Low Carbon Materials (LCM) have received funding to scale production capacity and accelerate growth in another important milestone in their journey to decarbonize the construction industry. The built environment sector accounts for 25% of the UK’s carbon emissions and reducing emissions from the sector will be a crucial component of achieving net zero. To date, the industry has been one of the slower sectors to reduce emissions, meaning the need to adopt innovative solutions, such as those provided by LCM, is acute.
The Durham-based company with a national reach have secured £3 million in investment from existing investors Northstar Ventures, via the North East Innovation Fund supported by the European Regional Development Fund, in a round led by Ada Ventures, with additional funding from Green Angel Ventures, alongside sponsorship and skill-based support from Deloitte and Innovate UK’s Future Economy Investor Partnership programme. Northstar first invested in LCM in 2020, shortly after the Company spun out from Durham University, and has supported the Company in two subsequent rounds of funding.
LCM currently produces two industry-transforming carbon negative aggregates, OSTO® which lowers the carbon footprint for concrete by significant amounts and ACLA® which performs the same function in asphalt. These sustainable solutions replace traditional materials, providing greener alternatives to the components used in the construction sector.
ACLA® is currently being used in several projects nationally with the product included in a road-resurfacing pilot project of the M11 in a collaboration with National Highways, Tarmac and Skanska. ACLA® was used by Durham County Council and MGL Group for a first of a kind road surfacing project on Elvet Hill in Durham City earlier in 2024 which received significant local press coverage.
The Company is led by co-founder and CEO, Natasha Boulding, alongside co-founders Phil Buckley and Scott Bush, who met at Durham University whilst completing their PhDs.
LCM were finalists for the prestigious Earthshot Prize, a global competition to find and grow solutions to repair the planet, in 2022. They are currently finalists in the Highways UK Excellence awards for 2024 and have received international recognition for their work from various high profile climate groups.
Tom O’Neill, Investment Manager at Northstar Ventures, said: “We are delighted to support LCM with further funding and proud to support the company in their mission to decarbonize the built environment sector, which is critical to achieve net zero. We have been invested in LCM since 2020 and have seen the Company develop significantly since then as they launch new products and scale up their commercial operations.
Northstar invests in companies and teams seeking to tackle global challenges and we believe that innovation and funding can be harnessed to create a positive impact for people and the planet. LCM is a prime example of this in action, and we are excited to be part of the next stage of their exciting journey.”
Notes To Editors
Press contacts – Northstar Ventures Limited
Deborah Nixon Carr
Marketing / Investment Support
M: 07754 800 749
[email protected]
Emma O’Rourke
Finance Director
M: 07715 366 434
[email protected]
About Northstar Ventures
Northstar Ventures is a long-established venture capital and social investment company based in the North East of England.
As the region’s leading early-stage investor, we have provided over £100m of funding into start-ups, early-stage businesses and high impact social enterprises.
Supporting entrepreneurs since 2004, we know how to identify strong, effective teams with innovative ideas that will drive high growth, scalable businesses, and sustainable charities. Our particular focus is on those organisations who provide solutions to societal and industry-wide issues on a regional, national and even global scale.
Our investment managers have a wealth of expertise supporting new and growing businesses. They bring commercial and operational knowledge to the table combining everything from PhDs, MBAs, international careers and finance to micro-business experience.
Northstar Ventures Limited is authorised and regulated by the Financial Conduct Authority. For more information see www.northstarventures.co.uk.
Editor’s notes:
Media contacts:
Press contacts – North East Fund
Kristen Watson
PR Account Executive
T: 0191 261 4250
M: 07718 065696
[email protected]
Sarah Banks [email protected]
Jez Davison [email protected]
About The North East Fund
The North East Fund is a suite of five venture capital and loan funds which was established in April 2018, to invest £130m in around 600 North East businesses in the period to December 2023. The fund managers provide business development advice and investment finance to small and medium sized enterprises based in the seven Local Authority areas of North East England: Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead Sunderland and County Durham. The programme encourages investment in and the commercialisation of new technologies, including low carbon technologies, as well as stimulating new business creation, private investment and entrepreneurialism in the North East, with a view to creating over 2,500 new jobs. The North East Fund has overall responsibility for the programme, which is delivered through five separate funds, each managed by independent, FCA regulated fund managers. Details of these, and up to date information on the progress of the programme, is available on The North East Fund’s website: www.northeastfund.org.
The North East Fund has been established with funding from the North East of England European Regional Development Fund programme, the European Investment Bank and from returns on previous North East based, publicly supported investment funds. It is jointly owned by the seven North East local authorities.
About the European Regional Development Fund
The North East Fund will receive up to £66,500,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Levelling Up, Housing and Communities is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations.
For more information visit: https://www.gov.uk/european-growth-funding
About the European Investment Bank
The European Investment Bank (EIB) will lend up to £60,000,000 to the North East Fund programme. The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
For more information, visit: http://www.eib.org/about/index.htm
