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illuminem summarises for you the essential news of the day. Read the full piece on Axios or enjoy below:
🗞️ Driving the news: Climeworks, a carbon removal startup, has secured $162 million in financing, pushing its total funds raised to over $1 billion
• The funding round was led by Swiss investors BigPoint Holding and Partners Group
• This investment comes despite challenges facing direct air capture (DAC) companies, including high operational costs and fluctuating federal support, particularly in the U.S.
🔭 The context: Climeworks’ Mammoth direct air capture facility in Iceland, which began operations last summer, represents one of the most significant advancements in carbon removal technology
• However, DAC has faced skepticism due to its high costs compared to other carbon removal methods
• The company also pivoted last year to sell carbon removal credits from various technologies, not just DAC, in response to market demands
🌍 Why it matters for the planet: Climeworks’ success and continued investment in DAC technologies are crucial for scaling carbon removal efforts at a time when global emissions must be rapidly reduced
• While DAC remains costly, it is seen as a promising method to achieve net-zero emissions by capturing CO2 directly from the atmosphere
• The funding and governmental support for these technologies could be pivotal in addressing climate change
⏭️ What's next: The latest funding will help Climeworks expand its direct air capture facilities, including a new project in Louisiana, if federal support is secured
• The company may also deepen its involvement in selling carbon removal credits
• Despite the uncertainty in U.S. policy, ongoing investments from oil companies and government tax incentives suggest DAC could gain more traction in the coming years
💬 One quote: “This is the largest carbon removal investment of 2025 to date globally, and it shows that there’s strong investor confidence in the future of DAC,” said Christoph Gebald, co-CEO of Climeworks.
📈 One stat: Climeworks’ Mammoth DAC facility in Iceland is capable of capturing 36,000 tons of CO2 annually, contributing to the company's overall goals of scaling carbon removal technologies
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