DAC Companies Pivot on High Costs, Funding Cuts
Companies that invested in direct air capture (DAC) are now exploring alternative value propositions due to high costs and funding cuts.
DAC developers are adopting hybrid business models that combine carbon removal with other outputs, such as fuels, power, and water, to remain viable.
The shift follows declining government funding in the US and increased selectivity from investors, amid technical challenges and policy uncertainty.
DAC has long promised to pull CO2 directly from the ambient air, independent of industrial smokestacks or geography.
However, this ambition comes at a steep cost, as DAC systems must separate CO2 from the atmosphere, where the concentration is just 0.04%, making it far more energy-intensive and expensive.
Author's summary: DAC companies adapt to high costs and funding cuts.