How UP Catalyst's circular carbon solution challenges Chinese dominance

When you think of tech around carbon emissions, you probably think of carbon capture and storage. But we're currently seeing the rise of novel technologies that turn CO2 emissions from pollutants to be captured and stored into physical ingredients with the potential to become a valuable resource in the circular carbon economy. 

It's not every day that I hold a piece of graphene in my hand. But Estonian startup UP Catalyst turns CO2 emissions into graphite, graphene, and carbon nanotubes, transforming material manufacturing.

Founded in 2019 by Gary Urb and Kätlin Kaare, the company aims to address the growing demand for environmentally friendly materials in various applications, including battery technologies and construction.

Spun out of the University of Tartu, the company employs a proprietary technology known as Molten Salt Carbon Capture and Electrochemical Transformation (MSCC-ET). This method — powered by renewable energy sources such as wind and solar — utilises CO₂-rich flue gases from industrial sources as feedstock, converting them into valuable carbon materials. 

I spoke to UP Catalyst CEO Gary Urb, to learn more about it.

With the global demand for graphite expected to outstrip supply, creating an estimated 700,000-ton annual deficit by 2030, 

According to Urb, Europe currently relies on imports for 99 per cent of its graphite needs, with China being the leading producer. This results in supply chain vulnerabilities for other countries, particularly in critical industries like electric vehicle (EV) battery manufacturing.

Further, China's control over graphite supplies gives it considerable geopolitical leverage, which it can use in trade disputes or as a response to economic security policies implemented by other countries.

Urb shared: 

"Battery manufacturers are actively seeking local alternatives to reduce these risks. Graphite is a crucial component of lithium-ion batteries, accounting for 30 per cent of their volume.”

UP Catalyst's technology offers a homegrown, sustainable source of critical raw materials. The company can make graphite almost identical to natural graphite mined in China and graphite made from petrochemical sources. 

The shift to circular raw materials developed by UP Catalyst could contribute to avoiding 118.7 megatons of CO2 emissions annually by 2030, which would have a substantial environmental impact.  

Urb detailed:

"By using our graphite, manufacturers can reduce their carbon footprint and avoid the transportation emissions associated with importing materials. Additionally, our technology can help Europe achieve its ambitious goal of having 40 million electric vehicles by 2030."

However, the newness of circularity and the use of CoO2 to make new products means that there's work to be done to incentivise companies to upcycle their carbon emissions in this way. As Urb notes: 

"There are subsidies available to encourage carbon capture and utilisation (CCU) projects. However, the regulatory framework doesn't currently recognise the conversion of CO2 into solid carbon as a form of utilisation.

To address this, we're working on certifying our method to potentially earn carbon credits for the CO2 we utilise. This aligns with the various CCU technologies currently being developed."

That said, the company will profit more from selling the end product to lithium-ion battery manufacturers.  

Further, the company's carbon nanomaterials are utilised in supercapacitors and other energy storage devices, enhancing their performance due to high energy density.

UP Catalyst's carbon materials can also reinforce concrete, making it stronger and more sustainable, which is valuable in the construction sector. It can also improve fire resistance, corrosion resistance, and mechanical strength, making them suitable for various applications in the paints and coatings industry.

Urb notes: 

"While our production costs are higher than those of our Chinese competitors, we expect them to become competitive with imported graphite as we scale up our operations. 

We're currently evaluating the optimal location for our large-scale production facility, considering factors such as logistics and access to green electricity."

UP Catalyst's initial pilot factory will be in Estonia, but the location of its large-scale production facility will depend on factors such as logistics and access to green energy.

"Green electricity is crucial for producing carbon-neutral or carbon-negative products. Using electricity generated from fossil fuels would negate the sustainability benefits of our technology.

Therefore, we're focusing on sourcing green electricity from renewable sources like hydroeectricity and wind power."

Estonia's local green energy production is limited. The country currently imports electricity from Finland and Poland, which limits its ability to have an active, more sustainable manufacturing sector.

Urb asserts:

"This affects not only our company but other businesses and industries in Estonia. It's particularly concerning as the country moves towards a more electrified future with electric vehicles and other energy-intensive technologies.

To address this issue, we're exploring alternative sources of CO2 and electricity. We've recently established a pilot facility near a waste-to-energy plant in Estonia that could provide us with CO2 and electricity. We're also open to collaborating with partners in other countries to access biogas or other CO2 and renewable energy sources."

And there's some good news for Estonia's green energy future. In September, renewable energy producer Sunly raised €300 million in debt financing to accelerate the construction of 1.3 GW of solar, wind, storage, and hybrid parks across the Baltics and Poland. 

In the meantime, Catalyst is up hard at work building generation three reactors.

"Our next step is to scale up to generation four reactors, measuring approximately 20-30 metres long and 6 metres wide."

A full-scale factory will house multiple generation four reactors, aiming to produce 60,000 tons of carbon materials annually by 2030. This factory could also utilise over 220,000 tons of CO2.

And this is just the beginning for the company. 

Urb detailed:

"Given that a single factory can produce 60,000 tons of carbon per year, and Europe has around 50 battery manufacturers, there's a potential need for 50 carbon factories across the continent."

Lead image: Freepik.