The Direct Air Capture Industry: Removing CO₂ at Scale
Direct air capture (DAC) has evolved from a niche research concept into a rapidly scaling industry backed by billions in private and public investment. As of 2025, approximately 150 companies worldwide are developing or deploying DAC technology, with 27 operational plants across Europe, North America, Japan, and the Middle East.
Technology Approaches
DAC companies generally fall into three technology categories:
- Solid Sorbent Systems
- Used by Climeworks, CarbonCapture Inc., and others. Air passes over solid adsorbent materials that chemically bind CO₂, which is then released using heat. Climeworks' Generation 3 sorbents capture twice as much CO₂ with half the energy of earlier versions.
- Liquid Solvent Systems
- Pioneered by Carbon Engineering (now owned by Occidental via 1PointFive). Air contacts an aqueous potassium hydroxide solution that absorbs CO₂. The continuous-flow design enables larger capture volumes with less downtime.
- Mineral Looping & Electrochemical
- Heirloom accelerates limestone's natural CO₂ absorption. Noya and others use fully electric, electrochemical regeneration processes that eliminate the need for thermal energy sources.
Market Scale and Investment
Over $2.3 billion in private investment has flowed into DAC companies between 2021 and mid-2025, with additional government support including $1.8 billion from the U.S. Department of Energy for regional DAC hubs. The global DAC market, valued at approximately $98 million in 2024, is projected to reach $1.7 billion by 2030.
Landmark Projects
| Project | Company | Location | Capacity |
|---|---|---|---|
| Mammoth | Climeworks | Iceland | 36,000 tCO₂/yr |
| STRATOS | 1PointFive | Texas, USA | 500,000 tCO/yr |
| Project Cypress | Heirloom | Louisiana, USA | ~300,000 tCO₂/yr |
Carbon Credit Buyers
Major corporate buyers—including Microsoft, Stripe, Shopify, and JPMorgan—have signed advance purchase agreements for DAC-based carbon removal credits through initiatives like Frontier. These forward commitments are critical for de-risking capital-intensive DAC projects and driving costs toward the $100/tonne target that multiple startups are now pursuing.