Funding supports SCO2’s Nextract Technology rollout

LITTLE CANADA, MINN. — SCO2 has raised a $2.7 million seed round to accelerate the commercialization of its Nextract Technology. The funding round also will enable the company to strengthen its customer partnerships, advance projects from evaluation through deployment and establish the operational capacity needed to support continued growth, the company said.

SCO2, which said it has been funded by family, friends and small investors since launching in 2019, is an industrial technology company that takes biomass and turns it into high-value ingredients.

“At a time when volatility is the new normal, major food companies are scrambling to adapt to preserve shrinking margins,” said Michael Sigel, chief executive officer at SCO2. “When we deploy Nextract Technology, our clients see an exponential shift in value. A byproduct that was an expense or $100/ton of animal feed, is converted into $5,000/ton of functional ingredient revenue. When you have tens of thousands of tons annually, that adds up.”

SCO2 works with producers and distributors of high-volume cold brew, wheat and pasta, nuts and cacao, peas, legumes and other plant-based protein products by licensing its technology and systems and integrates it into customers’ existing facilities and factories.

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