Concrete as a carbon sink – Carbonaide expands into international markets
A Finnish company Carbonaide offers a solution for the construction industry that sounds too good to be true: its technology enables the storage of carbon dioxide in concrete. “The direction is clear – concrete is no longer just a source of emissions; it can become a permanent carbon sink,” says CEO Tapio Vehmas.
The construction industry accounts for as much as 40% of global carbon dioxide emissions. The largest emissions arise from the most common construction material, concrete, and the cement it uses. Producing cement generates a large amount of carbon dioxide as a result of the processing and combustion of raw materials.
“When I started leading this project, I also thought it sounded too good to be true. Cement is one of the most polluting materials in the world. We replace it with carbon dioxide, which is abundantly available,” says Tapio Vehmas, CEO of Carbonaide.
Growth driven by market demand
The Finnish company, started by VTT Technical Research Centre of Finland, has a technology that is now ready for scaling, and demand is skyrocketing, both in Finland and internationally.
“Market demand is the biggest driver of growth for us. Our expansion hinges on how quickly we can acquire customers and how our investment expenditure evolves. Our technology has reached a stage where it can be sold. We have been refining this for years, and it is now ready for industrial use,” Vehmas says.
Carbonaide does not build its own factories. Instead, it sells its technology for use on existing concrete production lines.
“Our process fits directly into concrete production lines, which makes it easy to deploy. In practice, it is a single large air conditioning unit featuring patented technology. It is not particularly expensive to manufacture or tied to a specific location,” Vehmas explains.
Carbonaide is in a strong position because the field is relatively unusual, with very few competitors. Using carbon dioxide in concrete is still a nascent industry.
“Many companies make low-carbon concrete, but there are only a handful of operators that use carbon dioxide and store it in concrete. We have two real competitors, one of whom has almost the same process as ours in Canada, but ours is more efficient,” Vehmas says.
Nordic countries and Central Europe are the first targets
Carbonaide has already signed its first commercial agreements in Finland and aims to gain its first international customers in 2025. The company has opened a sales office in Stockholm and aims to start up ten production units in the Nordic countries by 2026.
“We may be a little behind schedule. We have numerous leads, but ultimately, it comes down to how quickly we can close the sale.”
The company also has its sights set on Central Europe, where carbon dioxide capture is more advanced than in Finland and interest in low-carbon solutions is on the rise.
“In the past, the problem was that captured carbon dioxide was expensive. Carbon dioxide suitable for industrial use is now on the market. Its availability is improving, and its price is falling. At the same time, the price of cement has risen because production is very energy-intensive,” Vehmas says.
“Furthermore, the EU’s low-carbon regulations will eliminate the emission quotas for cement by 2035, forcing companies to look for alternatives. This will generate strong demand for our solution.”
Carbonaide is also exploring growth opportunities in India and the Middle East, where significant construction activity is present.
Seed funding created a pilot line
Carbonaide is seeking to expand its operations through an ongoing financing round. The company utilised its previous seed funding of EUR 1.8 million to establish a pilot production line in Hollola and acquire intellectual property rights from VTT Technical Research Centre of Finland.
Tapio Vehmas has 4 tips for applying for growth funding
- Identify the opportunities for growth: “Before applying for funding, it is important to assess whether the business is truly scalable and whether it can withstand expansion. Investors are looking for projects that have the potential to expand profitably.”
- Select partners carefully: “A good partner is one who is also willing to invest their own money. Be cautious of those who only want shares in exchange for their advice.”
- Use public funding sources: “Business Finland has supported us a lot. Public funding helps reduce risk and attract private investors.”
- Get expert advice on EU funding: “EU funding is a great opportunity, but it is worth using good consultants to apply for it. The process is complex, and the competition is tough.”
Vehmas is not ashamed to admit that securing funding is not his strongest suit.
“Fortunately, we now have a commercial director who knows how to handle this. I am more of a researcher, and I am interested in technology, getting into production and developing factory technology.”
“More work than we can handle”
Carbonaide operates on a hybrid model where employees work remotely, but regular in-person meetings are also essential. Vehmas says that the company has “six and a half” employees.
“One employee is a part-time pensioner. This year, we are likely to recruit two additional people. We have more work than we can handle.”
Where will Carbonaide be in five years?
“I foresee us having a decent number of personnel by then. We will be able to bind several thousand tonnes of carbon dioxide annually, and we will likely have dealers outside of Europe as well.
Text: Mikko Viljanen / Photos: Liisa Takala