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Revolutionizing Fashion: Startup Rubi Turns CO2 into Clothing Fabric, Backed by H&M

March 17, 2026
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Revolutionizing Fashion: Startup Rubi Turns CO2 into Clothing Fabric, Backed by H&M

Key Takeaways

  • Rubi has developed a technology to create cellulose from captured carbon dioxide, addressing the fashion industry's waste and pollution problems.
  • The startup recently secured $7.5 million in funding to scale its CO2-to-cellulose production system.
  • H&M Group, along with other major players like Patagonia and Walmart, are testing Rubi's material in pilot programs.
  • Rubi employs a unique enzymatic process, enhanced by AI and machine learning, offering a potentially lower-cost alternative to existing cellulose production methods.
  • The company has already secured over $60 million in non-binding off-take agreements, indicating strong market interest.

The fashion industry faces increasing scrutiny for its environmental impact, generating substantial waste and carbon emissions. Recognizing the urgent need for sustainable alternatives, companies are exploring innovative solutions, including recycling textile waste and developing materials that don't rely on fossil fuels. Rubi, a pioneering startup, is tackling this challenge head-on with its technology that converts captured carbon dioxide into cellulose, the fundamental component of fabrics like lyocell and viscose.

Rubi's groundbreaking approach involves extracting the core biological processes from cells to create cellulose. This allows any company utilizing cellulose to manufacture products from captured CO2, effectively turning pollution into a valuable resource. The company's co-founder and CEO, Neeka Mashouf, emphasizes the potential to revolutionize textile and raw material supply chains, particularly in regions like the U.S. where textile-grade cellulose pulp production is currently limited.

To further develop and scale its technology, Rubi recently secured $7.5 million in funding, led by AP Ventures and FH One Investments, with participation from CMPC Ventures, H&M Group, Talis Capital, and Understorey Ventures. This investment will support the construction of a demonstration-scale cellulosic production system designed to produce tens of tons of material, using CO2 as the primary ingredient. The system utilizes shipping container-sized modules, with plans to transition to continuous production in the future.

Rubi's technology hinges on a "cascade" of enzymes to process waste carbon dioxide. The company leverages artificial intelligence (AI) and machine learning (ML) to enhance the efficacy and stability of these enzymes. This approach distinguishes Rubi from other startups that may employ engineered bacteria or chemical catalysts to convert carbon dioxide. The use of enzymes also taps into an existing, large-scale industry, potentially leading to lower production costs.

The startup has already garnered significant interest from major players in the apparel industry. Rubi has tested its material with 15 pilot partners, including H&M, Patagonia, and Walmart. Furthermore, the company has secured over $60 million in non-binding off-take agreements, demonstrating strong market demand for its sustainable cellulose.

The concept behind Rubi's enzymatic process emerged from the collaboration between Neeka Mashouf, a materials scientist, and her twin sister, Leila, a medical student at Harvard Medical School. After evaluating various technologies, they concluded that enzymes offered the most promising and cost-effective solution for converting CO2 into cellulose.

While Rubi's initial focus is on apparel companies, the long-term vision extends to providing cellulose to any industry that utilizes it. The company views its technology as a versatile platform for producing a wide range of important chemicals and materials in a low-cost and environmentally friendly manner.

Why it matters

Rubi's technology represents a significant step towards a more sustainable fashion industry. By converting captured carbon dioxide into usable cellulose, the company offers a viable alternative to traditional, resource-intensive methods of fabric production. This innovation has the potential to reduce carbon emissions, minimize waste, and create a more circular economy within the fashion sector, while also providing a new avenue for carbon capture and utilization.

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Marco Rodriguez

Marco Rodriguez

Startup Scout

Finding the next unicorn before it breaks. Passionate about innovation and entrepreneurship.