Climeworks Raises $162M, Surpassing $1B in Funding, to Scale Carbon Capture

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Climeworks, a leader in Direct Air Capture (DAC) technology, has secured an additional $162 million in equity funding, bringing its total funding to over $1 billion. This significant investment, the largest in carbon removal for 2025 to date, underscores growing confidence in DAC as a crucial solution for combating climate change and positions Climeworks as a frontrunner in the burgeoning carbon removal market.

Climeworks Secures Major Investment to Accelerate Carbon Capture

Climeworks, a pioneer in direct air capture (DAC) technology, has announced a substantial $162 million equity funding round. This latest investment elevates the company’s total funding beyond the $1 billion mark, solidifying its position as a key player in the carbon removal industry. The funding round saw significant contributions from main investors BigPoint Holding and Partners Group, alongside continued support from existing investors.

The Rise of Direct Air Capture

Founded in 2009 by Christoph Gebald and Jan Wurzbacher, Climeworks has been at the forefront of DAC technology development. Their journey began with extracting CO₂ from the air in laboratory settings at ETH Zurich, leading to the operationalization of their first small-scale DAC plant in 2014. The company’s commitment to innovation is evident in its rapid expansion:

Orca (2021): The world’s first DAC and carbon storage plant.
Mammoth (2024): Located in Iceland, this plant is approximately ten times larger than Orca.
Cypress (Under Construction): Climeworks’ first commercial DAC and storage plant in the U.S., designed to expand capacity and reach North American markets.

Beyond engineered solutions, Climeworks also integrates nature-based approaches such as reforestation, biochar creation, and mangrove planting into its comprehensive carbon removal portfolio.

Driving Down Costs and Expanding Reach

The newly acquired capital will be instrumental in further developing Climeworks’ DAC technology, with a primary focus on reducing the cost of carbon removals. The company has already made significant strides in efficiency, including doubling energy efficiency, increasing throughput, and extending filter material lifespan. These advancements are crucial for making direct air capture a more economically viable and scalable solution.

Climeworks is also expanding its carbon removal portfolio to offer tailored, blended solutions. This strategy allows companies to initiate investments in carbon removal, diversify risk, and progressively enhance the quality of their removal efforts. The company currently boasts over 6 million tons of secured supply, catering to both immediate and long-term demand for carbon removal.

Industry Endorsements and Market Potential

Climeworks has attracted partnerships with major corporations, including TikTok, SAP, Morgan Stanley, and British Airways, all seeking to address their carbon footprints. Sophia Mendelsohn, Chief Sustainability & Commercial Officer at SAP, highlighted the strategic value of their partnership, stating, "Investing in quality carbon removals addresses emissions we can’t eliminate directly."

Ian Gill, Global Head of Sustainability at TikTok, also praised Climeworks’ solutions, noting, "Climeworks provided a solution that meets our highest standards and aligns perfectly with our sustainability strategy as we work toward carbon neutrality by 2030."

Analysts project the carbon removal market to reach $80 billion by 2030, potentially soaring to $1 trillion by 2050. This forecast, coupled with Climeworks’ recent funding success and technological advancements, positions the company as a pivotal player in the global effort to combat climate change.

Key Takeaways

Climeworks secured $162 million in new equity funding, pushing its total funding past $1 billion.
The investment is the largest carbon removal funding round globally in 2025 to date.
Funds will be used to further develop DAC technology, aiming to reduce removal costs and improve efficiency.
Climeworks is expanding its portfolio to offer diverse, hybrid carbon removal solutions.
Major corporations like TikTok and SAP are partnering with Climeworks for their sustainability initiatives.
The carbon removal market is projected for significant growth, reaching potentially $1 trillion by 2050.