Climeworks
Climeworks AG is a Swiss company founded in 2009 by engineers Christoph Gebald and Jan Wurzbacher, specializing in direct air capture (DAC) technology that removes carbon dioxide directly from ambient air using modular collectors equipped with chemical filters powered primarily by renewable energy.[1][2] The firm has pioneered commercial-scale DAC plants, including Orca in Iceland, which became operational in 2021 and captures up to 4,000 tons of CO₂ annually for permanent underground storage, and Mammoth, activated in 2024 with a designed capacity of 36,000 tons per year, marking the world's largest such facility to date.[3][4] Climeworks' process achieves over 90% net CO₂ removal efficiency according to independent life-cycle assessments, positioning DAC as a verifiable method for high-quality carbon dioxide removal independent of emission sources.[5] Despite these advancements, the technology remains energy-intensive and costly, with capture prices historically exceeding $600 per ton, prompting criticisms of scalability and economic viability amid broader debates on its role relative to emissions reduction efforts.[5] In 2025, Climeworks announced workforce reductions of over 10% amid funding challenges and operational shortfalls, including failure to offset its own plant emissions, highlighting persistent hurdles in achieving gigaton-scale deployment.[6][7]Founding and Early History
Origins in Research (2009–2015)
Climeworks originated from research conducted by co-founders Christoph Gebald and Jan Wurzbacher at ETH Zurich, where they developed direct air capture (DAC) technology as mechanical engineering students and doctoral candidates.[1] The duo, who met during their undergraduate studies, drew inspiration from observations of glacier retreat in the Alps, prompting them to explore engineered CO2 removal from the atmosphere as a means to reverse anthropogenic climate impacts.[8] Their work focused on solid sorbent-based DAC, utilizing amine-functionalized materials to selectively bind CO2 at ambient concentrations (approximately 400 ppm), followed by regeneration via temperature and vacuum swings to release pure CO2 streams.[9] Wurzbacher's doctoral thesis, completed at ETH Zurich, detailed the temperature-vacuum swing (TVS) process for DAC, optimizing sorbent performance with low-grade heat (around 100°C) and moderate vacuum for energy-efficient regeneration, achieving capture efficiencies suitable for scalable deployment.[10] Gebald contributed complementary engineering on system integration, including airflow management and modular filter designs to handle dilute CO2 sources without point-source dependencies.[11] This research built on first-principles thermodynamics and adsorption kinetics, prioritizing materials that minimized energy penalties compared to liquid solvent alternatives, with lab prototypes demonstrating CO2 purities exceeding 95%.[9] Climeworks was established as an ETH Zurich spin-off at the end of 2009 to commercialize this technology, initially operating from university labs with seed funding from Swiss foundations totaling around $300,000 to prototype small-scale units.[12] [11] Between 2010 and 2015, the company refined the process through iterative testing, focusing on sorbent durability under cyclic operations and integration with waste heat sources for cost reduction, culminating in plans for industrial-scale pilots by late 2015.[13] These efforts validated the feasibility of DAC for negative emissions, though early prototypes captured only grams to kilograms of CO2 per day, highlighting scalability challenges addressed in subsequent phases.[9]Initial Commercialization Efforts (2016–2020)
In May 2017, Climeworks commissioned its first industrial-scale direct air capture (DAC) facility, known as the Capricorn plant, in Hinwil, Switzerland.[11][14] The plant featured 18 modular collector units capable of removing up to 900 metric tons of CO₂ annually from ambient air, powered by waste heat and renewable electricity from an adjacent industrial site.[15] Captured CO₂ was compressed and sold directly to a nearby greenhouse operator for enhanced vegetable growth, marking the initial commercial utilization pathway rather than permanent storage.[16] This deployment demonstrated the feasibility of revenue-generating DAC at a modest scale, though operational costs exceeded $600 per ton of CO₂ removed, reflecting early technology immaturity.[17] To fund expansion beyond prototypes, Climeworks secured CHF 30.5 million (approximately USD 31 million) in August 2018 from investors including Swisscom Ventures and others, earmarked for advancing DAC commercialization and modular plant deployment.[18] This capital supported iterative improvements to the first-generation technology used in Hinwil, which continued operating through the period while informing next-phase designs. In June 2020, the company raised an additional CHF 75 million (about USD 78 million) in a venture round, further bolstering efforts to transition toward larger-scale removals and cost reductions.[19] As part of the European Union's Horizon 2020-funded STORE&GO project (2016–2020), Climeworks installed a second-generation DAC unit, dubbed DAC-3, at a demonstration site in Troia, Italy, in late 2018.[20] This facility supplied captured CO₂ for synthetic natural gas production via power-to-gas methanation, integrating DAC with renewable energy storage and contributing to the project's €28 million budget, of which €18 million came from EU grants.[21] The initiative tested DAC's role in industrial CO₂ supply chains, capturing smaller volumes but validating system-level commercialization amid fluctuating renewable inputs. These efforts collectively shifted Climeworks from research prototypes to revenue-positive operations, albeit at limited scale and high expense, laying groundwork for subsequent gigatonne ambitions.[22]Technology and Engineering
Direct Air Capture Process
Climeworks employs a solid sorbent-based direct air capture (DAC) process that selectively adsorbs carbon dioxide (CO₂) from ambient air using modular filter units. Large fans draw in atmospheric air, which passes through stacked filter trays containing proprietary solid sorbent materials designed to bind CO₂ molecules at concentrations around 420 parts per million, even in the presence of other gases like nitrogen and oxygen.[23][24] The sorbents, often amine-functionalized solids, operate under ambient conditions without requiring high pressures or extreme temperatures for adsorption.[25] Once the filters reach saturation, typically after several hours of operation, the adsorption phase halts, and the units enter regeneration. This involves a temperature-vacuum swing adsorption cycle: the filters are sealed, subjected to a vacuum to lower the desorption temperature, and heated to approximately 80–120°C using low-grade heat sources, such as waste heat or renewable electricity-driven systems, to release the captured CO₂ as a concentrated stream exceeding 95% purity.[26][27] The process is dry, minimizing water usage compared to liquid solvent alternatives, and the modular collector design—each unit roughly the size of a shipping container—allows for scalable deployment and independent regeneration cycles to maintain continuous operation.[28][29] The desorbed CO₂ is then compressed and dehydrated for downstream applications, such as geological storage or utilization in products like synthetic fuels. Climeworks' approach emphasizes chemical selectivity and energy efficiency in regeneration, though empirical data from operational plants indicate energy demands of 1.5–2.5 gigajoules per ton of CO₂ captured, primarily for air movement and heating.[30] Independent assessments confirm the technology's ability to achieve net-negative emissions when powered by renewables and paired with permanent storage, but scalability hinges on sorbent durability and cost reductions in materials and operations.[31]CO2 Storage Integration
Climeworks integrates CO2 storage primarily through partnerships enabling permanent mineralization, focusing on direct air capture followed by underground injection into basaltic formations. The captured CO2 is compressed at the capture site and transported to injection wells, where it is dissolved in water and pumped into subsurface rock layers, reacting chemically to form stable carbonate minerals such as calcite and magnesite. This process achieves mineralization rates exceeding 95% within less than two years, ensuring long-term sequestration without reliance on long-term monitoring or containment infrastructure.[32][33] The primary partner for this integration is Carbfix, an Icelandic company specializing in accelerated mineralization, with collaboration dating back to 2017. Under agreements with Carbfix and ON Power, Climeworks' facilities in Iceland utilize geothermal-sourced water and energy for the storage phase, injecting CO2 into the Hellisheidi geothermal field's basalt reservoirs. This full-chain direct air capture and storage (DAC+S) approach has been formalized in a methodology verified by DNV in 2022, confirming the permanence and quantifiability of removals for carbon credit issuance.[34][35][36] For the Orca plant, operational since September 2021 near Reykjavik, Iceland, the 4,000 metric tons of annual CO2 capture capacity is fully integrated with Carbfix's mineralization, representing the first large-scale implementation of DAC+S. The Mammoth plant, commissioned in May 2024 with an initial capacity of 36,000 metric tons per year (scalable to 72,000), employs the same storage pipeline, with construction updates confirming injection infrastructure readiness by mid-2023. These integrations prioritize geologically stable sites in Iceland due to abundant basalt and low seismic risk, though Climeworks has explored adaptable mineralization for other regions without disclosed operational alternatives as of 2025.[37][38][39]Energy Use, Efficiency, and Material Inputs
Climeworks' direct air capture (DAC) process consumes energy primarily for ventilating air through sorbent filters and regenerating those sorbents via low-temperature heating around 100°C to release captured CO₂. Electricity powers fans and auxiliary systems, while thermal energy—sourced from renewables like geothermal—drives desorption, accounting for the majority of inputs in early deployments. For the Orca plant, launched in 2021, Climeworks reports approximately 500 kWh of electricity and 1,500 kWh of heat per ton of CO₂ captured, totaling around 2,000 kWh equivalent. Independent assessments align closely, estimating fan energy alone at 370 kWh per ton, with overall requirements scaling to 2,000–2,650 kWh per ton when including thermal components derived from plant-scale data (e.g., 8 million kWh thermal and 2.6 million kWh electricity for 4,000 tons annually). Efficiency has improved with generational advancements. Climeworks' Generation 3 (Gen3) technology, deployed in facilities like Mammoth starting in 2024, halves energy use per ton of CO₂ to roughly 1,000 kWh equivalent through optimized sorbent cycling and reduced regeneration needs, while doubling capture capacity per module. This leverages faster adsorption/desorption kinetics, enabling more cycles without performance degradation, and integrates renewable low-grade heat to minimize net emissions. Real-world testing confirms these gains, though full-scale verification remains ongoing as Mammoth ramps to its 36,000-ton nameplate capacity using geothermal power from ON Power. Critics note that even optimized DAC demands vast renewable expansion, with electricity costs alone potentially exceeding $100 per ton at $0.10/kWh rates if not subsidized. Material inputs center on proprietary solid sorbents embedded in modular filters, which selectively adsorb CO₂ from ambient air. Early generations used packed-bed filters with amine-based or similar chemical sorbents, requiring periodic replacement due to degradation. Gen3 shifts to structured sorbents—engineered monolithic materials replacing loose granules—for tripled lifetimes (extending operational cycles) and lower material intensity per ton captured. These reduce waste and costs by minimizing sorbent mass needs, though exact compositions remain undisclosed; patents describe CO₂-selective solids compatible with temperature-vacuum swing adsorption. Ancillary inputs include steel and composites for collector units, but sorbents dominate lifecycle impacts, with sustainability claims tied to extended durability halving replacement frequency. No public data quantifies total sorbent mass per ton, but efficiency gains imply reduced inputs at scale.Major Projects and Deployments
Pilot and Prototype Facilities
Climeworks developed its initial direct air capture (DAC) prototypes in laboratories at ETH Zurich following the company's founding in 2009 as a spin-off from research on renewable energy carriers.[1] These early prototypes operated at milligram scales, demonstrating proof-of-concept capture of CO₂ from ambient air using solid sorbent materials and low-temperature regeneration processes.[1] By 2012, a kilogram-scale demonstration prototype had been constructed, advancing modular design elements that informed subsequent engineering iterations.[1] A small-scale plant with ton-level capacity followed in 2014, installed in London, United Kingdom, to test operational deployment of collector modules powered by waste heat.[1] The company's first industrial-scale pilot facility, known as Capricorn, became operational in mid-2016 in Hinwil, Switzerland, adjacent to a municipal waste incinerator that supplied low-grade heat for the process.[11] This plant featured 18 collector containers with a nominal capacity of 900 tons of CO₂ per year, which was piped directly to nearby greenhouses operated by partner Gebrüder Meier Primanatura AG to accelerate vegetable growth by up to 20%.[11] Supported by the Swiss Federal Office of Energy as a three-year demonstration project, Capricorn validated commercialization of DAC technology, including continuous CO₂ delivery and integration with industrial energy sources like the Zweckverband Kehrichtverwertung Zürcher Oberland KEZO facility, though operations concluded after achieving design goals.[11][15] In parallel, Climeworks commissioned Arctic Fox in 2017 at the Hellisheiði geothermal power plant site in Iceland, marking the initial pilot for integrating DAC with permanent geological storage via mineralization.[40] This small-scale facility, developed in collaboration with Carbfix, captured up to 50 tons of CO₂ annually and injected it into basaltic rock formations for conversion to stable carbonates, proving the feasibility of end-to-end carbon dioxide removal without utilization markets.[33] Arctic Fox served as a precursor to larger Icelandic deployments, leveraging renewable geothermal energy and demonstrating field reliability in a remote environment prior to scaling.[40]Orca Plant Operations (2021 Onward)
The Orca plant, situated at the Hellisheidi geothermal site in Iceland, began operations on September 8, 2021, as the world's first large-scale direct air capture and storage (DAC+S) facility.[37] Developed by Climeworks in collaboration with Carbfix, the plant comprises eight modular collector containers arranged around a central processing unit, with each container designed to capture up to 500 tons of CO₂ annually, yielding a nominal total capacity of 4,000 tons per year.[37] The facility draws heat and electricity from the adjacent Hellisheidi geothermal power plant, enabling renewable-powered capture of atmospheric CO₂ using Climeworks' solid sorbent-based direct air capture technology.[37] Captured CO₂ is dehydrated, liquefied on-site, and piped to Carbfix for permanent underground mineralization, where it is dissolved in water and injected into basaltic rock formations, mineralizing over 95% within two years.[41][33] In operational practice, Orca's effective nameplate capacity has ranged from 3,000 to 3,100 tons of CO₂ per year, with maximum verifiable removal limited to 2,400–2,500 tons annually due to factors including deployment efficiencies, ambient conditions, and system optimizations.[4] Construction costs for the plant totaled between $10 million and $15 million.[42] Since inception, operations have demonstrated progressive improvements in performance metrics, serving as a proof-of-concept for scaling DAC technology while providing real-world data on modular deployment and integration with geological storage.[6] In August 2024, Orca achieved the first AAA rating for a DAC facility from BeZero Carbon, affirming high standards in CO₂ removal permanence, additionality, and co-benefits.[43] The plant's outputs have supported early carbon removal markets, with stored CO₂ verifiable through monitoring and contributing to buyer commitments under frameworks emphasizing durable sequestration.[44] By 2025, amid Climeworks' broader financial adjustments including workforce reductions, Orca continued reliable operation, underscoring its role in validating the DAC+S chain for future expansions like the adjacent Mammoth plant.[6]Mammoth Plant and Scaling Attempts (2024–2025)
The Mammoth plant, Climeworks' second commercial direct air capture (DAC) facility in Iceland's Hellisheiði region, broke ground on June 28, 2022, as a modular scale-up from the Orca plant with a designed nameplate capacity of up to 36,000 metric tons of CO₂ removal per year.[45][3] The facility employs 72 collector containers—initially deploying 12 upon startup—to draw CO₂ from ambient air using chemical sorbents, followed by mineralization storage via Carbfix partnership, powered by geothermal energy from ON Power.[46][3] Operations commenced on May 8, 2024, marking a targeted tenfold capacity increase over Orca to inform iterative scaling toward megaton-level removals by 2030.[47][3] However, full deployment was projected for completion throughout 2024, with actual 2024 removals totaling only 105 metric tons—far below projections—due to engineering integration delays and operational ramp-up hurdles in modular assembly and process optimization.[48][49] By May 2025, Climeworks acknowledged delays in Mammoth's ramp-up, attributing slowdowns to first-of-a-kind scaling complexities in supply chain, high capital expenditures, and energy-intensive module commissioning, amid broader DAC sector headwinds including policy shifts under the U.S. Trump administration reducing climate incentives.[50][51] These issues prompted a 22% workforce reduction (106 employees) announced May 21, 2025, to streamline costs while prioritizing core DAC advancements, even as the firm secured $162 million in private funding in July 2025 for technology refinement and further U.S.-based projects like Project Cypress.[52][53] Despite underperformance, Mammoth's iterative design continues to yield data on cost reductions and reliability for subsequent gigaton-scale ambitions, though critics highlight persistent economic barriers in achieving viable removal rates without subsidies.[54][49]Business Model and Economics
Funding Rounds and Investor Base
Climeworks, founded in 2009, has secured over $1 billion in total funding across equity rounds and grants to develop and scale its direct air capture technology.[55][56] The company's funding trajectory reflects growing investor interest in carbon removal, with equity investments accelerating post-2020 amid heightened focus on net-zero goals. Early rounds emphasized seed and Series A capital from European venture firms, while later stages drew larger institutional players betting on commercialization.[57]| Round Date | Amount | Type | Lead Investors/Key Participants |
|---|---|---|---|
| August 2020 | CHF 100 million (USD 110 million) | Equity | Undisclosed private investors; largest DAC investment at the time |
| April 2022 | CHF 600 million (USD 650 million) | Equity | Existing investors including Swiss and international funds |
| July 2025 | USD 162 million | Equity | BigPoint Holding, Partners Group; participation from existing backers |