Northstar Ventures Leads £3 Million Investment in Low Carbon Materials to Decarbonize Construction

Northstar Ventures has spearheaded a £3 million funding round to enhance the growth and production capacity of Low Carbon Materials (LCM), a Durham-based company focused on decarbonizing the construction industry. This investment is a crucial step in LCM’s mission to reduce carbon emissions in the built environment, which contributes approximately 25% of the UK’s total emissions. With the UK’s net-zero targets in mind, the construction sector has been slower to address its carbon footprint, making LCM’s innovative, sustainable alternatives to traditional building materials essential for industry transformation.

Northstar Ventures has supported LCM since its inception in 2020, shortly after the company emerged from Durham University. This latest funding round, part of the North East Innovation Fund backed by the European Regional Development Fund, marks the third investment Northstar has made in LCM. The round also features contributions from Ada Ventures and Green Angel Ventures, with strategic insights provided by Deloitte and Innovate UK’s Future Economy Investor Partnership program.

LCM currently offers two carbon-negative aggregates, OSTO® and ACLA®, aimed at significantly reducing the carbon footprint of concrete and asphalt. These sustainable products are designed to replace traditional materials in construction, providing greener alternatives. LCM has already utilized ACLA® in several projects across the UK, including a road resurfacing pilot on the M11 in partnership with National Highways, Tarmac, and Skanska. Additionally, ACLA® was featured in an innovative road surfacing project on Elvet Hill in Durham City earlier in 2024, which received considerable media attention.

The leadership team at LCM, including CEO Natasha Boulding and co-founders Phil Buckley and Scott Bush, has gained national and international acclaim for their commitment to reducing the construction industry’s carbon impact. In 2022, LCM was a finalist for the Earthshot Prize, a prestigious global competition that highlights solutions for environmental restoration. The company also received finalist recognition in the Highways UK Excellence Awards for 2024 and accolades from leading climate organizations.

Tom O’Neill, Investment Manager at Northstar Ventures, expressed enthusiasm for the ongoing partnership with LCM, noting the company’s pivotal role in decarbonizing the built environment. He highlighted the importance of this sector in achieving net-zero goals and emphasized that LCM’s innovative solutions are vital for driving progress. Since 2020, Northstar has witnessed significant growth at LCM, including the launch of new products and the scaling of its operations.

O’Neill also underscored Northstar’s broader mission to invest in companies addressing global challenges, believing that innovation and investment can foster positive change. LCM exemplifies how businesses can drive meaningful impact for both people and the planet. With this latest funding, Northstar Ventures and its co-investors aim to propel LCM’s growth, facilitating further development of its sustainable building materials and contributing to a greener future for the UK and beyond.