Serious Materials, the Sunnyvale, Calif. company that says it makes buildings with environmentally friendly materials, is looking to raise $40 million to $50 million to finance construction of its third manufacturing facility, according to VentureWire (subscription required).

The company plans to launch its drywall product in 2008, according to information available on the Serious Materials Web site. “We’ve developed a process that generates zero carbon dioxide in its manufacture,” [chief exec Kevin] Surace said. Data from Serious Materials shows that drywall production consumes 1% of almost all U.S. energy consumption — creating 51 million tons of greenhouse gas.

Serious Materials raised $5.5 million from Rustic Canyon Partners last year, had about $14 million in revenue last year, and says it will double that figure this year.