Finnish startup Reduciner announced it has developed a novel technology to convert captured carbon dioxide into sustainable fuels and industrial raw materials, aiming to help heavy industries reduce emissions while maintaining economic competitiveness.

The company, a spinout from the VTT Technical Research Centre of Finland, said it raised 3.6 million euros ($3.9 million) in its first funding round. Investors include Voima Ventures, Lifeline Ventures and the Mikko Kodisoja Foundation, while VTT contributed intellectual property rights as part of the company’s formation.

Reduciner’s proprietary process uses a high-temperature thermochemical method to convert CO₂ into carbon monoxide using renewable electricity and biogenic carbon. The resulting carbon monoxide can then be used to produce synthesis gas, a key input for fuels and chemicals such as methanol.

Company leaders said the approach enables “indirect electrification” of industrial processes and allows companies to integrate the technology into existing infrastructure without major modifications, reducing costs and accelerating deployment.

“Most technologies that seek to replace fossil fuels require rebuilding infrastructure,” said Johanna Grönroos, co-founder and CEO. “Our solution is compatible with existing machinery, allowing it to be deployed faster and more cost-efficiently.”

Unlike many carbon capture technologies that rely heavily on subsidies, Reduciner said its model is designed to be economically viable from the outset. A key factor is the production of activated carbon as a co-product, which is widely used in water and gas purification and is expected to see growing demand under tighter environmental regulations.

The technology is particularly aimed at hard-to-abate industries such as cement, lime, steel and pulp. In sectors like lime production, where emissions are difficult to eliminate, captured CO₂ can be recycled into fuel, effectively creating a closed carbon loop.

“Emissions from the lime and cement industries exceed those from aviation and shipping combined,” said co-founder and CTO Eemeli Tsupari. “This technology enables site-by-site replacement of fossil fuels, depending on access to renewable electricity.”

The company plans to build a 1-megawatt pilot facility in Finland as part of its commercialization strategy, with initial demonstration projects beginning this year and broader international expansion targeted before 2030.

Investors said Reduciner stands out for progressing beyond early-stage research to validation and commercial engagement with customers.

The technology is based on several years of research at VTT, which said supporting startups like Reduciner is key to bringing innovations to market and accelerating industrial decarbonization.

Reduciner said the development comes as industries face increasing pressure to cut emissions while maintaining competitiveness in a transition to a low-carbon economy.

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Finnish startup Reduciner unveils technology to turn captured carbon into sustainable fuels

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