Eliot Brooks, CEO and co-founder of Cocoon, is reshaping the heavy industry by transforming steel slag into a sustainable cement source. He discusses the challenges steel decarbonization poses for cement production and how electric arc furnaces are crucial for this transition. Eliot shares insights on building a circular economy, Cocoon's innovative business model, and their recent $5.4 million funding round. With experiences from diverse industries, he emphasizes the need for collaboration and advanced technology to tackle climate challenges in heavy manufacturing.
Cocoon aims to transform steel slag into a valuable cementitious material, addressing challenges posed by the steel industry's transition to electric arc furnaces.
The company’s innovative processing technique not only enhances the marketability of steel slag but also promotes circular solutions within the heavy industry.
Deep dives
Cocoon's Role in the Circular Economy
Cocoon is focused on enhancing the industrial circular economy by converting steel slag into valuable materials for cement production. As the steel industry shifts from coal-based blast furnaces to lower-emission electric arc furnaces, the traditional byproduct, blast furnace slag, is being replaced by steel slag, which is less suitable for cement production. This change disrupts the supply chain and poses emissions challenges for the cement industry, as the availability of supplementary cementitious materials is declining. Cocoon aims to address this issue by upcycling steel slag, creating a viable solution for both industries to decarbonize while continuing to produce essential construction materials.
Transitioning Steel Production Methods
The steel industry's path to net zero involves a significant transition from traditional blast furnaces to electric arc furnaces, which utilize largely recycled steel. Blast furnaces emit around 2.2 tons of CO2 for each ton of steel produced, while electric arc furnaces promise a lower-emission alternative but generate different byproducts. The shift leads to a supply shortage of blast furnace slag, a valuable resource for cement production, as steel slag is often inert and of lower value for cement use. This situation creates a pressing need for innovative processing methods to ensure that steel producers can still meet the demands of the cement industry amidst ongoing changes in production techniques.
Cocoon's Innovative Processing Solutions
Cocoon addresses the challenges associated with steel slag through a unique processing technique that enhances the material's cementitious properties. By working with molten steel slag and applying rapid cooling methods, Cocoon transforms the high-iron content into a form that is reactive and suitable for use in concrete production. This process not only helps avoid the landfilling of steel slag but also opens up new revenue streams for steel producers. The goal is to ensure that this valuable byproduct can meet the performance standards required in the industry, effectively replacing traditional slag and helping cement producers reduce their carbon footprint.
The Path to Market and Future Opportunities
Cocoon's business model involves co-locating processing units at steel production facilities, allowing for efficient conversion of waste into valuable product without extensive capital investment. The company has plans for on-site trials to validate their process and secure contracts with steel producers and concrete manufacturers. As the transition to electric arc furnaces continues, Cocoon is well-positioned to capitalize on the growing supply of steel slag and address the critical needs of the cement industry. Looking ahead, the insights gained from this project may lead Cocoon to explore further innovations in other heavy industries, as circular economy challenges persist across various sectors.
Cocoon is driving the industrial circular economy, starting with a process that helps the steel industry continue supplying a critical feedstock for cement production. This feedstock is increasingly at risk as steelmaking transitions from coal-based blast furnaces to lower-emission electric arc furnaces.
Cocoon was founded on the realization that as industries decarbonize, certain process changes disrupt circular supply chains. The connection between the slag byproduct of steelmaking and the demands of cement production is their starting focus. Earlier this year, Cocoon announced a $5.4 million pre-seed round led by Wireframe, Gigascale, SOSV, and Celsius Industries.
In this episode, we cover:
[1:33] Introduction to Cocoon
[3:13] The challenge steel decarbonization poses for the cement industry
[9:56] Cocoon's process for transforming steel slag into a cementitious material
[10:51] Eliot’s background and journey to working on this technology
[15:46] Cocoon's business model and go-to-market strategy
[19:43] Decarbonization pathways for steel and the role of electric arc furnaces
[21:10] Cocoon's current technology readiness and near-term deployment plans
[22:05] Building industrial expertise at Cocoon
[25:07] Comparing the US and Europe as initial target markets
[27:57] Cocoon's recent $5.4 million pre-seed funding round
[30:00] Eliot’s perspective on bringing expertise from other industries to address challenges in steelmaking
Episode recorded on Nov 20, 2024 (Published on Jan 16, 2025)
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