5 startups from Luxembourg changing the approach to sustainability

Luxembourg's eco-startups are applying their innovations not only locally, but also at the EU and global level. Despite the modest size of the state, world-class projects are being implemented here - from the production of green hydrogen from waste to high-precision climate monitoring systems from space. This concentration of technologies, coupled with government support, makes Luxembourg a kind of laboratory for sustainable development.

Key environmental trends

Current trends in environmental technologies in Europe are driven by the objectives of the European Green Deal and the pursuit of carbon neutrality. In Luxembourg, the following trends are most actively developing:

It is important to note that Luxembourg's ecosystem covers almost all areas of cleantech. According to Luxinnovation, there are hundreds of companies and startups operating in the country in the fields of sustainable construction, agritech, energy transition, water treatment, zero waste, smart cities, eco-mobility and circular economy.

Luxembourg startups changing sustainable development

There are a lot of environmental start-ups, so we will look at ten of them, which we think are the most interesting from the point of view of business and contribution to the country's environmental picture. Each of them is implementing an innovative technology, solving a specific problem and has already achieved a tangible sustainable effect: from CO₂ emission reduction to resource conservation. We will look at their main products, sustainable impact, the support they have received (acceleration programmes, EU grants, investments) and the challenges they face in scaling up.

Boson Energy (2008) - hydrogen from waste

Boson Energy is one of Luxembourg's cleantech pioneers, founded in 2008 by Jan Grimbrandt and Professor Wlodzimierz Blasiak. The company has developed a plant that converts unsorted waste and biomass into green hydrogen and thermal energy using plasma gasification. This technology makes it possible to produce hydrogen locally, right in cities ("IMBY - In My Backyard"), avoiding the costs and emissions of transporting hydrogen over long distances. In addition, the problem of waste itself is solved - instead of going to landfill, rubbish becomes a raw material for clean energy.

According to the founder, 1 tonne of waste treated using Boson's technology can replace more than 5 barrels of oil in terms of energy output. The process is not only neutral, but also carbon negative: when 1 tonne of waste is gasified, the plant additionally captures ~1 tonne of CO₂, which compares favourably with incineration or landfill. The remaining mineral residue is melted into inert glass suitable for reuse - thus closing the waste cycle completely.

Boson Energy is attracting the attention of major industrial partners. A key investor and ally was Paul Wurth (Luxembourg's engineering giant), which became Boson's shareholder. Integration with Paul Wurth's expertise helped accelerate the technology's launch into the international market. Today, Boson Energy is ranked among the 100 global innovations for restoring the planet by the French organisation 2050NOW. The main challenge for the company is capital intensity: the introduction of hydrogen plants requires significant investment and changes to the usual energy supply infrastructure. Nevertheless, the success of pilot projects and participation in the formation of Luxembourg's hydrogen strategy give the startup momentum. Boson Energy demonstrates how a small country can become a testing ground for green hydrogen, providing the world with a model for recycling waste with economic and environmental benefits.

WEO (2020) - climate analytics from space

WEO is a startup offering cities and businesses "environmental analytics from satellites". Founded in 2020 by Imeshi Weerasinghe and Charlotte Wirion, who realised while working on their PhD in Brussels that satellite data could be applied to make cities more sustainable. WEO uses Sentinel's public Sentinel satellite imagery and AI to routinely monitor the environment - from the health of urban trees to surface temperature and flood risk. The company's algorithms enhance the resolution of free satellite imagery and turn it into understandable maps for management decisions.

Already today, WEO solutions are helping a number of cities in Luxembourg (Luxembourg, Dudelange, Sanem, etc.) to manage green spaces and stormwater drainage more efficiently. For example, the TreeMonitor service, funded by the European Space Agency, tracks the growth and health of urban trees, which is important for preventing urban overheating and flooding. WEO has also created maps of impermeable surfaces for Brussels, helping to assess flooding risks. In 2023, the startup was globally recognised, winning the World Summit Award in the Sustainable Cities category for its contribution to the UN SDGs (Goals #11 Sustainable Cities and #13 Combating Climate Change)

WEO's success is largely fuelled by Luxembourg's startup ecosystem. The project graduated from the state accelerator Fit 4 Start (Data/Cosmos track) and was incubated in the Luxembourg City Incubator. This gave access to mentors and an initial grant of €50k. In addition, participation in EU competitions helped to attract grants: WEO's solution won 1st place in the Copernicus Masters 2022 competition and won the SPOTTED 2023 European Challenge. The main challenges for WEO now are scaling services to commercial markets and competing with large global data providers. However, the team has already formed strong relationships with municipalities and agencies (ESA, Luxembourg Ministry of Environment), which provides credibility for their products. "The Fit4Start programme gave us a strong boost at the beginning of our journey, and Luxinnovation's support helped take the innovation to the next level," notes co-founder S. Virion. WEO shows how Luxembourg's spacetech competences contribute to sustainable urban development.

Keiryo Packaging (2013) - less plastic for the same properties

Keiryo Packaging Technologies is tackling the problem of plastic waste by offering packaging manufacturers a new method of moulding polymers. Founded around 2013 by engineer Tangui Van der Elst, the company has developed patented technologies to produce plastic containers with the same strength but lower weight. Keiryo utilises the science of polymer rheology: by acting on the plastic melt during the moulding process, a more ordered molecular structure can be achieved. As a result, the walls of bottles or packages are thinner, but retain the necessary strength and barrier properties.

This innovation has a double benefit - environmental and economic. Manufacturers can reduce plastic consumption by 10-30% per unit of product, thereby reducing both raw material costs and the carbon footprint of packaging. In essence, Keiryo "lightens" plastic (the company's name is from the Japanese word keiryō - "weight reduction") without sacrificing quality. This reduces plastic waste and the need for virgin plastic from petroleum. The company's mission, as its founder says, is to "improve material efficiency to simultaneously reduce environmental impact and production costs."

Over the years, Keiryo has amassed an impressive portfolio of over 120 patents for its inventions. The startup has attracted over $5.6 million in investments for technology development. Investors include both professional funds and industry representatives. For example, Stéfan Descheemaeker, a former top manager of a large food company, invested and joined the board of directors. He notes that Keiryo's solutions are unique in that they "deliver tangible environmental benefits while making good business sense, which is critical for mass adoption." The company has been recognised by the Solar Impulse Foundation (a B. Piccard initiative) as an effective environmental solution, confirming its contribution to sustainability.

The main barrier for Keiryo is the conservatism of the packaging industry. Manufacturers are reluctant to change established processes. Keiryo has therefore chosen a strategy of licensing technology and selling off-the-shelf modules that are compatible with existing equipment in factories. This approach facilitates implementation - the company "does not break processes, but only improves them". Pilot projects have already been conducted with large plants, showing successful weight reduction of PET bottles. Looking ahead, Keiryo plans to expand into the global packaging market, where solutions to meet ESG targets are in demand. This start-up demonstrates how deep science in polymers can have great application value - reducing plastic today leads directly to a more sustainable economy tomorrow.

Circu Li-ion (2021) - extending the life of lithium batteries

Circu Li-ion is a startup that is revolutionising the handling of spent lithium-ion batteries. Founded in 2021 by Antoine Welter and Xavier Kohll, Circu Li-ion has developed an automated platform to disassemble and diagnose batteries at the end of their lifecycle. The system uses robotics and machine learning to disassemble the battery down to the individual cell level, thoroughly testing each cell and identifying usable cells for reuse. The unusable parts are recycled for valuable materials. In this way, instead of traditional disposal ("shredding and melting"), the company realises the concept of upcycling batteries, thus extending their useful life.

The environmental impact is clear: reusing cells reduces the need to manufacture new batteries, thus reducing the mining of lithium and other metals, saving energy and reducing CO₂ emissions by almost 50% compared to the full cycle of creating a new battery. According to Circu Li-ion, their process allows up to 90% of battery cells from blocks that would otherwise go to waste to be put back into business. The remaining 10 per cent of materials are not lost either - they go to industry for recycling. This minimises toxic waste and supports the circular economy in the battery industry.

In a short time, the startup has gained serious support. Circu Li-ion passed the Fit 4 Start accelerator and soon became one of the first Luxembourg companies to win the prestigious EIC Accelerator grant from the European Commission. At the end of 2022, the project received mixed funding (grant + equity) from the EIC: grant support and an investment component that helped attract additional private investors. According to CEO Antoine Welter, "the EIC funding will allow us to focus on industrial scaling of the technology and maximising the monetisation of the data collected." Circu Li-ion had previously raised €8.5m in seed investment from venture capital funds to expand its team and build a pilot line in 2022. The startup has also secured support from EIT Urban Mobility - it participated in their programme, gaining access to a network of electric vehicle partners.

The main challenge ahead is scaling up to the industrial level. Today, Circu Li-ion successfully services batteries from electric bicycles and power tools, but the next step is to move into large electric vehicle batteries. This will require new engineering and certification of the process to the automotive industry. Also, the battery recycling market is still being shaped by EU regulators, and it is important for the startup to take a pioneering position. However, Circu Li-ion is already working with electric vehicle and energy storage manufacturers, laying the groundwork for widespread adoption. The founders' goal is to recycle 3 billion batteries worldwide by 2035, which speaks to the scale of the vision. This startup illustrates how a high-tech economy can be both profitable and hugely beneficial to the environment.

Databourg Systems (2017) - monitoring rainstorms via satellites

Databourg Systems is a spin-out from the University of Luxembourg that has managed to turn a scientific idea into a commercially successful climate service. The startup was founded in 2017 by Dr Ahmad Gharanjik as a spin-off from the research centre SnT (Interdisciplinary Centre for Security, Reliability and Trust). The company specialises in monitoring rainfall and extreme weather events using an unconventional approach: Databourg uses data from satellite telecommunications signals to measure rain intensity. When it rains, the radio waves from the satellites are slightly attenuated - by analysing these deviations, Databourg's algorithms can accurately calculate the amount of rainfall in real time. The technology is patented and provides data where there are no ground-based weather sensors.

The startup's main product is RainVision, a platform that warns of heavy rains and floods and provides accurate localised rainfall summaries for agriculture, water management and infrastructure. The solution has proven to be in demand in regions with tropical climates and frequent natural disasters. Databourg has already deployed monitoring systems in Southeast Asia (Philippines, Indonesia) and Brazil. In 2024, the startup joined the international Komunidad Group, a Singapore-based company that provides a climate analytics and early warning platform. The deal strengthened its global presence: together with Komunidad, Databourg now processes data from more than 50,000 satellite terminals, covering entire countries. RainVision has become part of a wide range of climate services, and Databourg's Luxembourg office will be developed as the European hub of the Komunidad group.

From a sustainability perspective, Databourg's technology enhances climate adaptation - early detection of heavy downpours can prevent agricultural losses, optimise reservoir management and save lives through timely flood warnings. Unlike traditional radars and sensors, the startup's solution does not require large equipment costs, utilising the satellite infrastructure already in place. The main challenge for Databourg is the need for continuous innovation leadership. Big players (e.g. national weather services) can develop similar methods, so the startup is investing in R&D, integrating artificial intelligence to improve the accuracy of forecasts. Flexibility for different regions is also important - the startup is already adapting the service for cities in Europe, where interest in accurate rainfall monitoring is growing. "Joining forces with Komunidad is a natural step that will strengthen our scientific capabilities with data from Asia and allow us to scale the social impact globally," said CEO A. Garandzik. The Databourg story is an example of how a globally sought-after innovation is born at the intersection of space technology and climate science.

Luxembourg's financial and regulatory environment for Greentech

Luxembourg is actively building a favourable ecosystem for greentech startups. Luxembourg is actively building a favourable ecosystem for greentech start-ups. The country is deliberately creating ideal conditions for the growth of green technology companies by combining financial incentives and institutional support.

Accelerators and incubators

The flagship support programme is Fit 4 Start. This state accelerator gives young companies intensive mentoring and grants of 50,000 euros without the requirement of a stake in the business. Although the programme initially focused on digital projects, it now actively supports Greentech and SpaceTech startups. Many successful projects, such as WEO and Circu Li-ion, have come through Fit 4 Start.

There are also specialised incubators, including the Luxembourg City Incubator and Technoport. They provide offices, expertise and help to network in the industry. The Innovation Hub Dudelange has a particular focus on environmental technology, offering flexible sites for start-ups.

Grants, subsidies and R&D support

The Luxembourg government, through the Ministry of Economy and the Luxinnovation agency, offers a variety of financial programmes. Startups can receive research grants (up to 50% of R&D project costs) and eco-innovation subsidies. For example, in 2023, several consortia received €10.5 million for 5G projects involving startups.

The Luxembourg Future Fund is also active, investing in venture capital funds and directly in promising sustainability startups. Luxembourg companies are also successfully implementing international EU grants - for example, Circu Li-ion and Arspectra were the first Luxembourg companies to win EIC Accelerator grants. Luxinnovation actively assists in applying for European programmes like Horizon Europe, significantly increasing the chances of success.

Private investment and green finance

Luxembourg has a growing number of private venture capital funds and business angels interested in sustainable development. An example of corporate investment is Paul Wurth's investment in Boson Energy.

Luxembourg's status as an international centre for green finance plays a special role. Funds managing capital for climate projects are concentrated here, and half of the world's green bonds are listed on the Luxembourg Stock Exchange. This attracts impact investors who find local startups through various forums and initiatives. For example, SustainCERT, a Luxembourg-based carbon credit verification startup, has raised $10 million, including from ESG-focused funds.

Regulatory stimuli

The government creates a favourable regulatory climate for innovation by applying a policy of technology-neutral regulation. This allows new technologies, be it hydrogen plants or carsharing services, to be tested in "sandboxes" without unnecessary bureaucratic barriers. Tax breaks incentivise R&D (up to 80% of profits from patented environmental technologies can be exempt from tax).

Strategic documents such as the National Energy and Climate Plan create demand for startup solutions. The goal of 25 per cent renewable energy by 2030 is fuelling the development of technologies like SolarCleano. And the commitment to zero landfill is opening up the market for projects like Boson Energy and Circu Li-ion.

Clusters and international linkages

Luxinnovation oversees the CleanTech and Space clusters, bringing together industry players and facilitating the search for partners and customers. Luxembourg is actively involved in international partnerships, for example with the European Space Agency (ESA) and membership of EIT Climate. This makes it easier for startups to enter the European arena. Starting from a small country, projects immediately target the EU scale, gaining access to test sites and foreign customers through digital innovation hubs.

All in all, Luxembourg offers a "comfortable hothouse" for environmental start-ups: financial support, friendly regulation, access to international networks and a solvent market for pilot projects. With a population of only about 645,000, it is no wonder that there are at least 50 sustainable start-ups and that the country has established itself as the "green gateway" to Europe for climate innovation.

Challenges and prospects for scaling up

While Luxembourg greentech startups have significant advantages, there are also typical industry challenges standing in their way.

Despite these challenges, the outlook for Luxembourg-based eco-startups is very positive. Many of them are globally oriented from the start and fit into the global trends of decarbonisation and the circular economy. Participation in European networks opens access to international consortia and customers. The Luxembourg government continues to step up its support, launching new funds and working to create a Green Tech Innovation Valley. If startups overcome the challenges of scaling up, their contribution to sustainable development can be transformational.

Luxembourg's environmental technology startups clearly demonstrate that the scale of impact does not depend on the size of the country. In recent years, a community of innovators has emerged in the Grand Duchy to tackle the most pressing environmental challenges - climate change, waste, energy transition - with cutting-edge technologies. These companies are already achieving remarkable results, reducing CO₂ emissions, saving resources and making cities smarter and greener.

The successes of Circu Li-ion, Boson Energy, WEO, Keiryo and others have been made possible by Luxembourg's holistic approach to the development of the greentech sector. The state has created a favourable environment where innovation is supported by funding and flexible regulation, and sustainability is a political priority. Importantly, sustainability is also integrated into the business culture: investors, corporations and government contractors value the ESG factor, which gives eco-innovations a better chance of being supported.

Of course, there is still a long way to go. But we can already say that Luxembourg has made a real contribution to the ESG agenda, providing the world with a number of innovations: from carbon-negative hydrogen plants to climate monitoring platforms and robotics for solar energy. These solutions do not remain on paper - they work here and now, bringing us closer to the goal of a sustainable future.