AI-focused manufacturing process optimization software company Fero Labs announced that it has raised $15 million, with funding aimed at solutions to reduce emissions in the manufacturing industry. 

Founded in 2015, New York City-based Fero Labs develops AI-driven software designed to enhance the efficiency of industrial processes and reduce emissions, with a particular focus on manufacturing sectors that struggle with decarbonization, such as steel, cement, and chemicals.

The manufacturing industry is responsible for 25% of global carbon emissions, with two-thirds of those emissions coming from the manufacture of steel, cement, and chemicals. Fero Labs’ software helps the industry reduce its emissions, and to date the company says it has reduced more than 100,000 tons of CO2 emissions while enabling savings of over $20M for customers.

Berk Birand, co-founder and CEO. Fero Labs, said:

“The industrial sector is notoriously hard to decarbonize, and hardware solutions like carbon capture and storage come with a hefty price tag and daunting implementation process. White-box AI software requires no capital expenditure and can be quickly implemented. This means companies can immediately start reducing emissions and quantify emissions reduction more accurately.”

The funding round was led by Climate Investment (formerly OGCI Climate Investments), with additional investments from Blackhorn Ventures, Innovation Endeavors, and DI Technology. Fero Labs’ total funding to date is now $30 million.

According to Fero Labs, the primary objective of the capital raise is to support the company in deploying new sustainability features to its software that will help commercialize it across key industries. According to the company, its goal is to reduce at least 800,000 tons of emissions by 2025.

Felicity O’Kelly, Investment Principal at CI, said:

“Fero Labs’ AI software materially reduces industrial emissions in some of the highest emitting sectors. The white-box algorithm approach engenders confidence even at the operator level, which is something that we haven’t seen in the market before. Given CI’s focus on driving accelerated carbon emissions reduction through high impact innovations, such as Fero Labs, we’re excited to partner and support the next phase of the company’s growth.”