Climeworks Launches New Carbon Removal Portfolio Service
Zurich-based Direct Air Capture (DAC) company provider Climeworks announced today the launch of Climeworks Solutions, a new service aimed at providing companies with high-quality carbon removal portfolios, spanning a broad range of carbon removal technologies and solutions.
Founded in 2009 by Christoph Gebald and Jan Wurzbacher, Climeworks has focused to date on building its position as a leading DAC provider. In 2022, the company raised nearly $650 million in an equity funding round aimed at scaling its DAC capacity. The company has since started construction of “Mammoth,” a new 36,000 tonne-capacity DAC facility, which it recently stated was near completion, and it is also participating in a series of large-scale DAC projects chosen receive grants of up to $1.2 billion by the U.S. Department of Energy.
According to the landmark 2022 Intergovernmental Panel on Climate Change (IPCC) climate change mitigation study, scenarios that limit warming to 1.5°C include carbon dioxide removal methods scaling to billions of tons of removal annually over the coming decades. The report also noted, however, that while there are multiple existing solutions to capture and store CO2, most are early stage and currently limited in scale.
Climeworks said that its decision to move beyond DAC-based removals comes in response to growing customer demand and a need to scale the carbon removal industry “on all fronts” to help address climate change.
Co-founder and co-CEO Christoph Gebald said:
“At Climeworks, we have 15 years of experience in permanent carbon removal via direct air capture. We have profound insights stemming from real-life operational experience and extensive R&D in technology. Thus, we know what determines best-in-class. This is why we are uniquely positioned to meet the growing demand for carbon removal in the market. A market that, according to analysts, has a trillion-dollar potential in 2050. So far, the market has been dominated by early adopters. Now, we see a next wave of companies entering as buyers and we can serve them according to their individual needs.”
According to the company, the new service will provide tailored solution packages assembled, sourced and managed by Climeworks, to suit companies’ strategic priorities, timing, quality, and budget. In addition to DAC, portfolios can include carbon removal solutions such as afforestation and reforestation, biochar, bioenergy with carbon capture and storage, as well as enhanced weathering. Climeworks will also provide assurance that the solutions have undergone in-depth due diligence, and are third-party verified.
Adrian Siegrist, Vice President of Climeworks Solutions, said:
“We meet customers where they are today. Some are highly advanced in their strategy but have limited resources to scan the market for high-quality solutions. Others recognize the need to shift away from avoidance offsets, but are at the beginning of the journey, with limited budgets. We can cater to all those needs and meet their ability to pay.”
Alongside the launch of the new service, Climeworks announced Swiss luxury watchmaker Breitling as the first customer of Climeworks Solutions, with the companies unveiling a 12-year agreement, with a portfolio including Climeworks’ DAC technology, in addition to enhanced weathering.
Aurelia Figueroa, Global Director of Sustainability at Breitling said:
“By building a high-quality and robust removal portfolio for our hard-to-abate emissions, Climeworks is helping us realize our vision for social and environmental impact. Their expertise in the carbon removal industry, project due diligence, and identification of high-quality solutions complement our own efforts to pioneer meaningful climate action.”