Carbon removal startup raises $650 million
- Dan Primack, author of Axios Pro Rata
Illustration: Gabriella Turrisi/Axios
Climeworks, a Swiss carbon removal startup, raised $650 million co-led by Partners Group and GIC.
Why it matters: There's an emerging consensus that carbon emissions removal, in addition to reduction, is key to stemming climate change. But there's little agreement on if it can really be done at scale. This money, the most ever raised for a carbon removal startup, could help answer that question, as Climeworks currently operates the world's largest direct-air capture facility.
Other investors include Baillie Gifford, Carbon Removal Partners, Global Founders Capital, John Doerr, M&G, Swiss Re and BigPoint Holding.
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The bottom line: "Climeworks’ technology works by moving large quantities of air over a special chemical that is able to filter out CO₂, similar to a magnet attracting iron fillings. The new compound is then heated to high temperatures to release a pure stream of CO₂ which can be injected underground. The entire process is quite energy intensive and only makes sense for the planet if the main source of energy is carbon-free." — Akshat Rathi, Bloomberg