Finnish startup converts factory emissions back into fuel

A Finnish startup, spun out from state-owned research center VTT, has secured €3.6 million in funding to build an industrial-scale pilot plant in Finland that transforms carbon dioxide emissions from factories into synthetic fuel, Yle reports.

The technology uses electricity and biochar to convert captured CO₂ into syngas (synthesis gas), a carbon-neutral fuel that could replace fossil fuels in hard-to-electrify industries like steel and cement production. The process also produces activated carbon as a byproduct, used in filtration systems for liquids and gases.

The company, Reduciner, emerged from VTT’s startup incubator after years of research into carbon capture and industrial electrification. According to Eemeli Tsupari, Reduciner’s technology lead and a former VTT researcher, the method was inspired by a factory manager in Tornio who proposed using electricity to generate syngas—a fuel already in use at the plant.

“In theory, syngas can be recycled indefinitely in factories,” Tsupari explained. “It’s not a completely closed loop because biochar introduces new carbon, but it allows factories to eliminate fossil fuels without costly process overhauls.”

The pilot plant’s location has not been disclosed, but the company aims to target industries where CO₂ emissions are unavoidable, such as cement production, where limestone releases CO₂ regardless of the fuel used. Excess syngas could also be sold as a raw material for carbon-neutral fuels like methanol, suitable for aviation and shipping—sectors where electrification remains challenging.

Reduciner claims its method is already cost-competitive with fossil fuels at current carbon pricing and electricity costs. The €3.6 million funding will support construction of the pilot facility, with plans to scale the technology for broader industrial adoption.