British start-up Perocycle opens £4 million seed round to decarbonise steelmaking. The partner company of mining group Anglo American has developed a process that allows CO2 to be recycled in blast furnaces. A new CEO has also joined the team.
Perocycle, an industrial decarbonisation venture advancing closed-loop carbon recycling for steelmaking, has appointed Grant Budge as CEO. The announcement coincides with the opening of a £4M seed round to fund pilot deployment and accelerate commercial growth.
Grant brings 30 years of experience leading carbon capture projects and advising on decarbonisation across energy and heavy industry. He has raised significant public and private funding and led delivery of large-scale CCS infrastructure. His appointment signals a new phase of commercial growth for Perocycle as it advances towards pilot-scale deployment.
“Perocycle can reshape one of the world’s most emissions-intensive sectors. Its technology stands out for its ability to cut carbon emissions from existing steelmaking infrastructure - a rare combination. I’m thrilled to join at this pivotal stage.” said Grant Budge.
Novel carbon recycling technology using a perovskite-based catalyst
Perocycle is built on breakthrough research by Professor Yulong Ding and Dr Harriet Kildahl at the University of Birmingham. The company was spun out by the University of Birmingham and Cambridge Future Tech, a deep tech venture builder and early investor, in collaboration with Anglo American to commercialise its novel carbon recycling technology. Using a perovskite-based catalyst and proprietary process and reactor system, it converts carbon dioxide into carbon monoxide, providing a closed-carbon-loop approach to deep decarbonisation within the steelmaking process.
The steel industry is responsible for around 8% of global CO₂ emissions, with more than 3 gigatonnes produced annually. In the UK, the sector is grappling with rising costs and industrial restructuring, while across Europe, steelmakers face mounting emissions pressure. Carbon recycling technologies like Perocycle offer a critical route to low-carbon, commercially viable steel production — particularly as the Carbon Border Adjustment Mechanism (CBAM) begins to reshape international competitiveness.
The £4 million seed round will support the development of Perocycle’s first pilot unit, with a targeted capacity of 1 kilotonne of CO₂ processed per year. With the funding, the company will also expand its technical and commercial team.
“This is a major step forward for Perocycle’s mission to decarbonise steel from within," said Owen Thompson, CEO and co-founder of Cambridge Future Tech. "From co-founding and building the company to now investing in this round, we’ve supported its journey from the very beginning. With Grant’s leadership and the momentum of this raise, Perocycle is well-positioned to deliver real-world industrial impact"
A scalable pathway to deep decarbonisation
“Recycling carbon dioxide within steelmaking infrastructure presents a scalable pathway to deep decarbonisation in one of the world’s most hard-to-abate sectors.” said Professor Yulong Ding, founding Chamberlain Chair of Chemical Engineering at the University of Birmingham “Advancing this technology to industrial deployment requires the right leadership and investment and this next stage puts both in place.
“Anglo American is committed to working with like-minded partners to make meaningful steps toward lower-emission steelmaking. Our investment in Perocycle reflects our belief in the potential of carbon recycling for this purpose. We look forward to seeing this next phase of development bring the technology closer to industrial application,” said Matt Walker, CEO of Anglo American’s Marketing business.
By enabling in-process carbon recycling at blast furnace-compatible temperatures, Perocycle’s technology offers a practical route to decarbonisation, addressing a key need in a sector where each tonne of crude steel can emit around 2 tonnes of CO₂. With emissions from steelmaking needing to fall within the next decade to align with net-zero pathways, scalable industrial solutions like Perocycle’s are critical to the global climate response.
Source: University of Birmingham
