CO2L: Pioneering Sustainable Solutions in Climate Technology

by: Mehr Sokhanda

With the increasing need for solutions that can mitigate atmospheric CO2 emissions, innovators in the clean tech space face a unique set of challenges. From rigorous standards testing and compliance to proving scalability and securing capital, the development cycles in this field are often longer and more complex. One founder shares her journey to develop a solution to reverse the effects of climate change.

Dr. Anh TranLy, CEO and Co-founder of CO2L Technologies , recently shared her entrepreneurial journey during Altitude Accelerator’s Ask A Founder session. Her experiences offer valuable insights for entrepreneurs, especially those navigating the challenging intersection of scientific innovation and market demands.

Her personal connection to climate change is deeply rooted in her hometown, located in the Mekong Delta, which faces the threat of disappearing due to rising sea levels. She stressed how over 60% of her homeland could be submerged within 50 years if climate change continues at its current pace. “In just one or two generations, my children may not have a chance to visit where I grew up,” she shared. The potential loss of her hometown became a powerful driving force behind her work.

Reflecting on her transition from academia, TranLy realized she wanted more from her scientific work than just publishing papers. “I want my science to be impactful. It’s not just collecting data and publishing. It should make some meaningful impact in the world,” she explained. This realization led her to explore entrepreneurship, joining consulting and startup clubs at her university to find ways to turn her scientific knowledge into tangible solutions.

Building in the Climate Tech Landscape: Longer Cycles, Funding, Support and Exposure

Dr. TranLy’s company, CO2L Technologies, focuses on electrochemical CO2 reduction. In contrast to traditional carbon capture and storage (CCS) approaches, CO2L Technologies is pioneering a more innovative and potentially sustainable path in the field of carbon capture and utilization (CCUS) as TranLy explains ” Most ventures today are only focused on the CCS–they capture CO2 from the source and build a very long pipeline to plum it deep underground. In reality this practise costs a lot of money and takes a lot of energy.” In contrast, she highlighted the potential of CCUS, particularly carbon recycling, which CO2L Technologies is pursuing. She stated, “CCU or cap on capture and utilization considers CO2 as a resource from which one can make economic benefit. With carbon recycling, we try to convert our captured CO2 into useful chemicals, materials, minerals or even fuels.”

TranLy further emphasised, “Our philosophy is that most things we use today are made from elements already available in the air and if we can harness these elements directly from the air, we can replace petrochemical-derived products. It might sound like science fiction, but we’re working to make it a reality. We believe that solving climate change doesn’t require a single silver bullet solution. Instead, our world needs many different small solutions working together.”

However, unlike software startups, hardware-focused climate tech often faces longer development cycles and greater resistance from established industries. TranLy noted,  “Each mistake in technology development carries a high financial risk, making the implementation of new solutions very challenging. The sales cycle can also be lengthy, requiring significant time to prove and gain trust in the technology.”

CO2L’s growth was supported by various incubators and accelerators, with industry-specific programs to respond to the company’s unique challenges. Tranly shared, “I started at Queen’s University Incubator and Altitude Accelerator, later collaborating with Foresight Canada and Venture for Climate Tech to explore the U.S. market. We’ve validated our MVP with GreenCentre Canada and built strong ties with KPMG and Reaction Hub.” These programs for TranLy have been instrumental in building networks and gaining exposure to different markets.

In terms of funding, CO2L has explored various options, focusing on non-dilutive funding in its early stages. TranLy mentioned several programs her firm pursued including National Research Council Canada Industrial Research Assistant Program and the Federal Economic Development Agency for Southern Ontario. Entrepreneurs should research and apply for government grants and non-dilutive funding options- aligning funding strategy with technology development milestones is crucial.

Building a strong support network is essential in the entrepreneurial journey. Partnerships can be key to entering new markets or scaling faster. TranLy emphasized, “Altitude Accelerator has been a tremendous support, providing valuable connections and mentors we continue to learn from. Another thing to consider is that not all similar companies should be viewed as competitors; they can be seen as potential collaborators by examining their value chains more closely, allowing us to create even greater value together.”

The Importance of Diverse Skillsets, and Thoughtful Market Strategy Amidst Uncertainty

As CO2L grew, Tranly recognized the need for skills beyond scientific expertise “Funding is crucial, but equally important is having a diverse skill set for technology development and deployment. Transitioning from a lab-focused role to industry requires expertise in business, marketing, and sales. It’s essential to adapt your commercial strategy, as your initial market may differ from your long-term goals.” Balancing funding with a well-rounded skill set is key to successfully transitioning technology from the lab to the market.

Strategic market entry is also crucial, especially in climate tech. TranLy cautioned against rushing to market with an imperfect product: ” With hard tech and climate tech, if you rush a product to the market that’s imperfect, it could be tricky and potentially damage your reputation in a mature industry.” Entrepreneurs need to balance the pressure to launch quickly with the need for a reliable product. Starting with a minimum viable product (MVP) that addresses a specific need and planning for iterative improvements based on real-world feedback can be an effective approach.

Timing fundraising efforts strategically is crucial. CO2L is carefully planning its next funding round. TranLy shared, “We’re not actively fundraising right now because we’re focused on achieving a key technical milestone. While we’re in touch with various VCs and investors who align with our goals, we plan to start fundraising in the middle of next year.” Moreover, climate tech startups often face uncertainties related to policies and market demand. TranLy mentioned challenges like inconsistent carbon taxes and changing regulations. To address this, entrepreneurs should stay informed about policy changes that could affect their market, develop flexible business models that can adapt to changing regulations, and consider diversifying product applications to reduce dependence on a single market or policy.

The entrepreneurial journey can also be emotionally challenging. TranLy advised, “As a founder, the journey can be stressful and frustrating, so it’s vital to surround yourself with supportive people and prioritize your health. Remember, it’s a marathon not a sprint, and every sales cycle can take years, but together we can support one another along the way.”

Throughout her journey, TranLy has remained focused on creating meaningful impact. She believes in the power of multiple solutions working together: “If each solution can address millions of tons of CO2, thousands of such solutions could collectively tackle the gigatons of CO2 emissions we face.” Entrepreneurs should stay connected to the larger purpose behind their work, consider how their solution fits into the broader ecosystem of climate solutions, and use their impact goals to motivate themselves and their teams during challenging times.

Dr. Anh TranLy’s journey with CO2L Technologies offers a wealth of insights for entrepreneurs in the climate tech space. Her experiences highlight the unique challenges and opportunities in translating scientific innovations into market-ready solutions. The path from lab to market in climate tech is challenging, but with the right approach, it offers the potential for significant business success and positive environmental impact. As the climate tech sector continues to grow, entrepreneurs who can navigate these challenges while staying true to their mission will be well-positioned to make a real difference in addressing climate change.

Watch the Ask the Founder with Dr. Anh TranLy

Altitude Accelerator is committed to supporting cleantech founders through expert advisory services and specialized programming. Our organization offers valuable resources and guidance to help innovators in the clean technology sector thrive and grow. If you’re interested in learning more about how we support cleantech initiatives, please visit our website . To explore our specific programs in greater detail, we encourage you to check out the program page .