The manager for strategic partnerships at Climeworks, Barbara Truyers, has stated that the cost of Direct Air Capture technology is set to drop as low as $250-$300/mtCO2e by the end of 2030 while hoping to reach multi-megaton capacity.
Climeworks has recently announced Carbon Dioxide Removal (CDR) purchases by well known companies like Zendesk, BCG, Svarovski, LTG, SwissRe, and several others. The company also received $650 million in investment capital to support its growth, and has announced the construction of Mammoth (the worlds largest DAC facility with a nominal capacity of 36,000t per year).
Barbare Truyers elaborated on costs and pricing: “While prices of Climeworks CDR credits have not been disclosed to the market, they vary by the amount purchased and duration of the contract. The price of Climeworks carbon credits is strongly impacted by the high cost of developing the plants, but these prices are expected to drop over the coming years, thanks to economy of scale and increased efficiency. An entire carbon removal industry will need to develop over a period of the next 10-20 years, creating capacities of at least 5 billion tons of carbon removal by 2050.”
She also added prices eventually coming down to “$100-$200/t.”
While many people speculate on where CDR prices are — or have to go — it’s noteworthy to hear a real number from Climeworks, as the company is currently the leader in DAC volume and technology. Such a benchmark allows other Carbon Removal companies to innovate on “new” technologies (like Enhanced Weathering, Biomass to Removals, etc.) trying to achieve more competitive prices and volumes.
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