Durham University spinout Low Carbon Materials (LCM) has secured £3M growth acceleration funding.
LCM is on a mission to decarbonise concrete and asphalt – huge contributors to the world’s carbon emissions. LCM designs and manufactures carbon-negative aggregates, the essential crushed stone, sand, or gravel components that give concrete and asphalt their strength and stability.
The company has successfully closed a £3M Growth Acceleration Round led by Ada Ventures, with additional participation from Green Angel Ventures (GAV), Northstar Ventures, an Innovate UK grant, and sponsorship and skill-based support from Deloitte.
This funding round will propel LCM’s rapid expansion, enabling the company to scale its operations and accelerate its impact. The construction sector is responsible for a significant portion of global carbon emissions. The company has gained widespread support and recognition, including being named a finalist for the prestigious Earthshot Prize in the “Fix Our Climate” category.
Matt Penneycard, Co-founding Partner at Ada Ventures, the lead investor in this round, expressed their confidence in LCM’s potential:
“At Ada, we invest in people and ideas that have the potential to change the world. LCM is on track to do exactly this. Concrete in the built environment accounts for 8% of global carbon emissions and 25 million tons of asphalt are laid in the UK every year. There’s a huge opportunity to develop and introduce greener alternatives to market, and it’s a space few are innovating in. LCM offers large construction businesses a simple and scalable way to reduce their CO2 output, delivering these solutions in a scalable market-leading way. It’s a privilege to partner with them as they continue their upward trajectory.”
Addressing the urgency of climate change
With climate change targets becoming increasingly stringent, major contributors such as construction projects are facing heightened scrutiny.
Natasha Boulding, CEO of LCM, Emphasises the Market Opportunity:
“As essential building blocks for our cities and transportation networks, concrete and asphalt require a greener approach to production to minimise their environmental impact. We’re seeing tremendous interest and opportunity, both in the UK and abroad. This funding is a crucial step to support our rapid growth. It also supports preparing for future funding to enable us to meet the ever-growing global demand for our decarbonisation solutions. Our technologies offer a simple and scalable way to transform the concrete and asphalt industry. We’re excited to be backed by these incredible organisations.”
Real-world Projects Showcase Market Adoption
LCM’s flagship product, OSTO®, a lightweight aggregate, is transforming concrete production by providing a sustainable alternative to traditional lightweight aggregates. Simultaneously, ACLA®, LCM’s carbon-negative aggregate for asphalt, is actively contributing to the decarbonisation of road infrastructure across the UK.
High-profile collaborations, such as a resurfacing project on the M11 with National Highways, Skanska, and Tarmac, highlight the industry’s growing confidence in ACLA®’s potential to transform road construction. Numerous decarbonisation road projects with local councils, alongside partnerships with key players like Kenson Highways, MGL Group, Breedon, Tarmac and Milestone Infrastructure, showcase the demand and widespread adoption of LCM’s solutions.
Strategic partnerships powering LCM’s growth
In 2022, LCM was named a finalist for The Earthshot Prize. They gained access to a global network of experts, collaborators, and resources focused on scaling impactful climate solutions.
The prize is accelerating LCM’s decarbonisation efforts and expanding the reach of its innovative solutions.
Deloitte is a member of The Earthshot Prize Global Alliance. The alliance is a community of businesses that offer expertise, raise capital and establish networks that winners and finalists couldn’t otherwise access.
Smruti Naik-Jones, Chief Sustainability Officer of Deloitte UK and North & South Europe says:
“Reaching net zero will require the global economy to decarbonise as part of a connected system.”
“We are using our skills, influence and targeted investment to catalyse environmental and social impact across the key areas of the energy transition, circularity, sustainable food systems and nature restoration – including supporting LCM as they scale innovative low carbon solutions with impact.”
Support to spinout
LCM received support from Northern Accelerator and Durham University on their spinout journey. This included attending our Future Founders course and benefitting from proof-of-concept funding.
