Through a joint partnership Singaporean Temasek and Blackrock have helped raise $69m of capital to expand a carbon removal strategy by Swiss provider Neustark globally.
The Berne-based carbon removal developer announced that it has raised $69 million in a funding round led by Decarbonization Partners, a partnership between BlackRock and Temasek, other investors include UBS, Blume Equity Holcim, Siemens Financial Services, Verve Ventures, and ACE Ventures.
With the new capital, Neustark aims to build its expansion across the European, North American and Asian-Pacific markets.
The funding round will help support Neustark’s permanent removal of 1 million tons of CO2 in the year 2030 through the company’s new strategy. Neustark says that its approach allows the removal of carbon dioxide from the atmosphere by capturing CO2 at point source, and then binding it in mineral waste streams via an accelerated mineralisation process.
In April, the Decarbonization Partners Fund I announced a final close of $1.4bn, surpassing its fundraising target. Its investment in Neustark is its first in Europe.
“Neustark not only helps organisations integrate carbon removal to address their hard-to-abate emissions, but their solution also contributes to decarbonising the construction industry.
“With their unique business model that seamlessly integrates two existing and mature industries without disrupting their day-to-day operations, Neustark has established themselves as one of the global leaders in high-quality durable carbon dioxide removal with a solution that is removing carbon dioxide from the atmosphere today,” said Meghan Sharp, global head and chief investment officer of Decarbonization Partners.
According to Neustark, Blackrock, Temasek and Blume Equity join other investors who have backed the carbon removal provider, including UBS, Holcim, Siemens Financial Services, Verve Ventures, and ACE Ventures.
Currently, Neustark has 19 carbon capture and storage plans in operation across Switzerland, Austria, Liechtenstein and Germany.
“We turn the world’s largest waste stream – demolition concrete – into a carbon sink.
"The carbon dioxide removal market is experiencing substantial growth, driven by high-quality and durable carbon removal solutions, and a surging demand for trusted carbon credits," said Johannes Tiefenthaler, co-CEO and founder at Neustark.
