Climeworks Raises US$1bn to Scale Carbon Removal Energy Tech
Climeworks has passed a major funding milestone with US$1bn now raised to accelerate the commercial deployment of its energy-intensive carbon removal technology.
Backing global companies like SAP, TikTok, Morgan Stanley and British Airways, the company is bringing high-efficiency carbon removal to the forefront of energy innovation.
The Swiss startup, founded in 2009 by Jan Wurzbacher and Christoph Gebald, is best known for developing Direct Air Capture (DAC) — a process that filters carbon dioxide (CO₂) directly from ambient air.
While the approach requires substantial energy input, it offers the potential to permanently remove carbon from the atmosphere when paired with long-term storage.
Christoph Gebald, Co-CEO and Co-Founder of Climeworks, sees this moment as pivotal: “Direct Air Capture has gone from experiment to essential – and we’re focused on scaling it by driving down costs and pushing innovation. Our hybrid model builds long-term demand while generating cash flow today, helping us grow a market that investors now see as inevitable. Crossing the US$1bn equity mark isn’t just a milestone – it shows that carbon removal is real, needed and here to stay.”
Turning energy into negative emissions
What makes Climeworks stand out in the sustainable energy space is its capacity to use energy not to generate power, but to remove the carbon that conventional energy systems have already emitted.
This flips the conventional narrative of energy tech from supply to clean-up — an inversion that is attracting climate-conscious firms.
Climeworks' DAC systems use modular collectors powered by renewable energy to trap CO₂ molecules. These are then safely stored underground in rock formations, a method known as mineralisation.
But powering these systems is no small feat: each tonne of carbon captured can require hundreds of kilowatt-hours of energy.
To make the technology viable at scale, Climeworks has invested in building increasingly energy-efficient plants.
In 2021, the company launched Orca in Iceland — the world’s first large-scale DAC and storage facility.
Then came Mammoth in 2024, also in Iceland, which is ten times larger than its predecessor.
Climeworks is now developing Cypress, its first commercial DAC plant in the US, designed to deliver capacity near its major markets and further optimise energy logistics.
The company also works with nature-based carbon removal, including reforestation and biochar, but it’s DAC that sets the pace for its industrial ambitions.
Businesses align emissions targets with energy impact
SAP, one of the world’s largest software companies, is using Climeworks to support decarbonisation where direct reductions aren’t yet technically possible.
Sophia Mendelsohn, Chief Sustainability & Commercial Officer at SAP, explains the business logic: “Investing in quality carbon removals addresses emissions we can't eliminate directly. Our Climeworks partnership secures high-integrity capacity at preferred rates while protecting against price volatility. This investment also strengthens SAP economically - we can now develop new products that meet evolving customer, partner, and regulatory expectations.”
TikTok has committed to removing more than 4,600 tonnes of CO₂ through Climeworks, with a portfolio approach that includes DAC, biochar and reforestation.
Ian Gill, Global Head of Sustainability at TikTok, says: “We carefully evaluated multiple providers to build a high-quality carbon removal portfolio. Climeworks provided a solution that meets our highest standards and aligns perfectly with our sustainability strategy as we work toward carbon neutrality by 2030.”
Climeworks’ model isn’t just about generating offsets — it’s about matching those removals with credible, energy-aware engineering.
The company uses a quality framework built on three pillars: trust, impact and risk.
These pillars entail independent certification, durability of removal, co-benefits to communities and risk assessment from carbon leakage or reversal.
Making carbon removal part of energy strategy
As countries and companies ramp up climate targets, energy systems are being pushed to include carbon removal in their long-term infrastructure. For Climeworks, this is no longer optional — it’s part of the future power mix.
Its current roster of customers includes airlines, banks and software giants — all industries under scrutiny for indirect and Scope 3 emissions.
What unites them is the need for verifiable, permanent carbon removals that stand up to regulatory and market expectations.
With demand for carbon removal projected to rise to the gigatonne scale by mid-century, and new plants like Cypress on the horizon, Climeworks is positioning itself as an energy player — just one that takes CO₂ out of the system rather than putting it in.
