A Finnish deep tech startup spun out of VTT Technical Research Centre of Finland is commercialising a technology that converts captured carbon dioxide directly into industrial fuel — without rebuilding a single pipe or furnace.
Reduciner, originating from VTT, is commercialising a novel high-temperature technology that enables industrial companies to turn captured carbon dioxide into usable fuel and valuable industrial raw materials. The company raised €3.6 million in seed funding, with investment from Voima Ventures, Lifeline Ventures, and the Mikko Kodisoja Foundation, and VTT contributing the underlying technology and intellectual property as an in-kind investment.
At the heart of the innovation is a thermochemical process based on the Reverse Boudouard reaction — a well-understood chemistry that Reduciner has engineered into something practically new. CO₂ reacts with biochar using renewable electricity at high temperatures, yielding two commercially valuable outputs: carbon monoxide (CO) and activated carbon. The process achieves over 90% CO₂-to-CO conversion efficiency.
The carbon monoxide produced can be fed directly back into industrial combustion systems as fuel, or used as a feedstock for synthetic fuels such as methanol, diesel, and aviation fuel. By producing carbon monoxide directly, the system reduces the amount of hydrogen needed in downstream fuel production, helping improve efficiency and lower costs compared with more conventional CO₂-based fuel pathways.
Critically, because carbon monoxide is already compatible with existing industrial combustion systems, the solution enables companies to reduce emissions without costly infrastructure changes. This is what sets Reduciner apart from most decarbonisation technologies, which typically require significant capital investment before delivering any benefit.
The second output — activated carbon — strengthens the business case further. With a surface area exceeding 1,000 m²/g, the biogenic activated carbon produced is suitable for water and gas purification, pharmaceutical applications, and energy storage in supercapacitors. It serves as a high-value co-product that improves overall process economics from day one, reducing dependence on policy subsidies or high fossil fuel prices.
The technology is aimed squarely at hard-to-abate sectors. It is particularly suited to cement, lime, steel, and pulp, where emissions are difficult to avoid. In the lime industry, captured CO₂ could be reused as fuel within the same production process, effectively closing the carbon loop. According to Reduciner’s CTO Eemeli Tsupari, CO₂ emissions from the lime and cement industries alone exceed those from aviation and maritime shipping combined.
The commercialisation 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. The immediate goal is a 1 MW industrial pilot facility in Finland.
VTT’s role goes beyond providing the intellectual foundation. As Antti Arasto, Vice President for Industrial Energy and Hydrogen at VTT, put it: “At VTT, we don’t innovate for the lab — we innovate for the world.” The institute transferred not just research findings but the full technology IP to Reduciner as a founding investment, a model that reflects a deliberate strategy of turning Nordic research into deployable industry solutions.
For heavy industry facing tightening carbon regulations and rising input costs, Reduciner offers something rare: a decarbonisation pathway that pays for itself.
