Key Learnings from Episode: Commercialising Sustainable Innovation with Andrew Holt, CEO of Kenoteq

In this episode of Beyond the Raise, Andrew Holt shares the journey behind Kenoteq, a company pioneering sustainable bricks made from recycled construction waste. Drawing on decades of experience in engineering and manufacturing, Andrew discusses the realities of commercialising climate technology in one of the world's oldest industries. From earning customer trust to scaling manufacturing, the conversation explores why innovation alone isn't enough to disrupt legacy markets.

Trust Is the Biggest Barrier to Innovation

One of Andrew's strongest messages is that the greatest challenge isn't proving the technology works—it's convincing customers to trust something new.

The business began as a spin-out from Heriot-Watt University, where Professor Gabriela Medero worked with a local recycling company to explore new ways of using construction waste. Together, they identified an opportunity to transform recycled materials into a high-performance, low-carbon brick, laying the foundations for what would become Kenoteq.

While certification proves the product performs to the required standard, customers are comparing it with building materials that have been trusted for centuries. In construction, where safety and longevity are paramount, trust has to be earned over time.

Key Takeaways

• Commercial adoption depends on trust as much as innovation.

• Proven performance matters more than technical claims.

• Customers need confidence before changing established practices.

• Building credibility takes time.

Circular Economy Creates Multiple Benefits

Kenoteq's approach goes beyond reducing carbon emissions.

By using construction and demolition waste, recycled gypsum and recovered pigments, the company creates a brick that diverts waste from landfill while reducing reliance on virgin raw materials. The result is a product that supports the circular economy while significantly lowering its environmental impact.

For Andrew, sustainability is about solving multiple environmental challenges through a single innovation.

Key Takeaways

• Circular economy principles create value beyond carbon reduction.

• Waste materials can become valuable resources.

• Sustainable manufacturing addresses multiple environmental challenges.

• Innovation should improve both environmental and commercial outcomes.

Commercialisation Is Harder Than Innovation

Developing a product is only the first step.

Andrew explains that commercialising climate technology introduces an entirely different set of challenges, particularly in legacy industries where established products have built trust over generations.

Technical certification may prove a product works, but commercial success depends on convincing architects, contractors and developers to choose something unfamiliar.

Key Takeaways

• Technical validation does not guarantee market adoption.

• Commercialisation requires different skills from product development.

• Legacy industries naturally resist change.

• Customer confidence must be built over time.

Manufacturing Changes Everything

A recurring theme throughout the discussion is the transition from research to manufacturing.

The people who invent a product are rarely the same people who build factories, manage production and optimise supply chains. As Kenoteq evolved, Andrew believes the company needed to develop entirely new operational capabilities alongside its technical expertise.

Key Takeaways

• Manufacturing requires different capabilities from research and development.

• Operational excellence becomes increasingly important during scale.

• Leadership teams must evolve as businesses mature.

• Scaling requires specialist expertise.

Price Still Drives Buying Decisions

While sustainability is becoming increasingly important, Andrew is realistic about customer behaviour.

Many projects begin with ambitious sustainability targets but ultimately become driven by cost during procurement. Premium sustainable products therefore face the challenge of demonstrating value while competing against well-established alternatives.

Andrew believes economies of scale will eventually help close that pricing gap, but early-stage manufacturing businesses inevitably face higher production costs.

Key Takeaways

• Cost remains a major purchasing factor.

• Sustainable products must become commercially competitive.

• Economies of scale improve affordability over time.

• Customers often balance sustainability against budget constraints.

Growth Requires Capital and Patience

Manufacturing businesses are inherently capital-intensive.

Unlike software companies, scaling production requires investment in equipment, facilities and operational infrastructure before significant revenues can be generated. Andrew believes founders should secure more funding than they think they'll need and expect commercial progress to take longer than planned.

Having sufficient financial runway creates flexibility when markets change or unexpected challenges emerge.

Key Takeaways

• Manufacturing requires significant upfront investment.

• Founders should plan for longer commercial timelines.

• Financial resilience creates flexibility.

• Growth rarely happens as quickly as expected.

Licensing Can Accelerate Global Growth

Rather than building factories around the world, Andrew sees licensing Kenoteq's technology as a more efficient route to international expansion.

By partnering with manufacturers that already have production capacity, the business can expand more quickly, reduce capital requirements and reach global markets without carrying the cost of building facilities in every region.

Key Takeaways

• Licensing can unlock faster international growth.

• Partnerships reduce capital expenditure.

• Existing manufacturing capacity accelerates scale.

• Technology businesses don't always need to manufacture directly.

The Right People Matter More Than Ever

Throughout the conversation, Andrew repeatedly returns to the importance of people.

As businesses move from invention to commercialisation, the capabilities required change dramatically. Hiring people who can grow alongside the business, adapt to changing priorities and remain resilient during difficult periods becomes essential.

For Andrew, mindset is every bit as important as technical expertise.

Key Takeaways

• Hiring should reflect where the business is heading.

• Adaptability supports long-term growth.

• Strong teams outperform individual expertise.

• Resilience is a key leadership trait.

Innovation Must Solve Real Problems

Andrew cautions against developing technology simply because it is technically impressive.

Successful innovation addresses genuine customer challenges and creates measurable value. Without a clear market need, even the most sophisticated technology will struggle to succeed commercially.

Customer feedback should continually shape future product development.

Key Takeaways

• Innovation should solve real customer problems.

• Market demand should shape product development.

• Customer feedback improves commercial success.

• Great technology still needs a compelling business case.

Optimism Drives Long-Term Success

Despite slower-than-expected market adoption, changing economic conditions and uncertainty around policy, Andrew remains optimistic.

He believes the long-term direction of travel is clear. Demand for sustainable construction materials will continue to grow as industries look to reduce waste, improve resource efficiency and lower carbon emissions.

For founders, the challenge is having the resilience to stay the course while markets gradually evolve.

Key Takeaways

• Sustainable construction will continue to grow.

• Progress rarely follows a straight line.

• Resilience helps businesses navigate uncertainty.

• Long-term optimism supports better leadership.

Looking Ahead

Kenoteq continues to focus on expanding the adoption of its low-carbon brick technology while exploring licensing opportunities that could accelerate global growth. By combining circular economy principles with commercially viable manufacturing, the company aims to demonstrate that sustainable construction materials can compete alongside traditional products without compromising performance.

Final Thought

Andrew's story highlights an important lesson for every climate technology founder: creating an innovative product is only the beginning. Success comes from earning trust, building the right team, remaining commercially disciplined and having the patience to navigate industries that change slowly. In legacy sectors especially, meaningful disruption is built through persistence, not speed