Concretene has raised £4.5 million in the first close of its Series A funding round to scale up ‘Manchester graphene’ technology.
The company – a spinout from the University of Manchester – is developing a circular manufacturing programme using local wastewater biogas from United Utilities as a feedstock for carbon-negative graphene at multiple-tonne scale in Manchester.
That ‘Manchester graphene’ can then be used to reduce the carbon-footprint of concrete assets for the water sector and wider construction industry.
The round includes £2m from NPIF II – PXN Equity Finance, which is managed by PXN Ventures as part of the Northern Powerhouse Investment Fund II, with investment also coming from Concretene’s existing backers LocalGlobe and Molten Ventures.
LocalGlobe backed Concretene in 2022, followed by Molten and Arup, the global engineering consultancy, which supports technical development and industry adoption.
The funding will support industrial-scale admixture manufacturing, scaled concrete trials with industrial partners and the development of the Manchester graphene programme.
In laboratory and previous scaled trials, Concretene’s admixture technology has demonstrated the potential to remove 10-20% of cement from commonly used industry mixes with no impact on strength, durability or batching and placement. Crucially, the product is designed to be cost-neutral at scale, so the industry pays standard concrete prices, avoiding a green premium.
“This round takes us from the lab to multi-tonne manufacturing. Backing from the British Business Bank through PXN, more than matched by investors who have stood behind us for four years, means Manchester graphene can cut carbon from British construction without adding cost,” said Mike Harrison, CEO.
The first close of the funding round was announced during a visit by Business, Innovation, Science and Trade Secretary Jonathan Reynolds to Concretene’s materials testing facility in Manchester’s Sister innovation district.
The visit coincided with a meeting of Prime Minister Andy Burnham, DBIST Secretary Reynolds and small business representatives at Number 10 North, as the Government announced measures to ease costs and administrative burden for SMEs ahead of the Budget.
Reynolds said: “Small businesses and innovation go hand in hand in this country, with so many great companies like Concretene developing new ideas that set them apart from the competition and turn them into jobs. That’s why we’re helping unlock the potential of small businesses through removing £800 million worth of everyday paperwork and bureaucracy.
“I congratulate Mike and his team for securing £2m in backing from the British Business Bank to back their future growth plans. It was an honour to meet them on Friday and try my hand at filling concrete moulds.”
Louise Chapman, NPIF II Fund Principal at PXN Ventures, said: “As well as being the birthplace of graphene, Manchester and the wider North West region has a long history of producing world-leading companies in the advanced manufacturing space.
“As the fund manager for NPIF II in the North West, we’re proud to be backing Concretene as it embarks on its next growth chapter, moving ever closer to a range of commercially scalable products with various industrial applications to lower the construction industry’s carbon footprint.”
Sue Barnard, senior investment manager at British Business Bank, added: “This investment from the Northern Powerhouse Investment Fund II will help Concretene scale up its manufacturing capabilities and bring its graphene-enhanced products closer to wider commercial use.
“Supporting businesses that turn innovation into practical scalable solutions is key to strengthening the North’s advanced manufacturing sector, reflecting the wider ambitions of the UK’s Modern Industrial Strategy to support UK economic growth.”
Depledge quits as Government’s startup adviser ahead of Budget