Nemo, co-founded by Daniel Liss and Michael DuBose, is poised to disrupt the steel industry. They are going to use artificial intelligence (AI) to improve efficiency in the production of pig iron. The company’s goals are nothing short of audacious! Instead, they would construct their own natural gas powered furnaces, which is much cleaner than coal and releases up to 50% less carbon dioxide. That’s the goal of this innovative approach to modernize an industry that Liss describes as “woefully outdated.”
Nemo has already shown some serious financial muscle, raising $28.2 million in its first two funding rounds. The startup is keeping in close contact with the investors that have already signed up. They are raising the target of that round up to $100 million of Series A funding. Nemo will now get a major capital injection it needs as it aims to build out three plants in the next 15 years. This new initiative is poised to benefit from over $1 billion in conditional incentives offered by a pair of southern states.
Nemo’s passion to construct these plants is what fuels the carrots. They should include best available carbon capture technology that will help them lower pollution. Tax incentives created by the Inflation Reduction Act have further improved the financial outlook for these projects. Today, carbon capture has transformed into an incredibly lucrative endeavor for enterprises such as Nemo.
Liss, who as a founder of a social media platform knows tremendous potential in applying ai to the steelmaking process. He argues that companies leveraging AI from their inception can achieve a “20% to 30% margin advantage” over their competitors. That technological advantage may be key in an industry that has long been slow to adopt modernization.
“These plants are run on, at best, Excel spreadsheets. At worst, clipboard technology,” – Daniel Liss
Michael DuBose, Liss’s partner at Nemo, offers deep experience from his years at Cheniere Energy, a natural gas company. His expertise in how energy is produced will be particularly helpful as Nemo begins the tricky process of converting its operations towards a mostly natural gas-fueled operation.
Using rhetorical devices that compare Nemo to other historic American titans of industry, Liss highlights what could be an immense return on investment. He reflects on the legacy of influential industrialists like the Rockefellers, Carnegies, Melons, and Fricks, stating, “Ultimately, what were the Rockefellers and the Carnegies and the Melons and the Fricks investing in? The dollar amounts are so big in these categories.”
As Nemo gets ready to dive into this ambitious endeavor, it truly sits at the crossroads of high-tech and old-school manufacturing. Using natural gas furthers our environmental goals and that’s why it’s a win-win. Beyond that, it casts the company as an innovative leader in a sector that is in dire need of innovation.
