Khosla Ventures and Temasek Back Advanced Materials Maker Fortera

Fortera, a San Jose-based advanced materials manufacturer, has closed an $85 million Series C funding round to continue the deployment of its low-carbon cement technology, ReCarb.

Participants in this round of financing included Khosla Ventures and Temasek, along with new contributors such as Wollemi Capital, NOVA by Saint-Gobain, Presidio Ventures, and Alumni Ventures.

Fortera has raised several funding rounds to develop and scale its low-carbon cement technology. The company started with seed funding in 2016, though the specific amount hasn’t been disclosed. Fortera’s earlier funding rounds include a $20 million Series A round in 2019, led by Khosla Ventures, and a $30 million Series B round in 2021, led by Khosla Ventures and Temasek. These rounds provided additional capital to expand operations, build its first commercial plant, and prepare for large-scale production.

According to Fortera, the new capital will be used to scale its ReCarb process, which integrates with existing cement production facilities to capture CO2 emissions and convert them into a sustainable, ready-to-use cement product. The cement industry is responsible for approximately 8% of global carbon emissions, making it one of the largest industrial contributors to climate change.

This funding round closes against a backdrop of mounting pressure on the global cement industry to reduce its carbon footprint. Fortera’s ReCarb technology reduces carbon dioxide emissions by 70% per ton of cement produced compared to traditional methods. The company is able to integrate this technology with existing infrastructure—such as feedstocks, logistics, and capital investments—allowing for a more straightforward and cost-effective path to commercialization.

Fortera’s ReCarb Plant, located in Redding, California, is already operational, and the company plans to develop additional facilities to expand the production of its ReAct low-carbon cement. ReAct is a mineralized form of calcium carbonate produced by capturing and converting CO2 emissions from traditional cement production processes. It meets the technical standards of the American Society for Testing and Materials (ASTM) and matches the strength and durability of ordinary cement, making it a viable alternative for the construction industry. Fortera’s ReAct cement won the 2023 U.S. National Winner for Outstanding Projects by the Net-Zero Industries Awards and was named Green Builder Media’s 2024 Sustainable Product of the Year.

Fortera was co-founded in 2017 by CEO Ryan Gilliam. Through more than 100,000 hours of research and development, the company has amassed over 100 patents.

“Due to the scale of the industry, we won’t have an impact on emissions unless we have an economic pathway to expand globally,” said Mr. Gilliam. “With the launch of our first plant and the close of this funding round, we’re entering into the next phase of our development as a commercial project company to accelerate low- to zero-carbon cement deployment. It’s vital to have the financial means to put operations in place to commercialize our technology, and we are honored to have the backing and expertise of some of the most knowledgeable investment firms in project finance and the cement and concrete industry as we carve the path to zero CO2 cement.”

“Our investment in Fortera aligns with Saint-Gobain’s priority toward the decarbonization of industries and our commitment to working with startups that are moving the world forward with sustainable innovations,” said Basma Kharrat, vice president of external venturing at Saint-Gobain. “Fortera’s strategy of working within the existing framework of the cement industry has garnered support from a diverse group of investors who are keen to see rapid advancements in reducing carbon emissions. The $85 million funding round reflects a growing recognition of the urgent need to decarbonize heavy industries, particularly in sectors where emissions have been historically difficult to mitigate.” NOVA by Saint-Gobain is the venture arm of the French multinational corporation Saint-Gobain and supports startups that align with the company’s sustainability goals. 

The global cement industry is undergoing a transformation as companies and governments push for more sustainable construction materials. According to the International Energy Agency (IEA), the global cement industry needs to reduce its carbon intensity by 24% by 2030 to align with the 2015 Paris Agreement, which combats climate change by limiting global warming to below 2 degrees Celsius above pre-industrial levels. Technologies like Fortera’s ReCarb are seen as crucial to achieving these goals, offering a practical pathway to emissions reductions without necessitating a complete overhaul of existing manufacturing processes.

“To address carbon emissions in this challenging industrial sector, we need to make the best use of the resources already in place,” said Natalie Volpe, a director at Wollemi Capital. “Fortera does what previous green cement technologies have failed to do—it works with cement companies to provide an accessible solution to a cleaner industry. The compatibility with today’s ecosystem makes us confident that Fortera’s process is the most effective technology to decarbonize cement and achieve meaningful climate impact more quickly. We are pleased to bring Wollemi’s expertise in financing next generation infrastructure projects to support the development of future plants.” Wollemi Capital is a specialist climate-focused investment firm with offices in Sydney, Australia, and New York City.

Fortera’s competitors in the low-carbon cement space include companies such as Solidia Technologies, CarbonCure Technologies, Cemex, Heidelberg Materials, and Holcim. These companies are also exploring various methods to reduce the carbon footprint of cement and concrete, whether through CO2-curing processes, carbon injection, or new production methods. However, Fortera’s approach of integrating with existing infrastructure sets it apart in terms of scalability and economic feasibility.

Khosla Ventures was founded in 2004 by Vinod Khosla and is headquartered in Menlo Park, California. The firm makes investments in artificial intelligence, sustainability, and technologies that are at the forefront of scientific and engineering advancements. Frontier technologies typically involve breakthroughs in fields like artificial intelligence, biotechnology, robotics, quantum computing, nanotechnology, and advanced materials.

Temasek is a Singapore-based investment firm with interests in early-stage ventures, growth capital, and mature companies. The firm’s portfolio was valued at approximately $311 billion as of March 2024.