PeroCycle is an innovative industrial startup focused on decarbonizing the steelmaking sector, one of the world’s most carbon-intensive industries. By developing pioneering carbon recycling technology, PeroCycle aims to convert carbon dioxide emissions generated during steel production into reusable carbon monoxide, thereby establishing a closed-loop carbon pathway. Founded in December 2024 as a spin-out from the University of Birmingham and supported by venture-builder Cambridge Future Tech alongside major industry player Anglo American, PeroCycle is gaining attention as a potential game-changer in the steel industry’s efforts to reduce its greenhouse gas footprint. This article explores PeroCycle’s technology, its origins, strategic partnerships, and its potential impact on sustainable steel production.
PeroCycle builds upon research pioneered by Professor Yulong Ding and Dr. Harriet Kildahl at the University of Birmingham’s School of Chemical Engineering. Their work introduced an in-process carbon recycling approach utilizing double perovskite materials, which enable the splitting of carbon dioxide (CO₂) into carbon monoxide (CO) and oxygen at significantly lower temperatures than traditional methods. This breakthrough is fundamental because it allows steel producers to recycle carbon internally rather than relying solely on external fossil fuels or slower decarbonization methods.
The core innovation is a thermochemical reactor that processes flue gas emissions from steelmaking operations. This reactor converts CO₂ emitted during steel production into CO, a valuable reducing agent that can replace coal or coke traditionally used in blast furnace-basic oxygen furnace (BF-BOF) steelmaking. By recycling CO on-site within existing infrastructure, PeroCycle minimizes the need for costly plant modifications while substantially cutting carbon emissions.
Steel manufacturing generates approximately 2.8 billion tonnes of CO₂ annually, amounting to nearly 8% of global greenhouse gas emissions. Traditional methods rely heavily on coal and coke, which are major contributors to these emissions. PeroCycle provides a disruptive, practical technology to cut the carbon footprint of steelmakers without requiring complete infrastructure overhaul, potentially accelerating global decarbonization efforts in this sector.
PeroCycle benefits from strong backing by major entities including Anglo American, a global mining giant with a strategic interest in reducing emissions in their supply chain. Additionally, Cambridge Future Tech supports the venture as a spin-out partner and investor, facilitating the transition from research to commercial-scale applications. These partnerships strengthen PeroCycle’s credibility and provide essential resources for scaling the technology.
In 2025, PeroCycle appointed Grant Budge as CEO, a veteran with over 30 years of experience leading carbon capture projects and decarbonization initiatives across heavy industries. Budge’s leadership reflects the company's ambition to transition from development to pilot-scale deployment, exemplified by the launch of a ��£4 million seed round to finance its first pilot unit capable of processing one kilotonne of CO₂ per year.
PeroCycle’s initial pilot plant will demonstrate the feasibility of their technology on an industrial scale by processing flue gases to produce CO that can be reintegrated into the steelmaking process. Successful pilot operation will pave the way for scaling the system across existing steel plants, enabling cost-effective carbon recycling and reducing emissions substantially in legacy and new facilities alike.
A significant advantage of PeroCycle’s technology lies in its compatibility with both traditional blast furnaces and newer direct reduced iron (DRI) units. This versatility means steel producers can retrofit existing plants rather than investing in complete rebuilds, preserving jobs and minimizing capital expenditures while advancing decarbonization goals.
By transforming steel plants into carbon recyclers, PeroCycle not only helps reduce the industry’s carbon intensity but also aligns with emerging international climate policies such as the European Union’s Carbon Border Adjustment Mechanism (CBAM). This mechanism imposes carbon costs on imported goods like steel, incentivizing cleaner production methods. PeroCycle’s technology could therefore empower steelmakers to remain competitive in stringent regulatory environments.
Despite its promise, PeroCycle faces challenges typical of deep-tech startups, including scaling the technology from laboratory to industrial scale, securing further investment, and achieving broad industry adoption. However, progress in pilot development, strong backing, and growing regulatory pressure on steel emissions incentivize momentum. Looking ahead, PeroCycle may integrate with other green hydrogen or electrification strategies to further reduce steel’s environmental impact.
As of 2025, PeroCycle has successfully closed a €4.5 million seed funding round and started pilot plant development, marking important milestones toward commercial deployment. The company continues to collaborate closely with the University of Birmingham for ongoing research and development, aiming to pioneer carbon recycling solutions that could revolutionize a sector historically resistant to rapid decarbonization. The trajectory suggests PeroCycle is poised to become a vital contributor to sustainable heavy industry.
PeroCycle represents a breakthrough in the quest for greener steel production by enabling in-process recycling of carbon dioxide emissions using advanced perovskite materials. Its innovative approach promises to reduce the steel industry's enormous carbon footprint without requiring costly plant redesigns. With strong academic roots, industrial partnerships, and a clear commercialization pathway, PeroCycle stands out as a hopeful solution in the global effort to combat industrial climate change. As the steel sector faces increasing pressure to decarbonize, technologies like PeroCycle’s may define the future of sustainable heavy industry. Will this pioneering technology achieve wide adoption and significantly reshape steelmaking emissions? Only time will tell.