The steel industry is one of the biggest emitters of global CO2 emissions. Furthering the decarbonisation of the global steel industry is instrumental in climate change mitigation.
The carbon footprint can be reduced by recycling steel from steel slag, a by-product of steel production. Magsort has brought to market a superior solution that can double the recovery rate compared to existing solutions, making the recycling of steel in slag financially viable and helping the steel industry reduce its carbon footprint. The processed slag may be used as a cement substitute, further helping the world reduce carbon emissions.
Together with Harsco International's Environmental division, with whom Magsort entered into an exclusive agreement earlier this autumn, Magsort has signed contracts with two steel producers in India.
Magsort's solution can also be used to recover metals such as copper, aluminium and gold from incinerator bottom ash, and is in use at waste-handling facilities in Finland and Sweden.
"Circular economy innovations are at the core as we are transforming our relationship with the earth and its resources. We are thrilled to be part of Magsort’s growth journey as it continues to promote resource efficiency and decarbonisation of the global steel industry”, says Ilkka Lassila, the COO of Valkea Growth Club.
Recycling steel from slag and valuable metals in bottom ash decreases the need for mining and production of virgin materials, leading to substantially lower carbon emissions globally.
”We are happy to contribute to Magsort's commercialisation as the solution has a credible potential in significantly decreasing carbon emissions globally", says Paula Laine, CEO of the Finnish Climate fund.
The financing, consisting of 5,2 MEUR equity and 10 MEUR credit facility (of which Ilmastorahasto's part is 4,5 MEUR), will be used for further commercialisation in the global steel industry and in waste-handling also outside the Nordic countries.
"We need to intensify the circular economy globally to reduce carbon emissions. With this funding we will be able to speed up our commercialisation process and hence also further the world's decarbonisation agenda", says Magsort's founder and CEO Niklas Törnkvist.
About The Finnish Climate fund
The Finnish Climate Fund is a special-assignment company owned by the Finnish State, focusing on combating climate change, boosting low-carbon industries and promoting digitalisation.
Valkea supports and accelerates the growth of the next generation of mission-driven startups. The goal is to build a cleaner future by revolutionizing energy, resource efficiency, and sustainability industries. Valkea is looking for start-ups with ideas about how this can be done and providing them with what they need to do it— expertise, development opportunities, funding, and co-working spaces. Valkea was founded by Fortum, a leading European clean energy company driving the change for a cleaner world.
Magsort is a decarbonization company. Its revolutionary solution makes it possible to extract all the metals left behind in steel slag while refining the remaining material into valuable components for low-CO2 cement.
For more information:
Link to Climate Fund's press release: https://www.ilmastorahasto.fi/en/magsort-climatefund-funding-target/
Link to Valkea's press release: https://valkea.club/news/valkea-invests-pioneering-circular-economy-technology-startup-magsort.