the atmosphere. Their patented solutions harness renewable energy to remove CO2 from the air, significantly reducing global greenhouse gas emissions as well as providing CO2 as a resource for the future of production closing the CO2 cycle. With mounting pressure to lower atmospheric CO2 levels, Ucaneo’s technologies help companies meet regulatory requirements and achieve sustainability targets.

About SEIF by Energie 360°:

The Smart Energy Innovationsfonds supports startups in the fields of cleantech, energy, smart cities, and mobility, helping them establish themselves quickly in the market and achieve sustainable growth. Startups benefit from the expertise, personal commitment, and high-calibre network of the investment committee and the funds network. The investment team of the Smart Energy Innovationsfonds combined with the energy expertise of Energie360° assist startups with all questions related to business, tech and market development.

About IBB Ventures:

IBB Ventures has been providing venture capital to innovative Berlin-based companies since 1997 and has established itself as the market leader in early-stage financing. The funds are primarily used for development and market launch of innovative products or services as well as for business concepts from creative industries. In addition to the two VC funds for technology and creative companies with a volume of EUR 90 million, an impact VC fund with a volume of EUR 30 million has been in the investment phase since 2022. All VC funds are financed by the Investitionsbank Berlin (IBB) and the European Regional Development Fund (ERDF), managed by the State of Berlin. IBB Ventures has already invested in more than 260 creative and technology companies in Berlin; in syndicates with partners, the start-ups received approx. EUR 1.8 billion, of which IBB Ventures has invested EUR 275 million as lead, co-lead or co-investor. IBB Ventures is the parent brand for the VC activities of IBB Beteiligungsgesellschaft.

Contact Person

Marvin Martsch
IBB Ventures
Bundesallee 210
10719 Berlin

Tel: +49 (0)30 2125 3201
Mail: info@ibbventures.de