How CarbonScape is fostering a sustainable future for NZ’s bioeconomy

The CarbonScape team at the Riverlands plant near Blenheim.

The science backing up the facts of global climate change has long been beyond dispute – but the warnings that come with those facts have never been clearer, more present, or more urgent.

To address the long-term impacts of a warming planet, humans must reduce our collective carbon emissions by weaning ourselves off fossil fuels. It follows that the long journey to a more sustainable future will be driven in electric vehicles, essentially taking carbon emitting fossil fuels out of the equation.

But what about the batteries that power those vehicles? It’s often recognised that the batteries used in EVs come with their own set of hazards that are potentially dangerous to the environment. So, is it possible to make them more sustainable?

If Oliver Foster has anything to say about it, it’s going to be the small Blenheim-based biotech company he manages that will lead the way in doing just that.

Founded in 2006, CarbonScape grew out of the idea that with the right processes, it is possible to make useful products from carbon recovered from locally sourced by-products of the forestry industry, such as wood chips and sawdust.

Today, after nearly two decades of research and development in this direction, the company is focused on converting that carbon into a high-performance biographite anode material that is a key component in the lithium-ion batteries that power electric vehicles.

While the company’s journey took a variety of paths over their first decade, it has been Foster’s influence on CarbonScape’s direction since joining the company in 2016 that has been the driving force behind their growth.

He says it is “key decisions around strategy, focus, and talent acquisition that have collectively shaped CarbonScape’s brand and positioned us where we are today: at the forefront of sustainable graphite production for the rapidly expanding battery market.”

Foster’s own journey to CarbonScape began in the oil industry, where he worked as a graduate petroleum geologist on offshore exploration rigs. It was this hands-on experience that laid the foundation for his understanding of the energy sector.

“In 2001, I made a pivotal shift into investment banking, taking on the role of an energy analyst at a boutique natural resources firm in Australia. This move combined my practical, science- based background with the world of finance, launching an 11-year career that coincided with dynamic shifts in equity markets and energy prices.”

This time as an energy analyst proved invaluable for Foster, offering him a panoramic view of the industry.

“This experience equipped me with the strategic insight and financial acumen that would later prove crucial when I encountered CarbonScape in 2016.”

A serendipitous meeting with a mutual connection in Marlborough introduced Foster to the company at a critical juncture, as they were grappling with various carbon products and still confined to lab-scale operations.

“Where others might have seen challenges, I saw untapped potential,” he says.

“The company’s technology platform held the promise of producing high-grade graphite anode from sustainable feedstock, which perfectly positioned them to serve the burgeoning lithium-ion battery market.”

Since that time, CarbonScape’s journey has been one of evolution and strategic pivots.

For Foster, two key decisions stand out as particularly consequential, the first being CarbonScape’s early alignment with New Zealand Steel to develop Green Coke for steel production.

“This partnership was crucial in our formative years, allowing us to establish a robust R&D platform for biomass carbon refining and recipe development. This foundation has proven invaluable in our subsequent work.”

But it was the company’s decision in 2016 to shift focus to high-grade graphite production that he calls the game-changer.

“This move aligned us with the growing demand in the lithium-ion battery sector and has shaped our trajectory since.”

Foster says that while the company’s primary focus remains on developing and bringing their graphite anode for lithium-ion batteries to market, they are excited about several other innovations that are in the pipeline.

“We’re also looking at graphite recycling for lithium-ion batteries, which addresses the growing need for circular economy solutions in the battery industry. Silicon-blended biographite anodes are another area which has the potential to significantly improve battery performance.”

He says they are also looking at biographite for sodium-ion batteries and products using alternative carbon feedstocks, as well as exploring options like carbon black from recycled tires, which offer both environmental and performance benefits.

“While these projects are still in various stages of development, they represent our commitment to innovation and our long-term vision for diversifying our product range. Our approach is to maintain a balance between focusing on our core product and investing in future technologies that could drive our growth in the coming years.”

Foster is the first to acknowledge that the innovation journey rarely follows a straight road and that it’s critical to balance ambition with pragmatism. He is candid about the key lessons the company learned from some early mistakes.

“One of our most significant early mistakes was spreading ourselves too thin with multiple product offerings instead of focusing on commercialising a single product. This lack of focus diluted our efforts and resources, slowing our path to market,” he says.

“Since our pivot to concentrate on graphite, we’ve learned the value of a laser-focused approach. Channeling most of our energy into this single product has meant we’ve not only accelerated our progress, but also simplified our story for prospective investors.

“Having an innovation pipeline for next-generation products is important to demonstrate growth potential, but it shouldn’t come at the cost of bringing your core product to market.”

“We’ve learned that success often comes from doing one thing exceptionally well before diversifying. This focused strategy has streamlined our operations, clarified our messaging, and ultimately positioned us better for success in both product development and fundraising.”

Foster says an equally important aspect of the company’s growth has been their approach to building their team.

“Key hires from 2018 onwards have been instrumental in driving our progress. Process Engineer Gabriel de Klerk, CEO Ivan Williams, and graphite expert Dr. Heinrich Badenhorst were early examples of the high-calibre talent we’ve brought on board,” says Foster.

“These individuals, along with all our subsequent hires, have contributed critical expertise, leadership, and diverse skills that have been fundamental to our success. Our commitment to attracting and retaining top talent across all levels of the organisation continues to be a cornerstone of our growth strategy.”

Looking to the future, Foster is firm in his belief that the bioeconomy presents a significant opportunity for New Zealand to diversify its export economy, create high-value jobs, and contribute to global sustainability efforts.

“Our country’s unique combination of abundant natural resources, strong agricultural base, and commitment to sustainability positions us well to become a leader in this emerging sector.”

“The combination of these factors creates a unique environment where biotech companies can thrive. It allows us to punch above our weight on the global stage, turning our size and location from potential disadvantages into strengths,” says Foster.

“For CarbonScape specifically, this ecosystem has enabled us to develop our innovative graphite production process, leveraging local resources and expertise while addressing global challenges in battery technology and sustainability.

“Companies like ours are just the beginning of what could become a thriving sector, showcasing New Zealand’s innovative spirit and commitment to a sustainable future.”

Foster says the company’s vision of marrying innovation with sustainability, and creating value while addressing urgent environmental needs, is what keeps him deeply committed to CarbonScape’s work in the cleantech space.

“What ignited my passion at the start of my career – and what continues to fuel it today – is the opportunity to transform CarbonScape into a commercially successful and meaningful enterprise,” he says.

“Our mission extends beyond profit margins – we are driven by the potential to make a tangible, positive impact on our planet.”

“As we navigate the complexities of scaling our technology and bringing our products to market, I’m more convinced than ever of the vital role companies like CarbonScape play in shaping a sustainable future. It’s this blend of commercial promise and environmental stewardship that makes our journey not just exciting, but profoundly important.”

Story by Brendan Boughen