Canadian clean-tech company Carbonova, which produces carbon nanofibres (CNFs) from greenhouse gas emissions, has closed an oversubscribed C$5.1 million equity financing round backed by a syndicate of strategic and private investors.

The funding follows Carbonova’s recent receipt of $4.38 million in grant support from Emissions Reduction Alberta (ERA), highlighting growing confidence from both investors and public institutions in the company’s technology and commercialisation strategy.

The newly raised capital will support construction of Carbonova’s first commercial demonstration unit, CDU-25, in Calgary. The facility will convert captured CO₂ and natural gas into 25 tonnes of carbon nanofibres per year. Front-end engineering design is already progressing rapidly, with commissioning targeted for mid-2027.

Carbonova’s patented catalytic process produces CNFs that the company says outperform conventional materials such as carbon black, graphite and carbon nanotubes in terms of quality, cost, carbon footprint and ease of integration. The company has already gained commercial traction in markets including plastics and composites, conductive materials for lithium-ion batteries, and construction applications.