DTE Materials
Setting the Scene
Concrete is the second most used material in the world, however it’s also responsible for 8% of global greenhouse gas emissions.
Problems with concrete as a building material:
High Carbon Footprint: Cement production releases tons of COâ‚‚, making concrete a major contributor to climate change.
Cost & High Demand: 70% of concrete is made of sand and rock, but demand has surged, increasing the price and decreasing availability.
Heavy: Concrete blocks are dense and costly to transport and install, slowing down construction and increasing labor costs.
This week’s company is using the millions of tons of forestry and agricultural waste to replace sand in concrete, creating a lighter, cheaper, and carbon-negative alternative.
In a Sentence
DTE Materials turns biomass waste into a sand and rock replacement for concrete, cutting costs and slashing carbon emissions.
Biomass Waste: DTE Material’s process converts forestry and agricultural waste into a sand substitute for concrete, while also producing valuable sugars used for cattle feed.
Cutting Costs: By making concrete products lighter, it enables cheaper and faster installation that significantly reduce labor costs, which is the largest component of construction expenses.
Emissions: The resulting material offers a sustainable building solution, with its concrete producing 43% lower carbon emissions.
Bulleted Version:
- Similar to how Beyond Meat utilizes plant-based ingredients to create a sustainable alternative to traditional meat, DTE swaps out sand for biomass waste, keeping the same functionality while reducing environmental impact.
The Basics
- Headquarters: Los Angeles, CA
- Employee Count: 3 full-time, 1 part-time
- Funding amount: $723K + ~$1M in nondilutive grant funding
- Business model: B2B sales of bioaggregates to concrete manufacturers, plus licensing/royalties on final building materials
- Early traction: DTE has already produced 20,000+ concrete blocks, partnered with one of the largest building materials companies in North America, and is going to market with Basalite to fulfill pilots with DR Horton and USC/LA County.
Due Diligence
WHAT WE LIKE
Market Opportunity: Concrete is a $402 billion global industry, and demand for low-carbon alternatives is rising due to government regulations and corporate climate goals.
Biomass Waste: The U.S. produces over 100 million tons of surplus biomass waste annually, creating a low-cost, scalable alternative to sand and rock aggregates while reducing emissions and wildfire risks.
Lighter and Cheaper: By replacing sand and rock aggregates with bioaggregates at 1/5 the density, DTE’s material makes concrete blocks 20% lighter, cutting transportation costs and installation time, which lowers labor expenses, the biggest cost driver in construction.
POTENTIAL RISKS
Building Code Approvals: While DTE is focusing on concrete blocks since the approval process is faster than ready-mix concrete, full adoption still requires IRC/IBC compliance, which can be a slow regulatory process.
Risk Averse Industry: Construction is slow to adopt new materials, and while DTE’s solution is seamless, builders and manufacturers may need more real-world proof before scaling up.
Securing Long-Term Biomass Supply Contracts: While biomass waste is abundant, locking in consistent, large-scale sourcing agreements will be key to meeting growing demand.
Founder Profile
Jose Urizar, CEO: Previously researched structural engineering and construction at Cal Poly San Luis Obispo.
Tanner Jolly, CTO: Previously a Materials Scientist at Cal Poly San Luis Obispo.
Comps
Blue Planet Systems: Backed by Signina Capital, Marathon Petroleum, Chevron Technology Ventures, and For Good Ventures.
Neolithe: Backed by Otium Capital, Andurance Ventures, RGreen Invest, Crédit Mutuel Impact, and Tivoli Capital.
Neustark: Backed by UBS, Decarbonization Partners, Innosuisse, Technology Fund, MassChallenge, and others.
Why DTE Materials
By transforming biomass into cost effective and sustainable concrete materials, DTE is set to build out a new future for the materials industry.
