Cement, an integral component necessary for the creation of concrete, is invaluable in the building and upkeep of infrastructure internationally, due to its affordability, endurance and strength. Nonetheless, the production of cement leads to 8% of all worldwide carbon dioxide discharges, a primary contributor to global warming. In order to combat this, Leah Ellis, a new CEO at 33-years-old and chemist, as well as Professor Yet-Ming Chiang from MIT who is partaking in his sixth clean-tech venture, have come together to form Sublime Systems. The company focuses on creating a cleaner form of cement production. Ellis categorizes their approach as the "electric vehicle of cement making" since they are replacing the traditionally fossil fuel-intensive method with an electrochemical alternative.
During Leah Ellis's doctoral studies at Dalhousie University in Nova Scotia, she worked as part of a team on battery research for Tesla. After graduation, she made a different choice. "I could have chosen a more conventional path within my field and been hired by firms like Tesla or Apple," Ellis, 33, said in a Wednesday phone conversation with CNBC. Instead, she received a prestigious Banting Postdoctoral Fellowship, which granted her two years of salary to work with any mentor she chose. She chose to work with renowned material sciences professor and entrepreneur Yet-Ming Chiang at the Massachusetts Institute of Technology.
Chiang and Ellis sought to scale up a climate-conscious process of producing cement with electrochemistry instead of relying on fossil fuel-powered heat. This new production method would take advantage of the abundant intermittent energy generated by renewable sources, such as wind. As Ellis explained to CNBC during a visit to Boston in May, "Sometimes people will pay you to take energy off their hands. Instead of putting that energy in a battery, what if we can use this extra low-cost renewable energy to make something that would otherwise be very carbon-intensive?"
Cement is a key ingredient in concrete and vastly in demand in global construction and infrastructure. The market for cement was worth $323 billion in 2021 and is projected to be worth $459 billion by 2028. Conventionally, cement powder is made by crushing raw materials, mixing with iron and fly ash, and then heating up the ingredients to around 2,700 degrees Fahrenheit. This process produces 8% of global carbon dioxide emissions, a primary cause of global warming.
Chiang and Ellis co-founded Sublime Systems in 2020 to refine and expand the electrochemical process they developed for making cement. Sublime has secured $50 million from sources such as LowerCarbon Capital, The Engine, Siam Cement Group, and two grants from the U.S. Department of Energy's Advanced Research Projects Agency-Energy (ARPA-E) program.
Ellis refers to the work they are doing as creating the "electric vehicle of cement production." Similar to the way an electric motor replaces a combustion engine in an electric vehicle, Sublime Systems replaces the traditional, fossil fuel-dependent course of cement making with a process that is powered by electrons. Ellis explained to CNBC, "For the layperson, it's easiest to comprehend how we've taken a high-temperature, fossil-fuel-based course and switched it with something that is powered through electrons. We do this at a temperature lower than the boiling point of water, and that is a essential distinguishing feature." Ellis was fairly unfamiliar with cement manufacturing when Chiang prompted her to research and figure out a method to create low-carbon cement. She began by reading scholarly articles and textbooks, which led to her teaming up with a PhD student and ultimately producing a journal article. This research served as the driving force for what Sublime does today, and Ellis has been continually modifying her original concept since then. Describing her journey, she told CNBC, "And basically I just kept going. It's been five years now."
Ellis has always had a propensity for inquisitiveness. "I was something of a bookworm as a kid," she remarked. "I've always had a compulsion to understand things and an enthusiasm for exploration." Her background provides an interesting blend of influences: her dad is an Orthodox Jewish rabbi from Texas, her mother was raised on a sheep farm in South Africa, and the two met in Israel. "My father left Jerusalem as there were too many rabbis there, and relocated to eastern Canada, an area not well populated by rabbis," Ellis told CNBC. Her home life was one which celebrated and thrived on learning new things.Ellis and her sister both achieved doctorates in chemistry, and according to Ellis, it is a subject that challenges them. She explained it has "a lot of creative power to make things happen in the real world" and added, "It's almost like magic, if you work really hard on it you can create things that make the world a better place." She further noted that battery science and cement producers usually do not collaborate, but Sublime Systems has the capability to bring those two fields together. Additionally, Ellis spoke of electrochemistry's potential for clean technology, saying it is "often more efficient" compared to heating processes. Chiang agreed with this sentiment, noting that they have "a pathway to complete decarbonization at cost parity with today's cement while consuming the least amount of energy."
Ellis and her sister both achieved doctorates in chemistry, which Ellis stated is highly creative and challenging. She described how its power can be used to "make the world a better place" if hard work is applied. Moreover, Ellis noted that battery science and cement producers are not typically partnered together, yet Sublime Systems has the capability to join them. In addition, Ellis mentioned that electrochemistry is a viable method of employing clean technology, as it is more efficient than heating processes. Chiang expressed support for this idea, observing that they have a path toward decarbonizing cement production without consuming too much energy.
Mark Mutter, founder of Jamcem Consulting, an independent cement industry consultancy, told CNBC that overall, the industry is highly motivated to go green. Motivations are strongest in places like Europe, where producers are charged around 80 euros (nearly $88) per metric ton of carbon dioxide emitted. This "big financial penalty" encourages producers to invest in green tech, Mutter explained. This is one reason why investors are investing in Sublime.
Clay Dumas, partner at LowerCarbon Capital, said customers are queuing up to partner with Sublime since they offer fossil-free cement at a time when other companies are striving to meet emissions targets and comply with carbon tariffs. LowerCarbon's enthusiasm is partly due to the company's ubiquity and age-old production techniques.
Carbon capture technologies are being looked into by some cement producers to manage their greenhouse gas emissions. Nonetheless, Mutter believes this approach is too costly and "just buries the problem for future generations." Sublime, on the other hand, produces a clean cement without the expensive addition of carbon capture and storage technology, thus keeping costs low, according to Katie Rae, CEO at The Engine. She remarked that their process leads to energy efficiency and price parity with traditional cement. Dumas highlighted that Sublime's formula runs on electricity at normal temperatures and emits no carbon, annulling the need for large ovens and costly carbon capture systems.
Timothy McCaffery, a venture investor at Siam Cement Group, told CNBC that the company analyzes thousands of businesses yearly but only goes through with a select few. What appealed to SCG about Sublime is that they forego complicated and costly carbon capture methods and still work with existing infrastructure. Furthermore, Sublime creates cement that meets American Society for Testing and Materials standards and can "drop into the existing ready mix supply chain," McCaffery said.
By the end of 2022, Sublime had finished its pilot plant and spent a couple of months implementing quality control measures. Presently, Ellis is looking to provide the product to partners, and the organization is expecting to begin their first construction project by the end of the year. The subsequent advance is to move from the 100-ton pilot plant to a 30,000-ton-per-year demo plant. Although Sublime is only beginning, Ellis comprehends that rapidity is essential in the competition to decarbonize. "My purpose is to have a rapid and massive influence on climate change," she said to CNBC in Boston.
Ellis has impressive credentials in chemistry, but this is her first go at being the head of a company. She told CNBC, "I'm aware of my age, and I'm humble about that. I'm a first-time founder and CEO, so I'm learning as I go. I'm fortunate to have great guidance and people who believe in me and see that I'm passionate and willing to work hard to make this happen." To stay motivated, Ellis makes sure she gets the right amount of sleep and stays physically active. She's run seven marathons and once rode a bike across Africa for four months, averaging more than 60 miles a day. She also participates in a "fitness cult" that climbs the stairs at Harvard Stadium every Sunday. Ellis said, "I'm not particularly fast at running or cycling, but I know how to maintain a steady effort for a long time and keep myself in good spirits."
Chiang revealed to CNBC that the pursuit of solutions for climate change is what keeps him going. He remarked, "It's been around fifteen years since the term 'climate change' entered the lexicon, and it's been amazing to use this opportunity to create potential impactful solutions. We're in a very creative period, trying to reinvent the technological tools of the industrial revolution. There are plenty of great problems to work on, and we have limited time."
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