Cleantech startup AtmosZero announced that it has raised $21 million, with proceeds to be used to commercialize its solution to tackle industrial emissions by decarbonizing industrial steam.

Industrial steam, used in industries ranging from food and beverage production to chemical manufacturing and across the built environment, accounts for approximately 15% of industrial energy usage, and is generated primarily through burning fossil fuels.

Spun out of a project at Colorado State University in 2021, AtmosZero has developed Boiler 2.0, a modular electrified boiler that uses heat from the air to generate high-temperature steam with maximum efficiency and zero carbon emissions. According to the company, the solution is significantly more efficient than current electric boilers, using half of the electricity, and is a drop-in system, allowing companies to replace their existing natural gas and oil boilers quickly and cost-effectively.

Last year, AtmosZero unveiled a strategic partnership with New Belgium Brewing Company that involves a full-scale pilot at New Belgium’s flagship facility. Additionally, the company launched its European subsidiary, AtmosZero Europe, B.V., based in Amsterdam. AtmosZero will use this investment to advance both efforts including executing the commercial pilot and expanding the company’s European reach.

Addison Stark, CEO and Co-Founder of AtmosZero said:

“Our vision is to eliminate global emissions from fossil-fueled boilers. The investment today from leading US and European investors is a tremendous validation of our technology and approach to eliminating Scope 1 boiler emissions.”

The round was co-led by venture investors Engine Ventures and 2150, and included participation by Constellation Technology Ventures, the strategic venture arm of Constellation Energy Corporation and existing backers Energy Impact Partners, Starlight Ventures, and AENU.

Michael Kearney, General Partner at Engine Ventures said:

“The path to net-zero emissions runs through the boiler room and requires the replacement of existing fossil-based systems. Reducing reliance on fossil fuels isn’t just an environmental imperative — it’s a geopolitical one, too. We are thrilled to support the AtmosZero team’s mission to decarbonize industrial emissions with its scalable, drop-in electrified solution.”

Christian Hernandez Gallardo, Partner and Co-Founder of 2150 added:

“Industrial process heat in the form of steam is essential for industries spanning food and beverage through to district heating and is responsible for over 2 gigatons of carbon dioxide per year. We were hunting for a solution that could unlock the vast impact potential in this market, with an offering that was a financial no-brainer to customers. The technology Addison and his all-star team have developed does exactly that and we look forward to supporting AtmosZero as they roll out their technology to the customers that eagerly await them in Europe.”

In addition to the Series A investment, AtmosZero was recently awarded a $3.2 million grant from the U.S. Department of Energy’s Industrial Efficiency and Decarbonization Office (IEDO) aimed at helping rapidly decarbonize America’s industrial sector.