Answer extracted from the The Pitch podcast — listen to the full episode below.
Ventrix operates on a leasing model with a one-off installation fee of £20,000 covering scaling costs, plus annual recurring revenue between £5,000 and £15,000 per year depending on unit volume. Customers currently paying £200 to £2,500 per ton of CO2 see cost reductions of 50–60% while Ventrix maintains significant margin on each contract.
The £20,000 upfront installation fee removes the barrier of large capital expenditure for breweries and food producers adopting Ventrix's technology. This covers the deployment costs associated with integrating the modular unit into a customer's existing operations, regardless of their production scale.
Annual recurring revenue scales with leasing volume, typically ranging from £5,000 to £15,000 per unit annually. A Welsh brewery contracting with Ventrix, for example, committed to a £10,000-per-year arrangement for capturing between 20 and 40 tons of CO2 annually—units capable of producing 60 to 120 tons per year give customers flexibility to expand without renegotiating terms.
The revenue model delivers immediate savings to customers. Those accustomed to market-rate CO2 supply—typically £200 to £2,500 per ton, rising to £5,000 during shortages—can reduce their outlay by half through Ventrix's onsite generation. The company maintains healthy unit economics: a unit costs approximately £40,000 to build initially, but manufacturing at scale targets £20,000 per unit, creating a sustainable gross margin while keeping customer pricing competitive.
As Sonny explains in the episode, this dual benefit—customer savings and company profitability—demonstrates why industrial CO2 producers lack strong incentives to innovate, and why a decentralised, leasing-based model disrupts the billion-dollar traditional gas plant ecosystem.
"We can cut the deployment time from years to days, and reduce CO2 costs by up to 50% for our customers."
Sonny — Co-founder and CEO, Ventrix Labs. Sonny brings a background in mathematics and AI, having previously worked at a Sequoia-backed AI startup. He comes from a family with deep roots in industrial manufacturing—cement, conservation, steel, and train production—and co-founded Ventrix Labs roughly one year and eight months ago while completing his master's degree at Imperial College London, where he met his co-founders through the Climate Entrepreneur Society.
The broader context reveals why this pricing strategy works: traditional industrial gas plants take two to seven years to build and cost hundreds of millions to over a billion dollars, making them economically inaccessible to most breweries and food producers. In the full conversation on The Pitch, Sonny also details how Ventrix built its first TRL6 prototype in just three and a half months and secured a £1 million UK government grant, underpinning the technical viability behind the financial model.
Downstream applications span food and beverage for carbonation and preservation, e-fuels production by combining CO2 and hydrogen to create methane, and construction materials—each offering distinct revenue and scale opportunities.
Traditional large plants are bespoke for every installation with learning rates around 3%, so costs have stagnated. Ventrix's modular, standardised units unlock manufacturing scale and faster deployment cycles, directly addressing cost barriers that have locked in legacy industrial infrastructure.
Ventrix builds modular industrial gas plants starting with CO2, stackable from single units to thousands together, enabling breweries and food producers to capture and control their own CO2 supply instead of depending on centralised billion-dollar gas plants.