The world faces an urgent climate crisis: even with significant emissions cuts, billions of tons of CO₂ must be removed from the atmosphere to achieve global climate goals. The carbon removal industry, once a niche, is now recognised as vital by scientists and policymakers. Yet it remains in early development, with high costs, limited capacity, and technical challenges hindering progress. Climeworks, a Swiss direct air capture (DAC) leader, is actively addressing these issues.
The company recently secured a $162 million equity funding round, raising its total funding to over $1 billion — the highest for a pure-play carbon removal firm. Led by BigPoint Holding and Partners Group, this new funding will support Climeworks in expanding operations and advancing next-generation DAC technology.
The story behind Climeworks
Founded in 2009 by Christoph Gebald and Jan Wurzbacher, Climeworks set out to transform carbon removal from a scientific experiment into a scalable climate solution. The company’s mission is to permanently remove CO₂ from the atmosphere using DAC technology powered by renewable energy, which captures and stores CO₂ underground for thousands of years.
Climeworks’ vision is to make carbon removal a mainstream, affordable tool for fighting climate change. The company aims to capture 1 billion tons of CO₂ by 2050, a goal that aligns with IPCC scenarios for limiting global warming to 1.5°C.
Generation 3 DAC and a hybrid model
Climeworks’ core innovation is its Generation 3 DAC technology, which captures CO₂ directly from ambient air using renewable energy. This latest generation doubles the capture capacity per module, halves energy consumption, and extends the lifespan of its filter materials, cutting costs by 50% compared to previous designs. The company operates the world’s largest DAC plants, including Mammoth in Iceland, which can remove 36,000 tons of CO₂ annually.
What sets Climeworks apart is not just its technological lead, but its commitment to permanent storage. Captured CO₂ is mineralised and stored underground for thousands of years, offering verifiable, durable removal.
Climeworks also offers blended carbon removal portfolios, combining its engineered solutions with nature-based and third-party removals to meet growing demand for high-quality carbon credits.
The competitive landscape includes companies like Twelve, Carbominer, Skytree, Ucaneo, Heirloom, Svante, Soletair Power, and Carbyon. While some focus on converting captured CO₂ into fuels or materials, Climeworks’ focus remains on permanent, verifiable removal — a key differentiator as buyers seek trustworthy offsets.
What’s next for Climeworks?
With $162 million in new funding, Climeworks plans to accelerate its Generation 3 technology rollout, expand its portfolio of carbon removal solutions, and scale up internationally. The company is exploring new sites in the U.S., Canada, Saudi Arabia, Norway, and the UK, partly in response to shifting policy and funding landscapes.
Climeworks aims to reduce carbon removal costs to $250–$350 per ton by 2030, making it accessible to a broader range of buyers. Having already pre-sold many of Mammoth’s future credits, the company is pressured to deliver at scale and with reliability.
Leadership believes that demand for high-quality removals will surge as more corporations and governments commit to net zero. Climeworks intends to be at the forefront of this trillion-dollar market.
