
Direct Air Capture Breakthroughs Accelerate
Pilot plants for direct air capture (DAC) technology are expanding globally, with over 130 facilities now in development. The International Energy Agency reports that operational DAC projects already capture 10,000 metric tons of CO2 annually, while megaton-scale projects like Stratos in Texas aim to remove 500,000 tons by next year. This rapid scaling comes as governments implement new incentives like the US Inflation Reduction Act's $180/ton tax credit for stored carbon.
Technology Innovations Cutting Costs
Two dominant approaches are emerging: Solid DAC (S-DAC) uses filter-based systems requiring 80-120°C temperatures, while Liquid DAC (L-DAC) employs chemical solutions needing 300-900°C heat. Companies like Climeworks and Carbon Engineering lead commercial deployment, with breakthrough innovations reducing projected costs from $600-1000/ton to $94-232/ton for large-scale plants. Passive systems like Carbon Collect's MechanicalTree™ use wind convection instead of energy-intensive fans.
Global Policy Push
The US leads with $3.5 billion DAC hub funding including Project Cypress in Louisiana. The EU's Carbon Removals Certification Framework establishes standards for tradable credits. Canada offers 60% tax credits for DAC sequestration, while Japan targets 6-12 million tons of annual capture by 2030. Private investments surged after Climeworks secured $650 million in 2022 - the largest DAC funding round to date.
Storage Solutions Emerging
Over 75% of captured CO2 currently supports enhanced oil recovery, but permanent storage is growing. Iceland's Carbfix project mineralizes CO2 in basalt within two years, while California's Heirloom integrates captured carbon into construction materials. Major buyers like Microsoft and Amazon have committed to 250,000 tons of removal credits through 2035.