Skytree, an innovative climate technology company headquartered in Amsterdam, revealed on Tuesday that it has successfully raised $6 million in seed funding. The funds will be used to develop and deploy their proprietary Direct Air Capture (DAC) technology, aiming to make a significant impact in combating climate change. Horticoop and Yield Lab Europe spearheaded the funding round.
In addition to the funding news, Skytree announced the induction of Mark Henderson as their new global Chief Commercial Officer and President of North America, hinting at its ambitious expansion plans.
Horticoop, a cooperative fund investing in horticulture-centric businesses, and Yield Lab Europe, an agtech impact VC fund, were the lead investors in this round. “Controlled environment agriculture faces a complex challenge with the energy transition that should lead to a reduction of CO2 emissions,” says Steven van Nieuwenhuijzen, CEO of Horticoop. He believes that Skytree’s promising technology can successfully contribute to a more climate-neutral horticulture sector.
The Amsterdam-based climate tech was founded by Max Beaumont in 2014 and focused on harnessing CO2 from the air using its DAC technology. The purpose of the technology is to help industries transition away from fossil fuels and towards a more sustainable approach. By offering onsite CO2 generation, the company can eliminate the need for transportation to places where CO2 is required, providing a more efficient solution across numerous industries, including indoor farming, greenhouses, and mineralization.
According to the company, their technology, based on a decade of extensive research, can lead to agricultural yields that are 20-30% higher than traditional farming methods, thanks to the application of Controlled Environment Agriculture (CEA) technologies and the circular CO2 supply.
“We are the first climate tech company supporting food security through the deployment of DAC technology, enabling businesses to transition away from fossil fuel-based CO2 supply,” says Rob van Straten, CEO of Skytree.
With 17 patents registered across the US, Europe, and China, Skytree is well-positioned to monetize its technology across multiple use cases. Moreover, the Amsterdam-based climate tech has launched pre-orders for its vertical farm units that produce an independent CO2 supply.
The raised capital will be deployed to capture 10 Mt of CO2 by 2030. This will help mitigate climate change and provide businesses that depend on CO2 with a more reliable and less expensive source, easing supply chain issues and price volatility.
Daan Wilms van Kersbergen, Investment Director of Yield Lab Europe, praised Skytree’s potential to reduce the use of fossil CO2 in CEA, noting the numerous applications for Skytree’s technology beyond agriculture. He stated that Yield Lab Europe is eager to support the company through its next growth phase.
Image provided by Skytree