Furno, a cement startup, has secured a $20 million grant from the U.S. Department of Energy (DOE) to fund the construction of up to eight micro-kilns at a concrete facility in Chicago. This innovative project aims to reduce pollution and cut transportation costs, as cement is currently sourced from plants located over 100 miles away.
Furno’s strategic partner in this venture, Ozinga, a prominent concrete producer, typically purchases around 60,000 tons of cement annually for its Chinatown Yard, located on Chicago’s south side. The cement is mixed with aggregate materials to produce concrete for various construction projects throughout the city. With Furno’s new micro-kilns, Ozinga will have the capacity to produce its own cement locally, eliminating the need for long-distance transportation and drastically cutting associated costs.
Unlike the large-scale cement plants typically seen, which require extensive logistical networks, Furno’s micro-kilns are tailored to meet the exact needs of Ozinga. Furno’s founder and CEO, Gurinder Nagra, explained the efficiency behind the project: “We’ve sized our facility to match Ozinga’s usage. They have access to both virgin limestone and recycled materials, ensuring a sustainable supply chain.”
In addition to reducing transportation costs, Furno’s kilns promise significant environmental benefits. The kilns will be powered by biogas, a renewable energy source derived from decomposing organic matter, further minimizing the environmental footprint of cement production. Cement is one of the most carbon-intensive industries globally, responsible for about 8% of the world’s carbon emissions. The traditional process of calcination—where calcium-rich minerals like limestone are heated—releases large amounts of carbon dioxide. For every metric ton of cement produced, 600 kilograms of carbon dioxide are emitted.
Furno’s micro-kilns not only shrink the size of traditional cement kilns but also make them more efficient. By reconfiguring the kiln into an upright structure, Furno allows more heat to be utilized in the calcination process, reducing fossil fuel consumption by up to 70%. The system can even operate without any fossil fuels when powered by hydrogen.
This cutting-edge technology comes as Furno continues to grow. Earlier this year, the startup raised $6.5 million in seed funding, and it plans to launch a Series A round in early 2025 to cover further expenses.
The project, aptly named “Project Oz,” not only brings sustainable cement production to Chicago but also provides an economic boost. It is expected to create 50 construction jobs and 30 permanent positions. The DOE’s interest in the project was heightened by its potential to restore jobs lost due to the closure of coal plants in the region.
Furno’s success follows other DOE-backed initiatives in the cement sector. Terra CO2, another innovative cement startup, was awarded $52.6 million to build a new facility near Salt Lake City, Utah, to produce a less-polluting alternative to Portland cement.
With this grant, Furno’s micro-kiln technology is poised to play a significant role in transforming cement production in the U.S. and reducing its environmental impact.
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