Finnish startup Reduciner has raised €3.6 million (~$4.2 million) to commercialize a new technology that converts captured CO2 into sustainable fuels and industrial raw materials.
The company, a spinout from VTT Technical Research Centre of Finland, is developing a high-temperature process designed to help industries utilize CO2 emissions rather than store them.
The funding round includes backing from Voima Ventures, Lifeline Ventures and the Mikko Kodisoja Foundation. Reduciner is now planning to build its first industrial-scale pilot facility, a 1MW plant in Finland.
Thus, the company aims to demonstrate how captured carbon can be turned into a commercially viable resource.
Technology Targets Hard-to-Abate Industrial Emissions
The process converts CO2 into carbon monoxide (CO), which can then be used as a feedstock for fuels and chemicals. Because CO is already compatible with existing industrial systems, the technology can be deployed without major infrastructure changes.
According to Reduciner, this allows for a faster and more cost-efficient transition away from fossil fuels. Unlike many carbon reduction solutions, the process is designed to be economically viable from the outset.
A key factor is the production of activated carbon as a co-product, which improves overall process economics and reduces reliance on subsidies.
The resulting synthesis gas can be used across a range of industrial applications, including the production of synthetic fuels such as methanol. Compared to conventional CO2-based processes, using carbon monoxide can improve efficiency and reduce the need for costly inputs such as hydrogen.
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The technology is particularly suited to sectors such as cement, lime, steel and pulp, where emissions are difficult to avoid. In the lime industry, for example, captured CO2 could be reused as fuel within the same production process, effectively closing the carbon loop.
“Most technologies that seek to replace fossil fuels require rebuilding infrastructure,” said Johanna Grönroos, co-founder and CEO of Reduciner.
She noted that the company’s approach allows emissions reductions to be achieved while maintaining existing systems. The technology has been developed over several years at VTT and has already been validated at pilot scale.
Reduciner began its commercialization phase in 2026, with plans for initial deployments in Finland and broader expansion before 2030. The development reflects growing interest in technologies that can both reduce emissions and create value from captured carbon.
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