Sustainable Pretred secures $3m funding from Heritage Group
Pretred, a Colorado-based company that produces industrial barriers from 95% recycled materials, has announced a $3 million seed investment led by HG Ventures, the corporate venture arm of The Heritage Group.
Pretred will use this investment to scale its US-based tyre and plastic recycling process to meet growing demand for green construction products. Pretred is a graduate of the 2020 cohort of The Heritage Group Accelerator Powered by Techstars, a program for mentoring and developing early-stage companies in the hardtech industries of advanced materials, infrastructure, and environmental services. To watch a video about its prototype products, click here.
Tyre waste has become a worldwide environmental challenge, with more than 1 billion sent to landfill or burned every year. The Pretred technology recycles approximately 65,000 tyres for every mile of barriers (880 barriers), or 75 for every six-foot barrier. These barriers reduce 98% of equivalent CO2 emissions compared with concrete barriers, providing a sustainable product for use in construction, roads, parks and beyond.
"By successfully raising our seed round, we can accelerate our scale up and deploy our barriers and blocks in markets that are in immediate need of high-performance sustainable materials," said Eric Davis, CEO at Pretred. "We value our partnership with The Heritage Group and have already tapped into their technical and market expertise in construction materials and the circular economy."
"We are thrilled to have the opportunity to invest in Pretred, as we have been impressed with the creativity, experience and passion of their management team," said Ginger Rothrock, Senior Director at HG Ventures and Pretred board member.
"We believe that Pretred is a pioneer in the manufacture of green construction materials by fashioning beautiful, rugged, and environmentally-responsible construction products from some of the worst polluting materials in the world." Generally, HG Ventures will invest up to $20 million in each portfolio company, but it has the "ability to invest more" depending on the opportunity.
The United Nations Environment Programme estimates that the construction industry accounts for 36% of global energy consumption, and approximately 40% of global carbon dioxide emissions.
Materials manufacturer Covestro recently introduced its first material developed by the additive manufacturing business recently acquired from DSM: a glass-fiber filled recycled polyethylene terephthalate (rPET) for 3D pellet printing. Made from post-consumer PET waste, Arnite AM2001 GF (G) rPET perfectly fits Covestro’s vision for a Circular Economy.
Alongside recycling, suppliers are turning more to prefabrication, BIM and integrated design in a bid to reduce their carbon footprint and enhance sustainable construction methods.
Building prefabricated modules offsite can speed up the construction process by as much as 50% and cut costs by up to 20%.
Read more on the growth in remote and modular construction in the June issue.
Design is most important issue in determining GHG emissions
Design is the most important factor in determining greenhouse gas (GHG) emissions over a building’s lifetime and by the time the construction process begins, the majority of decisions affecting the project’s GHG emissions are locked in.
That is one of the key message from McKinsey's Seizing the decarbonization opportunity in construction report, which stresses the ability to influence a building’s lifetime emissions is highest very early in a project and before construction has started.
Fundamental design decisions, such as new construction versus upgrading, building size and shape, level of insulation, and floor-space flexibility, can have a significant impact on emissions for decades to come. If left unaddressed, the construction ecosystem’s carbon output is expected to grow over the next 30 years as we seek to meet the demands of an expanding population and increased urbanisation.
On a positive note, this opens opportunities to optimise new builds, while a simultaneous shift toward renewable energy will help to mitigate emissions. New build construction is responsible for more than 2.5 gigatons of CO₂e globally (5 percent of total GHG emissions) and the smart-buildings segment is expected to grow at 10-13 percent CAGR until 2025.
With power-system decarbonization leading to a reduction in emissions by 2050, the need to eliminate annual emissions remains significant for the construction and real estate ecosystem to meet the 2016 Paris Agreement’s 1.5-degree warming target.
GHG emissions from the construction ecosystem are mainly driven by two components: raw-material processing for buildings and infrastructure (about 30 percent of total construction emissions per year, largely cement and steel) and buildings operations (about 70 percent), the report notes.
The contribution from raw materials comes primarily from energy-intensive cement production and through metals (about 50 percent of global steel production is used for construction), which contributes almost 7 percent of global GHG emissions. The contribution from commercial and residential building operations is mainly driven by space and water heating within buildings, heat leakage due to poor insulation, and other energy usage such as lighting, air conditioning, and appliances.
The report states decarbonization of materials can be achieved through a combination of several main measures:
- Demand reduction and circularity Lowering demand for primary resources through design and process optimization (including reduced waste, improved building footprints, and limited overspecifications), and by increasing closed-loop circularity for materials and components (including increased usage of scrap material and reduced recycling-yield losses). Using generative design to create outcome-based designs that help frame and clarify how different materials and design choices can lower GHG emissions
- Optimizing construction and material Shifting commonly used materials and equipment to alternatives that are more energy efficient, including substitution by low-carbon materials, higher-performing materials, and electrification of heavy equipment. Pushing toward productization of projects, modularization, and off-site construction to reduce the overall footprint of the construction process
- Material decarbonization Reducing emissions during production of required materials, including increased production efficiencies, electrification of processing equipment, and technology advancements
The pathway for this vision of net-zero carbon buildings at zero cost increase may require a rethinking of basic principles and a combination of existing and alternative materials, it adds.
In conclusion, the construction industry is experiencing multiple disruptions, but the drive to sustainability is racing ahead. "Change is arriving quickly, and we are already seeing many modifications to new and existing projects. Accelerating this journey and addressing the challenge head-on will be key."