Climeworks Secures $162 Million Funding for Expansion of Carbon Capture Technology
Zurich-based carbon removal solutions provider, Climeworks, has announced a significant milestone in its mission to combat climate change. The company has secured $162 million in a new equity funding round, marking the largest carbon removal investment of the year and pushing its total equity funding beyond $1 billion.
This new funding will be used to further develop Climeworks' Direct Air Capture (DAC) technology, a groundbreaking solution that extracts CO2 directly from the atmosphere for use as a raw material or permanent removal when combined with storage. The funds will also contribute to the expansion of Climeworks' carbon removal portfolio, which already includes a diverse range of methods such as afforestation and reforestation, biochar, bioenergy with carbon capture and storage, enhanced rock weathering, and DAC technologies.
Climeworks has made significant advancements in reducing the costs of DAC carbon removals. The introduction of Generation 3 technology has doubled CO2 capture capacity per module, halved energy consumption, and increased material lifetime, cutting costs by 50%. These advancements are crucial in making DAC technology scalable and profitable, a strategic focus for Climeworks.
The hybrid model of Climeworks aims to build long-term demand while generating cash flow today. This model indicates a current financial benefit from carbon removal efforts, a testament to the growing investment in carbon removal. The growing investment in Climeworks, as indicated by the $1 billion in funding, suggests increasing recognition and support for Direct Air Capture technology.
Christoph Gebald, co-CEO and co-founder of Climeworks, stated that the focus is on scaling Direct Air Capture by driving down costs and pushing innovation. He further emphasized that the growing investment in carbon removal shows that it is real, needed, and here to stay.
Currently, Climeworks operates with its third-generation DAC technology, building on the success of its flagship plants, Orca and Mammoth, which capture around 36,000 tons of CO₂ annually. Recent technological advances include doubling energy efficiency, increasing CO₂ capture throughput per unit of hardware, and extending filter lifespan, all critical to reducing operational costs and carbon footprint.
The new funding will accelerate innovation in DAC technology to further lower costs. Expansion plans include scaling up DAC deployment to meet surging demand, with a market projected to grow to $80 billion by 2030 and $1 trillion by 2050. Climeworks aims to continue growing its diversified carbon removal portfolio, offering tailored solutions that blend nature-based and engineered methods to serve near- and long-term removal needs.
In summary, Climeworks is leveraging its latest funding round to scale and optimize its DAC technology, drive down costs, expand capacity, and solidify its market leadership in carbon removal—positioning itself as a key player in the growing carbon capture industry.
- This significant investment in carbon removal technology by Climeworks signifies a growing interest in environmental science, with science and technology playing crucial roles in the development and optimization of Direct Air Capture (DAC) technology.
- The hybrid business model of Climeworks, which generates cash flow today while building long-term demand, represents a unique interplay of finance and investing, demonstrating the potential for lucrative returns in the climate-change mitigation sector.
- The increasing recognition and support for Direct Air Capture (DAC) technology, as indicated by the vast $1 billion in funding secured by Climeworks, spotlights the importance of this environmental-science advancement in addressing climate-change challenges and fostering a sustainable future.
