Northstar Ventures has invested in a North East climate tech company.
Low Carbon Materials (LCM) have received £3 million funding to scale production capacity and accelerate growth in another important milestone in their journey to decarbonize the construction industry.
The built environment sector accounts for 25% of the UK’s carbon emissions and reducing emissions from the sector will be a crucial component of achieving net zero.
To date, the industry has been one of the slower sectors to reduce emissions, meaning the need to adopt innovative solutions, such as those provided by LCM, is acute.
The Durham-based company with a national reach have secured £3 million in investment from existing investors Northstar Ventures, via the North East Innovation Fund supported by the European Regional Development Fund, in a round led by Ada Ventures, with additional funding from Green Angel Ventures, alongside sponsorship and skill-based support from Deloitte and Innovate UK’s Future Economy Investor Partnership programme.
Northstar first invested in LCM in 2020, shortly after the Company spun out from Durham University, and has supported the Company in two subsequent rounds of funding.
LCM currently produces two industry-transforming carbon negative aggregates, OSTO® which lowers the carbon footprint for concrete by significant amounts and ACLA® which performs the same function in asphalt.
These sustainable solutions replace traditional materials, providing greener alternatives to the components used in the construction sector.
ACLA® is currently being used in several projects nationally with the product included in a road-resurfacing pilot project of the M11 in a collaboration with National Highways, Tarmac and Skanska.
ACLA® was used by Durham County Council and MGL Group for a first of a kind road surfacing project on Elvet Hill in Durham City earlier in 2024 which received significant local press coverage.
The Company is led by co-founder and CEO, Natasha Boulding, alongside co-founders Phil Buckley and Scott Bush, who met at Durham University whilst completing their PhDs.
LCM were finalists for the prestigious Earthshot Prize, a global competition to find and grow solutions to repair the planet, in 2022. They are currently finalists in the Highways UK Excellence awards for 2024 and have received international recognition for their work from various high profile climate groups.
Tom O’Neill, Investment Manager at Northstar Ventures, said: “We are delighted to support LCM with further funding and proud to support the company in their mission to decarbonize the built environment sector, which is critical to achieve net zero.
“We have been invested in LCM since 2020 and have seen the Company develop significantly since then as they launch new products and scale up their commercial operations.
“Northstar invests in companies and teams seeking to tackle global challenges and we believe that innovation and funding can be harnessed to create a positive impact for people and the planet.
“LCM is a prime example of this in action, and we are excited to be part of the next stage of their exciting journey.”