Climeworks Secures $162 Million to Supercharge Its Carbon Removal Ambitions

Image Credit: Climeworks

The climate crisis isn’t just looming, it’s already here. Even if we manage to slash emissions drastically, the world still needs to remove billions of tons of carbon dioxide from the atmosphere to have any chance of meeting global climate targets. That’s where carbon removal comes in. What was once a niche idea is now recognised by scientists and policymakers as essential. But there’s a catch: the industry is still in its early stages. It’s expensive. It’s limited. And the technology isn’t quite there yet. That’s the challenge Climeworks, a Swiss company specialising in direct air capture (DAC), is trying to solve.

Just recently, Climeworks raised $162 million in equity funding. That brings its total funding to over $1 billion, the highest ever for a company focused solely on carbon removal. BigPoint Holding and Partners Group led the latest round, with the funds earmarked for expanding operations and accelerating the development of next-generation DAC technology.

The Climeworks story began in 2009, when co-founders Christoph Gebald and Jan Wurzbacher had a bold vision: to take carbon removal from the lab and make it a scalable, climate-ready solution. Their mission has stayed the same: to permanently remove CO₂ using DAC technology powered by renewable energy, then store that CO₂ underground, where it will remain locked away for thousands of years.

Their long-term goal? Capture 1 billion tons of CO₂ by 2050. It’s ambitious, but it mirrors what the IPCC says we need to do if we’re serious about keeping global warming to 1.5 degrees Celsius.

One of Climeworks’ most significant breakthroughs is its Generation 3 DAC. This new system pulls CO₂ directly from the air using renewable energy. It doubles the amount of CO₂ each unit can capture, cuts energy use in half, and improves filter life — all while slashing costs by 50% compared to earlier versions. Their facility in Iceland, Mammoth, is currently the largest of its kind and can remove 36,000 tons of CO₂ a year.

But it’s not just the tech that makes Climeworks stand out. It’s their focus on permanent storage. The carbon they capture doesn’t get turned into fuel or packaging. It gets mineralised and stored underground, offering a truly durable and measurable climate solution.

To meet demand, Climeworks also offers blended carbon removal portfolios that combine its engineered removals with nature-based methods and third-party solutions. As buyers become more discerning, they’re looking for offsets that are not only effective but also verifiable, something Climeworks is betting big on.

They’re not alone in this space. Competitors like Twelve, Carbominer, Skytree, Ucaneo, Heirloom, Svante, Soletair Power, and Carbyon are all exploring different angles. Some are turning captured CO₂ into fuels or materials. Climeworks, however, is laser-focused on permanent and trustworthy removal, a point they view as a key market advantage.

So what comes next? With $162 million in fresh capital, Climeworks is pushing hard to scale. The rollout of Generation 3 is top priority, but they’re also expanding into new markets. Sites in the United States, Canada, Saudi Arabia, Norway, and the UK are on the radar, especially as policy and funding environments shift in favour of carbon removal.

They aim to reduce costs to between $250 and $350 per ton by 2030. That’s still a steep price, but far more approachable than it was initially. With many of the credits from their Mammoth plant already pre-sold, Climeworks knows it must deliver, and quickly.

The leadership team sees what’s coming. As more companies and countries commit to net zero, demand for high-quality carbon removals is expected to explode. Climeworks wants to be ready, not just as a participant in this new trillion-dollar industry, but as one of its pioneers.