Deep tech startup Reduciner introduces novel technology to turn captured carbon into sustainable fuels

This article was originally published on the News page of VTT, a Finland-based research, development and innovation partner and one of the leading research organizations in Europe. It is being shared here for Ahead of the Curve readers interested in technology that can help manufacturers remain competitive and sustainable.

As energy costs rise in the renewable fibers industry, marketable side streams become an area of increasing interest. A new start-up from Finland's VTT Research consortium may help pulp companies remain both sustainable and profitable.

Reduciner, a deep tech startup originating from VTT, is commercializing a novel high-temperature technology that enables industrial companies to turn captured carbon dioxide (CO₂) into usable fuel and valuable industrial raw materials. The company raised EUR 3.6 million (about US$4.2 million) in its first funding round, consisting of equity funding from Voima Ventures, Lifeline Ventures, and Mikko Kodisoja Foundation. In addition, VTT has transferred the underlying user rights to the technology and IP as an in-kind investment to the newly established company.

Reduciner’s innovative technology addresses one of the most difficult challenges in climate change mitigation: how to turn unavoidable industrial emissions into an asset. For industrial customers, including pulp producers, it offers a cost-efficient way to profitably use captured CO₂, reduce dependence on fossil fuels, and improve competitiveness in a low-carbon economy.

Reduciner’s technology involves a proprietary thermochemical process that efficiently converts CO₂ into carbon monoxide (CO), using renewable electricity and biogenic carbon. The innovation allows indirect electrification of combustion processes, enabling large-scale production of sustainable fuels and chemicals and a significant reduction of industrial carbon dioxide emissions globally. Since CO is already compatible with existing industrial systems, the solution allows companies to reduce emissions without costly infrastructure changes.

Unlike many carbon reduction technologies, Reduciner’s solution is designed to be economically viable from the outset. A key driver of this is the production of activated carbon as a valuable co-product, which improves overall process economics and reduces reliance on policy incentives or rising fossil fuel prices. Activated carbon is typically used in water and gas purification, and due to tightening regulations, its use is expected to increase heavily in the near future.

“Most technologies that seek to replace fossil fuels with more sustainable ones require rebuilding of infrastructure. Reduciner’s technology converts CO₂ into CO, which is compatible with existing machinery, allowing the solution to be deployed faster and more cost-efficiently,” says Johanna Grönroos, co-founder and CEO of Reduciner. “What makes Reduciner stand out... is that with our process, the sustainability impacts are reached profitably from the very beginning while also unlocking significant market potential.”

The technology produces synthesis gas rich in CO, which can be used in a wide range of industrial processes and as a feedstock for producing synthetic hydrocarbons, for example methanol. Compared to production of hydrocarbons by conventional CO₂-based processes, using carbon monoxide significantly improves efficiency and cost-effectiveness, and reduces the need for costly inputs such as hydrogen, leading to a substantial improvement in overall process profitability.

“Reduciner stands out because it is already doing what many industrial climate companies can so far only promise on paper: validating the technology while advancing commercial discussions and solving real customers' problems,” says Pontus Stråhlman, partner at Voima Ventures.

The technology is particularly well-suited for hard-to-abate heavy industry sectors such as lime, cement, steel, and pulp. The lime industry, for example, currently uses expensive fuels and produces unavoidable carbon dioxide emissions. However, the carbon dioxide can be captured from the lime kiln, processed with Reduciner’s technology, and used as fuel in the same kiln, closing the carbon loop. Lime is one of the most extensively used materials in the world, and the industry thereby contains vast emission abatement potential.

The technology is based on several years of research at VTT and has been validated through pilot-scale testing. The commercialization phase began in 2026 and includes small-scale demonstration installations, with the first industrial-scale deployments in Finland, and broader international expansion targeted before 2030.

VTT’s role is to accelerate growth, renew industries and strengthen resilience through technology and innovation. Establishing new startups is one of its means of creating impact, and Reduciner is an excellent example of this. "At VTT, we don’t innovate for the lab—we innovate for the world. Our work is guided by a clear principle: technology must reach the market to make a real difference,” says Antti Arasto, vice president, Industrial Energy and Hydrogen at VTT.

Readers interested in learning more about Reduciner can visit www.reduciner.com or contact Antti Arasto at antti.arasto@vtt.fi; or visit vttresearch.com to learn more about VTT.