RMI and Third Derivative have announced the launch of the Industrial Innovation Cohorts initiative, a project designed to address some of the most significant carbon pollution challenges in the industrial sector. Supported by a $2 million grant from The Lemelson Foundation, the initiative aims to accelerate the development and commercialization of breakthrough technologies across the cement, steel, and chemicals industries.
Heavy industry is a major contributor to global carbon emissions, accounting for 30% of the total. The production of cement, steel, and chemicals alone represents half of these emissions, posing significant challenges for global climate goals. As industries essential to modern life, these sectors face barriers such as high capital costs, long asset lifetimes, and complex supply chains that hinder rapid decarbonization.
Without swift and innovative solutions, these sectors could become the largest emitters within the next decade. The Industrial Innovation Cohorts will focus on reducing emissions by fostering innovation in three key areas and is recruiting startups specializing in decarbonizing the following industrial processes:
Cement and Concrete: Startups will work on reducing or replacing clinker, the primary source of cement emissions, while exploring alternatives such as carbon capture, utilization, and storage (CCUS) technologies to sequester carbon pollution.
Iron and Steel: Innovations will focus on hydrogen-based direct reduction of iron, alternative iron reduction methods, and enhancing post-consumer scrap recycling. Additionally, the cohort will explore supply chain and design innovations to reduce material demand and investigate the use of alternative materials.
Chemicals and Plastics: The focus will be on improving plastics circularity, shifting chemical production away from fossil fuels to renewable feedstocks, and enhancing the energy efficiency of manufacturing processes and high-temperature chemical reactions.
These areas have been selected based on their potential to significantly reduce industrial emissions, with the cohorts prioritizing technologies that can achieve substantial impact across the value chain.
The Lemelson Foundation's $2 million grant is part of its broader $50 million Climate Initiative, which seeks to support technological advancements necessary for combating climate change. Third Derivative and RMI's collaboration will provide participating startups with access to essential resources, including market insights, expert mentorship, and industry connections to help secure funding and accelerate the deployment of their technologies.
"Steel, cement, and chemicals are tough to decarbonize for a lot of reasons," stated Rushad Nanavatty, Managing Director of Third Derivative. "They have formed the backbone of modern life — produced at scale, cost-effectively, and reliably — for decades. Their massive, long-lived plants and intricate value chains demand many innovations working in concert. But visionary founders are finding ways to produce them without carbon pollution, and our mission is to accelerate their path to market."
Applications for the Industrial Innovation Cohorts are open from August 26 to October 26, 2024. RMI and Third Derivative will select and support 5–10 climate tech startups for each cohort, offering them the tools and connections necessary to bring their innovations to market.
"The climate crisis requires fundamental transformation of the global economy," said Eric Lemelson, President of The Lemelson Foundation. "In addition to powering our homes, businesses, and transportation with cheap, carbon-free renewable energy, we must rapidly reduce the heavy emissions of the 'hard-to-abate' industries, including steel and concrete. As an inventor, my father Jerry recognized the central role played by invention in solving so-called ‘wicked problems’ like climate change. I know that if he were alive today, he'd be as thrilled and inspired to support the work of RMI and Third Derivative to realize full industrial decarbonization as we are."
Bryan Fisher, Managing Director at RMI, emphasized the critical role of innovation in transforming these industrial sectors. "Cement, steel, and chemicals are the building blocks of society — other than water, these are the most used materials in the world," Fisher said. "They are also some of the most difficult to decarbonize. Innovation will play a critical role in reducing emissions from these industrial sectors, helping turn ambitious investments from public and private players into scalable climate solutions. Many promising technologies are already emerging, and we are excited to work with members of the Industrial Innovation Cohorts to get them to the next level of commercialization and adoption.”
