UK-based start-up Cocoon Carbon has raised EUR13m (US$15m) in a Series A funding round to support the development of supplementary cementitious materials (SCMs) derived from electric arc furnace (EAF) steel slag.
The round was co-led by 2150 and Brick & Mortar Ventures, with participation from TVC and existing investors including Wireframe Ventures, Celsius Industries, Gigascale Capital and SOSV.
Cocoon Carbon is targeting a growing supply gap in SCMs, as traditional sources such as coal-fired power plants and blast furnaces decline. The company said demand for SCMs is increasing by around 6–7 per cent per year, with tightening supply already driving price increases in several markets.
The company’s process converts molten steel slag into a cement substitute using rapid cooling technology, which can be integrated into existing EAF operations. Cocoon claims its product can reduce the embodied CO2 of concrete by up to 40 per cent, while remaining cost-competitive with conventional materials.
The new funding will be used to develop a first commercial demonstration plant in the USA, with the longer-term aim of deploying the technology across steel plants in North America and Europe.
