Click the blue text to follow us..
According to the analysis report from the U.S. Department of Energy titled “Direct Air Capture Definition and Company Analysis Report,” there are currently about 142 registered companies worldwide researching direct air capture (DAC) technology. These companies are mainly distributed in North America (81), Europe (40), and Asia (17), with only 3 companies in China engaged in DAC technology research.
Since the end of last year, the global direct air capture (DAC) industry has accelerated its development, receiving substantial financing support and showing some new trends.
(1) In December 2024, the Canadian government provided $5 million to DAC technology company Carbon Engineering ULC for innovative DAC systems, strengthening Canada’s leadership in carbon management. Innovations will include exploring electrification and reducing facility footprint to improve efficiency. The company was acquired in 2023 by Occidental Petroleum for $1.1 billion (approximately 8 billion RMB) in cash.
(2) At the end of 2024, Heirloom announced the completion of a $150 million Series B financing, co-led by Future Positive and Lowercarbon Capital, with new participation from Japan Airlines, Mitsubishi Corporation, Mitsui & Co., MOL Switch LLC, Quantum Innovation Fund, and Siemens Financial Services. The funds will be used to enhance technological capabilities, reduce DAC costs, and support major projects like the U.S. Department of Energy’s “Project Cypress,” which aims to achieve an annual removal of 1 million tons of carbon dioxide in Louisiana.
Heirloom’s proprietary technology shortens the natural process of limestone absorbing carbon dioxide from years to three days, providing a low-cost pathway for scalable carbon removal. The company has signed long-term carbon removal agreements with Microsoft, Stripe, Meta, Shopify, JPMorgan Chase, and others.
(3) In early 2025, Google increased its carbon reduction commitments, signing over $10 billion in carbon credits, three times its commitment from 2023. Through independent procurement and the Frontier procurement alliance, it supports various methods for removing carbon dioxide from the atmosphere. Notably, in September 2024, Google signed a groundbreaking agreement with the Tennessee-based startup Holocene to purchase 100,000 tons of carbon removal services. This $10 million direct air capture (DAC) purchase agreement is scheduled for delivery in 2030, establishing a historic low price record of $100 per ton. Holocene launched its first pilot plant in May 2024, capable of capturing 10 tons of carbon dioxide annually, but has not yet achieved large-scale carbon removal.
(4) On January 10, 2025, leading renewable energy and decarbonization company Origis Energy announced the completion of $415 million in financing for its Swift Air Solar project in Ector County, Texas. This project has reached an agreement with Occidental Petroleum and its subsidiary 1PointFive to provide zero-emission solar energy for the world’s first large-scale DAC plant, STRATOS, currently under construction in the Permian Basin. Swift Air Solar is currently under construction and is expected to enter commercial production by mid-2025.
(5) In early February 2025, startup NeoCarbon, focused on DAC solutions, announced a successful collaboration with Carbonaide, a company with mineralization technology, to incorporate captured carbon dioxide into concrete production, producing the first batch of low-carbon concrete. NeoCarbon currently operates two self-developed DAC modules, with the latest module achieving an annual capture of 5 tons, and the company plans to increase its annual capture to 62.5 tons.
NeoCarbon’s DAC pilot project, “NeoDuo,” captures carbon dioxide from waste heat of cooling towers and then introduces the carbon dioxide into a curing chamber, combining it with concrete through a carbon mineralization process. Approximately 140 kilograms of carbon dioxide is required for each cubic meter of concrete. The first batch of low-carbon concrete was made using bio-based waste and 1 kilogram of DAC-captured carbon.
(6) At the end of February 2025, United Airlines’ UAV Sustainable Flight Fund invested in direct air capture (DAC) technology company Heirloom to support its decarbonization strategy. This investment includes the purchase of rights to up to 500,000 tons of carbon dioxide removal (CDR) for the production of sustainable aviation fuel or underground storage. This is United Airlines’ third investment in carbon capture technology but the first directed towards a commercial DAC technology company. Unlike point-source technologies that capture carbon directly from emission sources, DAC removes carbon dioxide from the atmosphere, having a broader environmental impact. Heirloom’s DAC technology utilizes the natural property of limestone to absorb carbon dioxide from the air, promising to be a low-cost, scalable carbon removal solution.
(7) At the end of February 2025, Frontier signed an agreement with Phlair, an innovator in electrochemical direct air capture (DAC) technology, agreeing that Frontier will invest $30.6 million in Phlair’s electrochemical DAC technology, planning to remove 47,000 tons of carbon dioxide between 2027 and 2030. This agreement will support Phlair in establishing its first commercial-scale DAC facility in Alberta, Canada.
Phlair captures and releases carbon dioxide directly using hydrogen-cycled electrolyzers without heating the capture material, reducing costs by about $15 per ton; it adjusts operations dynamically based on renewable energy supply and replaces battery storage with liquid storage; it is the first DAC company that does not rely on the grid, directly utilizing on-site solar power, breaking through the energy consumption and cost bottlenecks of traditional DAC.
Phlair’s modular technology can utilize existing industrial systems and supply chains to achieve standardized unit production. This modularity reduces upfront costs and provides developers with the flexibility to build DAC systems in phases.
(8) On March 10, 2025, climate startup Spiritus announced it has secured $30 million in Series A financing, led by Aramco Ventures, with follow-on investments from Khosla Ventures, Mitsubishi Heavy Industries America, and TDK Ventures. The funds will be used to accelerate the expansion of its direct air capture (DAC) technology, aiming to reduce carbon removal costs by 90% to $100 per ton.
(9) In March 2025, Saudi Aramco and Siemens Energy launched the country’s first direct air capture (DAC) testing facility, capable of removing 12 tons of carbon dioxide from the atmosphere annually. This initiative represents a key step in advancing carbon reduction technologies in Saudi Arabia. Saudi Aramco and Siemens Energy plan to use this pilot project as a platform to test a new generation of carbon capture materials adapted to Saudi Arabia’s unique climate conditions. If successful, it will significantly reduce DAC technology costs and accelerate its regional deployment. This DAC project is an important part of Saudi Aramco’s goal of achieving net-zero operational emissions (Scope 1 and Scope 2) by 2050, with carbon capture technology also included in its circular carbon economy strategy.
(10) In April 2025, Occidental Petroleum acquired the Tennessee-based direct air capture (DAC) startup Holocene, a strategic move aimed at integrating and scaling its carbon removal business. The financial terms of the acquisition have not been disclosed, but this marks Occidental Petroleum’s second significant investment in DAC technology following its $1.1 billion acquisition of Carbon Engineering in 2023. Occidental Petroleum is working to position itself as a market leader in the DAC field, with its subsidiary Oxy Low Carbon Ventures leading these acquisition activities. The company is currently developing “Project Stratos” in Ector County, Texas, which is expected to become the world’s largest direct air capture facility, capable of capturing 500,000 tons of carbon dioxide annually.
Holocene employs a novel liquid-based thermochemical DAC system that extracts carbon dioxide from the air using amino acids and organic compounds. The gas is then concentrated and heated at low temperatures to produce a pure carbon dioxide stream for transport and permanent geological storage. This method aims for high scalability and cost-effectiveness.
(11) In April 2025, Occidental Petroleum’s carbon capture division 1PointFive obtained a key permit from the U.S. Environmental Protection Agency (EPA) for its direct air capture (DAC) facility Stratos in Ector County, Texas, allowing for the permanent underground storage of captured carbon dioxide. This permit was issued under the Underground Injection Control (UIC) program of the Safe Drinking Water Act, paving the way for large-scale carbon storage. Stratos is a joint venture project between Occidental Petroleum’s 1PointFive and BlackRock, marking a significant bet on scalable, market-driven climate technology. The facility is planned to enter commercial operation this year, with an expected annual capture capacity of 500,000 tons of carbon dioxide once fully operational. With the EPA’s approval, 1PointFive will lead the large-scale deployment of DAC technology, which is an essential part of global net-zero strategies.
(12) The King Abdullah Petroleum Studies and Research Center (KAPSARC) signed a memorandum of understanding with global carbon removal leader Climeworks to explore the application of direct air capture (DAC) technology in Saudi Arabia. This agreement was signed during the fourth Saudi Green Initiative Forum, highlighting Saudi Arabia’s commitment to promoting sustainable energy solutions under the guidance of Energy Minister and KAPSARC Board Chairman Prince Abdulaziz bin Salman.
