PeroCycle Raises €4.5M to Decarbonise Steelmaking

British industrial startup PeroCycle has opened a €4.5 million Seed round to advance its technology designed to decarbonise steelmaking. The Cambridge-based company secured the funding from investors including Cambridge Future Tech and Anglo American. The capital injection is aimed at accelerating the company's commercial growth and pilot deployment.

PeroCycle was founded in 2024 as a spin-out from the University of Birmingham and venture builder Cambridge Future Tech. The company also announced the appointment of Grant Budge, a veteran of carbon capture projects, as its new CEO to lead its commercial expansion.

Targeting In-Process Carbon Recycling

The company's technology uses a perovskite-based catalyst within a proprietary reactor system. This process converts carbon dioxide into carbon monoxide at temperatures compatible with blast furnaces. Consequently, it creates a closed-loop carbon pathway, reducing the steel industry's reliance on fossil feedstocks.

The new funding will directly support the development of PeroCycle’s first pilot unit. This initial system is designed to process 1 kilotonne of CO₂ per year. Additionally, the company will expand its technical and commercial teams.

This initiative addresses a critical challenge, as the steel industry accounts for approximately 8% of global CO₂ emissions. The sector faces increasing regulatory pressure from policies like the Carbon Border Adjustment Mechanism (CBAM). This push is fueling a wider green steel revolution, with other companies like GravitHy and H2 Green Steel also developing solutions. The trend extends beyond steel, with parallel efforts to decarbonise concrete gaining traction.