New CEO and £4M round boost steel decarbonisation push
Industrial decarbonisation start-up PeroCycle has appointed carbon capture veteran Grant Budge as its new chief executive – along with a £4 million seed funding round to support the pilot deployment of its breakthrough carbon recycling technology for steelmaking.
The University of Birmingham spin-out is aiming to tackle one of the most polluting sectors globally, with a novel system that recycles carbon dioxide emissions produced during steel manufacturing. The technology, based on a perovskite catalyst developed by Professor Yulong Ding and Dr Harriet Kildahl, converts CO2 into carbon monoxide, allowing carbon to be reused within existing steelmaking processes.
Budge, who brings three decades of experience in carbon capture and decarbonisation projects, joins at what he calls “a pivotal stage” for the business. “PeroCycle can reshape one of the world’s most emissions-intensive sectors,” he said. “Its technology stands out for its ability to cut carbon emissions from existing steelmaking infrastructure, a rare combination.”
A major emissions problem
Steel production accounts for roughly 8% of global CO2 emissions, around 3 gigatonnes annually, according to the International Energy Agency. The UK and wider European sector face increasing pressure from regulation, including the EU’s Carbon Border Adjustment Mechanism (CBAM), which penalises high-emissions imports.
PeroCycle’s closed-loop approach could provide a viable decarbonisation path without requiring full system overhauls, critical for blast furnace operations that dominate legacy steelmaking.
“The ability to recycle carbon dioxide within existing infrastructure is a scalable and practical solution to a huge challenge,” said Professor Ding, Chamberlain Chair of Chemical Engineering at the University of Birmingham. “This next stage of leadership and investment puts the company on track to deliver industrial impact.”
Funding to scale
The £4 million seed round will run from August into early 2026, supporting development of a pilot unit capable of processing 1 kilotonne of CO2 per year. Funding will also be used to grow the technical and commercial teams.
Owen Thompson, CEO of Cambridge Future Tech, PeroCycle’s co-founder and early investor, said the raise marked a “major step forward” in the company’s mission. “With Grant’s leadership and the momentum of this round, PeroCycle is well-positioned to deliver real-world industrial impact,” he added.
Backed by industry
Anglo American, a founding collaborator and investor in PeroCycle, reaffirmed its support. “Our investment reflects our belief in the potential of carbon recycling,” said Matt Walker, CEO of Anglo American’s Marketing business. “We look forward to this next phase bringing the technology closer to industrial application.”
By enabling in-process carbon recycling at steel-compatible temperatures, PeroCycle is targeting the decarbonisation of hard-to-abate emissions from crude steel production, which typically emits two tonnes of CO2 per tonne of steel.
With climate targets demanding significant cuts in steel emissions this decade, scalable technologies like PeroCycle’s could become a critical component of the global net-zero pathway.
