Part of Europe: How a Ukraine-based startup is looking to stay plugged into continental markets

I first met Nick and Viktoria Oseyko in Amsterdam in 2019. The father and daughter team were attending Climate Launchpad, a competitive pitch event aimed specifically at cleantech startups.

I spent about half an hour with them, talking about their company Carbominer and the technology it was developing. They were full of optimism about the business potential of what they had to offer.

Carbominer's technology was and is intended for commercial greenhouse owners and operators. Plants grown indoors are subject to fluctuating levels of CO2 in the air around them. Growers looking for the highest yield possible add extra carbon to stimulate photosynthesis and promote faster growth. To provide a sustainable source, Carbominer's machine - now in prototype - extracts carbon from the outside air and injects it into the greenhouse, with energy efficiency being a key factor. Given the demand for additional C02 and its increasing abundance in the atmosphere, Nick and Viktoria Oseyko saw a clear demand in the market.

They still do, but in the years since, the founders of Corbominer have faced setbacks unimaginable to most entrepreneurs. Although sponsored by the European Union, Climate Launchpad – part of a larger Climate KIC initiative – was open to startups beyond EU borders. Carbominer was originally from Ukraine and since February of this year the founders have had to keep the business going and try to build a European presence in the face of Russia's assault on their nation's independence.

So when I met them this week, I was eager to learn about the challenges of building a business that continues to be connected to the European startup ecosystem.

Before the invasion

As Nick Oseyko explains, a lot of progress was made before the Russian invasion. In January 2020, the company raised a funding round. More rounds followed, and to date Carbominer has secured $700,000 from Ukraine's SMRK VC fund. This funding has enabled the company to hire more people. “In September 2021, we built our first machine,” he adds.

Further advances followed. The Ukrainian Academy of Sciences performed measurements and provided initial validation of the technology. In addition, the company presented its technology in Barcelona and was invited by the cement producer CRH to participate in a pilot project in Romania.

The pilot was scheduled for March/April 2022. Then the Russian invasion happened.

The initial impact was the disbandment of the team. Kyiv - where Carbominer is based - came under attack and people moved to other parts of Ukraine and beyond. Today is better. The withdrawal of Russian troops from the north of the country has allowed work to resume, but major problems remain.

The need to travel

Perhaps the most important of these was the ban on foreign travel. "CRH wanted the pilot to be in Romania, but we can't leave Ukraine," says Nick Oseyko.

There is some hope that things will change. As Viktora Oseyko points out, the national government is trying to create a more normal environment in which businesses can operate. "A few days ago there was news," she said. “Ministers have called on businesses to keep operating. If businesses want to do this, it will require traveling overseas.”

As things stand, the first Carbominer pilot is expected to take place sometime in the third or fourth quarter of this year. It is hoped that a second will take place in Austria.

As Nick Oseyko points out, these pilots are extremely important, not least because they enable external validation of the technology. In a market where there are competitors, the key metric is the amount of CO2 produced relative to the electricity needed to supply it. One of the main features of the Carbominer system is that it uses renewable energy and can operate with intermittent power. This reduces carbon production costs.

Find customers

The ability to travel beyond the borders of Ukraine is also important for other reasons. The country has a rich agricultural economy. “But the climate is perfectly suited to open-air farming,” he explains. Nick Oseyko "There aren't many greenhouses...