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Heirloom, a direct air capture company, raised a $150 million Series B round as it develops projects and pushes to lower the cost of its tech. 

Why it matters: The financing comes at a time when Series B rounds have been particularly hard to close for climate firms.

Zoom in: Heirloom, founded in 2020, said the round was co-led by Future Positive and Chris Sacca's Lowercarbon Capital, which was a return investor. 

The deal included a handful of new industrial and corporate international investors including Japan Airlines, Mitsubishi Corporation (Americas), Mitsui, Siemens Financial Services and H&M Group.

It also included repeat investors Ahren Innovation Capital, Breakthrough Energy Ventures, Carbon Direct Capital and MCJ Collective.

The firm, based in Brisbane, Calif., said it also plans to access infrastructure capital for projects. 

Catch up quick: Direct air capture (DAC) companies suck carbon dioxide directly from the air, often using a solid sorbent or liquid solvent. Heirloom uses limestone to soak up CO2.

The company has an operating 1,000-ton per year DAC project in Tracy, Calif., and two projects under development in Louisiana.

Companies buy the carbon removal credits created by DAC projects. Heirloom has sold credits to customers like Microsoft and Frontier, a group of businesses that include Stripe, Google and Meta. 

By the numbers: When it comes to DAC, the cost per ton of carbon removed is the key factor for projects. 

Many DAC companies are trying to eventually get down to $100 per ton, but are currently more in the range of $600 to $1,000 per ton. 

Heirloom competitor Climeworks is trying to lower the cost of its tech to between $400 to $600 per ton by 2030.

Heirloom says its costs are falling as its tech scales, and it expects its next Louisiana facility to be 90% cheaper per ton than the Tracy facility. The company is currently selling carbon removal credits for between $600-$1000 per ton.

The big picture: Closing Series B rounds has been notoriously difficult for climate tech firms. 

This year companies have taken double the time it took three years ago to close a Series B.

Direct air capture startup Heirloom closes $150M

It's a tricky time to close Series B rounds in climate tech

A facility that can suck carbon dioxide from the air, built by Heirloom, in Tracy, Calif.

A facility that can suck carbon dioxide from the air, built by Heirloom, in Tracy, Calif. Photo courtesy of Heirloom.

Heirloom, a direct air capture company, raised a $150 million Series B round as it develops projects and pushes to lower the cost of its tech. Why it matters: The financing comes at a time when Series B rounds have been particularly hard to close for climate firms.

Direct air capture startup Heirloom closes $150M

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