Innovating toward a Greener, Smarter, and More Efficient Chemical Industry
As we venture deeper into the decade, chemical engineering is undergoing a seismic transformation. Driven by the twin imperatives of sustainability and innovation, a new generation of startups is reshaping the landscape. These companies are leveraging breakthroughs in electrochemistry, synthetic biology, catalysis, and carbon capture to disrupt traditional industrial processes and unlock new possibilities.
From turning CO₂ into valuable chemicals to reinventing how we make medicines, here are ten startups poised to make waves in 2025.
1. Dioxycle: Turning CO₂ into Ethylene
Paris-based Dioxycle is pioneering the conversion of carbon dioxide into ethylene—a foundational chemical used in the production of plastics, solvents, and textiles. The company has developed an electrolyzer that uses renewable electricity to catalyze this transformation, offering a sustainable alternative to fossil-fuel-derived ethylene.
Backed by a $17 million Series A funding round in 2023, Dioxycle has transitioned from lab-scale R&D to pilot-level operations. Its technology could drastically cut emissions in the $100+ billion global ethylene market and represents one of the most promising cases of industrial CO₂ utilization.
2. Liquid Light: Electrochemical Carbon Conversion
New Jersey-based Liquid Light specializes in converting CO₂ into industrial chemicals such as ethylene glycol and acetic acid through proprietary electrochemical technology. With over 100 patents under its belt, Liquid Light’s innovation offers a route to produce chemicals with significantly lower environmental impact.
The company has positioned itself to license its technology to major chemical manufacturers, making it a key player in scaling sustainable production of everyday materials like plastics, antifreeze, and polyester.
3. Air Company: Carbon-Negative Fuels and Spirits
Air Company has captured the imagination of the chemical and consumer industries alike by developing a modular system—AIRMADE™—that converts industrial CO₂ emissions and green hydrogen into ethanol, methanol, and even jet fuel. With $39 million raised in Series A, the company is expanding both its technological and market footprint.
Air Company’s carbon-negative spirits have already gained retail traction, and its sustainable aviation fuel (SAF) is now being trialed by major airlines. It’s a stellar example of how chemical innovation can be both environmentally responsible and commercially scalable.
4. CERT Systems: Electrolyzing CO₂ into Fuels
Based in Canada, CERT Systems focuses on using electrolysis to convert CO₂ into value-added products such as ethanol and ethylene at ambient temperature and pressure—reducing both cost and complexity.
Backed by $1.4 million in seed funding, CERT’s approach could lower the barrier to widespread CO₂ conversion adoption. Their ambient-process technology avoids the energy-intensive conditions typically associated with such chemical transformations.
5. DUDE CHEM: Green Chemistry for Pharmaceuticals
Berlin-based DUDE CHEM is rethinking pharmaceutical manufacturing with a focus on green synthesis. The startup designs more sustainable reaction routes for the production of active pharmaceutical ingredients (APIs) and intermediates, dramatically cutting CO₂ emissions and catalyst costs.
Their early success includes achieving an 82% reduction in catalyst-related expenses and a 38% drop in CO₂ emissions for targeted molecules. With €6.5 million in seed funding, DUDE CHEM is on track to bring eco-friendly efficiency to the pharmaceutical supply chain.
6. Copernic Catalysts: Unlocking Sustainable Ammonia and Hydrogen
Copernic Catalysts, based in the U.S., is building the next generation of chemical catalysts to produce essential industrial chemicals like ammonia and hydrogen more sustainably. Their custom-designed catalysts are designed for compatibility with renewable electricity, supporting the transition away from high-emission processes like steam methane reforming and the Haber-Bosch process.
The company raised $8 million in seed funding and is currently focused on scaling up pilot projects across North America and Europe.
7. TurnOver Labs: CO₂ Waste to Value
TurnOver Labs takes a practical approach to the CO₂ problem by offering solutions that retrofit into existing industrial processes. Its core innovation is an electrochemical platform that transforms waste CO₂ into usable building-block chemicals.
With $1.4 million in early-stage investment, TurnOver Labs is still in its infancy but has already gained interest from the food and beverage sector, cement plants, and specialty chemical companies eager to reduce emissions and unlock new revenue streams.
8. Syzygy Plasmonics: Light-Powered Chemical Reactions
Houston-based Syzygy Plasmonics is taking chemical reactions out of the dark ages—literally. Their photochemical reactor uses LED light to trigger reactions at lower temperatures, eliminating the need for fossil fuels as heat sources in processes like hydrogen production and ammonia synthesis.
This technology could revolutionize chemical manufacturing by slashing both energy use and emissions. As part of MIT’s STEX25 accelerator, Syzygy is already drawing attention from major energy and chemical players looking to modernize their operations.
9. BlueStem Biosciences: Bioengineering CO₂ Solutions
U.S.-based BlueStem Biosciences harnesses anaerobic fermentation and engineered microbes to convert CO₂ into biochemicals like acetic acid, butanol, and more. Their process mimics natural microbial pathways while optimizing productivity and scalability.
The company has raised around €10 million and is working closely with the agricultural and biofuel industries to integrate its platform into existing systems. Their biology-based approach offers a complementary alternative to electrochemical conversion.
10. Constructive Bio: Programming Life for Materials
A spinout from the University of Cambridge, Constructive Bio is on the frontier of synthetic biology. The company reprograms bacterial genomes to produce entirely new classes of proteins and polymers—without the constraints of the natural genetic code.
Their custom-built organisms are designed to manufacture everything from high-performance materials to biodegradable plastics. With $15 million in seed funding and access to cutting-edge genomic tools, Constructive Bio could redefine what’s possible in bio-based chemical engineering.
Honorable Mentions
Phoenix Tailings – Specializes in rare-earth element recovery without toxic waste. Recently raised $43 million in Series B, backed by BMW and Yamaha.
Matteco – A Spanish startup building electrocatalysts for green hydrogen; raised €15 million to scale production.
Varda Space Industries – Conducting pharmaceutical crystallization in microgravity to improve drug stability and performance.
Market Forces Driving Innovation
What unites these startups is not just scientific ingenuity, but their alignment with broader economic and environmental trends:
Climate Targets: As regulatory and social pressure mounts, industries are seeking carbon-negative or low-emission technologies.
Decentralization: Modular and on-site systems (e.g., AirMADE™, Syzygy’s reactors) allow production closer to demand centers, reducing transportation and storage costs.
Resource Scarcity: Companies like Phoenix Tailings and Copernic Catalysts help secure rare or energy-intensive resources through circular chemistry or improved efficiency.
Bio-Based Transitions: With petrochemicals under scrutiny, biology-first companies like Constructive Bio and BlueStem offer compelling alternatives.
What to Expect in 2025
In 2025, we can expect several of these startups to reach critical milestones:
Scaling from lab to pilot or commercial deployment, particularly Dioxycle, Liquid Light, and Air Company.
Regulatory partnerships and certifications, especially in aviation fuel, pharma, and consumer goods sectors.
Industry partnerships and acquisitions, as legacy chemical companies seek to integrate sustainable technologies.
New funding rounds, especially Series B and C, to accelerate production and expand into global markets.
Conclusion
Chemical engineering is no longer just about producing bulk commodities—it’s about reimagining the fundamental processes that shape our world. From cleaner fuels and greener plastics to smarter pharmaceuticals and carbon-neutral feedstocks, the startups leading the charge in 2025 offer a preview of a more resilient, efficient, and sustainable chemical industry.
Whether through electrochemical conversion, synthetic biology, or advanced catalysis, these companies are poised to make a lasting impact—not just in their niches, but across the global economy.
Keep an eye on these ten trailblazers. The future of chemical engineering might just begin with them.
