BOSTON–Sublime Systems, the Somerville-based green cement startup, has halted construction of its first commercial facility in Holyoke, MA and will lay off roughly 10% of its workforce, as reported by the Boston Business Journal (BBJ).
The pause follows the rollback of an $87 million federal award in June, part of a broader $3.7 billion cut across 24 projects by U.S. Secretary of Energy Chris Wright, according to BBJ. The funding had been expected to cover half the cost of the Holyoke plant, which was slated to begin commercial production of Sublime’s low-carbon cement in 2027 or 2028.
“With the cancellation of our federal OCED award … we are forced to consider alternative approaches to our demonstration project,” the company said in a statement quoted in the BBJ. Sublime noted that the loss of federal support created significant challenges in assembling the necessary capital to continue construction.
Sublime Systems currently employs around 128 workers, and the 10% reduction reflects the company’s efforts to recalibrate after the funding setback, according to BBJ.
Despite the pause, the company says it is not abandoning its plans for the Holyoke facility. A Sublime spokesperson told the Boston Business Journal that the company is “pursuing multiple avenues to backfill the funding that was terminated” and remains committed to bringing the project online. Sublime also plans to continue working with the U.S. Department of Energy to demonstrate how scaling its technology could help onshore production of a key building material and support U.S. manufacturing jobs.
The Holyoke plant had attracted early commercial interest. Earlier this year, Microsoft signed a binding agreement to purchase 622,000 tons of Sublime’s green cement, which the company told the BBJ would come from the planned Holyoke facility and a subsequent full-scale production plant.
The operational pause also comes amid a leadership transition. In November, Rob Davies, formerly the company’s chief operating officer, was named CEO, succeeding co-founder Leah Ellis, who had led Sublime Systems since its 2020 spinout from MIT co-founder Yet-Ming Chiang’s lab.
While the company explores alternative funding strategies, Sublime Systems says it remains optimistic about advancing its mission to commercialize low-carbon cement at scale—a goal that industry experts and climate advocates continue to watch closely.
