Cement-bonded wood fibre blocks produced by the firm have been available in the UK for over 15 years, although the technology was developed in 1947 in Austria.
The business, which operates from a factory in Crumlin, South Wales, turned over £1.7m last year, but slid to a £360,000 loss.
This year the business is understood to have forecast revenue could hit £2.8m revenue on the back of a strong order book put at around £6m by one source.
Since administrators from Leonard Curtis took control headcount has been cut from 15 to 4 staff.
Durisol Insulated Concrete Form (ICF) can save up to 30% compared to the cost of traditional brick and block masonry.
It was made from recycled timber and used low carbon concrete to up its environmental credentials.
But use of the green blocks, popular in the self-build sector, had failed to reach its potential with bigger housing developers.
A source told the Enquirer: “We were just starting to win over firms as producing low carbon homes comes into sharper focus.
“It’s a real shame the business was placed into administration just as demand looked to be rising.”
Firms interested in the business can email Leonard Curtis with bids due to be submitted before 2pm on 16 May.