Climework DAC Initiatives for 2025: Key Projects, Strategies and Partnerships
Climeworks and the Commercialization of Direct Air Capture
From Niche to Mainstream: Tracking the Adoption of Direct Air Capture
Between 2021 and 2024, Climeworks established Direct Air Capture (DAC) as a credible, high-quality carbon removal solution, primarily attracting climate-forward pioneers in the tech and finance sectors. Landmark long-term agreements with Swiss Re (2021) and Microsoft (2022) validated the market for permanent, verifiable removals. These early adopters were focused on securing a future supply of a scarce asset. The applications were singular in purpose: purchasing tons of carbon dioxide removal (CDR) to meet corporate climate goals. This period was characterized by foundational, high-value contracts that proved a business model could be built around DAC.
The landscape shifted dramatically in 2025. The adoption of DAC has diversified into a much broader commercial ecosystem, signaling a significant inflection point. Climeworks expanded from its core base into entirely new industries, securing its first partnerships in shipping with Mitsui O.S.K. Lines (MOL) and NYK Line. This move into hard-to-abate sectors represents a new opportunity, targeting industries with few other viable decarbonization pathways. Furthermore, partnerships with consumer-facing brands like TikTok and the LEGO Group demonstrate DAC’s growing role in corporate sustainability storytelling. The collaboration with SAP to co-innovate and integrate carbon removal into business software marks a critical evolution from a simple transactional sale of carbon credits to a deeply embedded enterprise solution. This variety indicates that DAC is transitioning from a niche tool for climate leaders to a strategic necessity for a widening array of global industries.
Capitalizing the Path to Gigaton Scale
Climeworks has successfully attracted significant capital to fund its ambitious scaling plans, moving from foundational funding to growth capital aimed at technological optimization. The initial large-scale funding in 2022 provided the necessary resources to transition from the pilot-scale Orca plant to the much larger Mammoth facility. The most recent funding round in 2025, which pushed the company past the $1 billion total funding milestone, is strategically earmarked for deploying the more efficient Generation 3 technology and driving down costs. This progression in funding strategy underscores investor confidence in both the company’s execution capabilities and its technological roadmap.
Table: Climeworks Investment Timeline
| Investors | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| BigPoint Holding, Partners Group, and others | July 2, 2025 | Raised $162 million in a Series E round, bringing total funding over $1 billion. Capital is allocated to scale up Generation 3 technology and expand CO₂ removal services. | Climeworks raises USD 162M to scale up technology |
| Undisclosed Investors | September 2023 | Raised CHF 100 million (USD 110 million) to further advance scaling efforts. | [PDF] Investment into Climeworks boosted to CHF 100 Million (USD 110M) |
| Partners Group and GIC | April 2022 | Raised CHF 600 million (USD 650 million) in an equity round to scale DAC capacity and build out large-scale facilities like Mammoth. | Climeworks Raises $650 Million to Scale Direct Air Capture Capacity |
The Partnership Ecosystem Powering DAC
Climeworks’ strategy hinges on building a diverse and robust partnership ecosystem. The period from 2021 to 2024 was defined by landmark, long-duration offtake agreements that established market confidence. The 10-year, $10 million deal with Swiss Re was the world’s first of its kind, and the subsequent 15-year, 80,000-ton agreement with Boston Consulting Group (BCG) demonstrated a scaling of ambition. These collaborations provided crucial revenue certainty. In 2024, the focus expanded to include key technology and supply chain partners like Svante and logistics providers like CapturePoint Solutions, laying the groundwork for future expansion and efficiency gains.
In 2025, the pace and diversity of partnerships accelerated significantly, indicating a new phase of market penetration. Climeworks broke into the maritime industry with MOL and NYK Line and signed multi-million euro deals with major corporations like SAP and the LEGO Group. The nature of these partnerships also evolved. The SAP collaboration, for instance, goes beyond carbon credits to include co-innovation on carbon removal management solutions. The Carbon Centric agreement represents the world’s first international transfer of durable carbon removal credits, opening up new cross-border market mechanisms. This web of strategic alliances across technology, finance, logistics, and diverse customer segments is critical for scaling DAC from a novel technology to a global climate solution.
Table: Climeworks Strategic Partnership Timeline
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Boston Consulting Group (BCG) | July 10, 2025 | Partnership to explore and promote the business case for CDR, helping companies integrate carbon removal into climate action plans. | BCG’s Customer Story – Climeworks |
| LEGO Group and KIRKBI | July 2, 2025 | A 9-year, $2.4 million agreement to permanently remove 37,000 tons of CO₂, integrating DAC into LEGO’s sustainability strategy. | Climeworks signs 9-year agreement with the LEGO Group and KIRKBI |
| Carbon Centric | June 19, 2025 | A groundbreaking agreement for the first international transfer of durable, verifiable carbon removal credits to support climate goals for the City of Zurich and IWB. | Climeworks and Carbon Centric in groundbreaking carbon removal … |
| SAP | June 17, 2025 | A strategic partnership to integrate carbon removal solutions into SAP’s strategy, co-innovate, and secure 37,000 tons of removal credits. | Inside SAP & Climeworks’ New Partnership for Decarbonisation |
| Svante | May 13, 2025 | Collaboration and supply agreement to advance commercial-scale DAC using Svante’s structured adsorbents for Climeworks’ Gen 3 technology. | Real-world testing proves Gen3 efficiency leap with Svante’s structure |
| NYK Line | May 7, 2025 | Agreement with the global shipping company to remove CO₂ until 2028, expanding Climeworks’ presence in the maritime sector. | NYK signs agreement for diverse carbon removal solutions |
| Mitsui O.S.K. Lines (MOL) | April 24, 2025 | First partnership in the shipping industry and with a Japanese company, committing to remove 13,400 tons of CO₂ by 2030. | Climeworks gains first partner in the shipping inustry: MOL |
| TikTok and Two Drifters Distillery | February 19, 2025 | Multi-year partnership to remove over 6,000 tons of CO₂ by 2030 using a portfolio approach including DAC, biochar, and reforestation. | TikTok and Two Drifters partner with Climeworks |
| KAPSARC | December 3, 2024 | Collaboration to explore the feasibility of DAC technologies in Saudi Arabia. | KAPSARC and Climeworks explore feasibility of DAC in Saudi Arabia |
| Morgan Stanley | October 24, 2024 | Partnership for the permanent removal of 40,000 tons of CO₂, representing a major financial sector agreement. | Morgan Stanley partners with Climeworks to remove CO₂ |
| CapturePoint Solutions | October 23, 2024 | Agreement for CO₂ transport and storage for Project Cypress in Louisiana, securing a key part of the value chain in the US. | Climeworks collaborates with CapturePoint Solutions for CO₂ storage |
| British Airways | September 23, 2024 | Collaboration to permanently remove CO₂ emissions on behalf of the airline. | Climeworks collaborates with British Airways |
| Boston Consulting Group (BCG) | December 14, 2023 | A 15-year agreement for the removal of 80,000 tons of CO₂, providing long-term planning security and fostering innovation. | BCG and Climeworks sign 15-year partnership agreement |
| Deep Sky | November 21, 2023 | Collaboration to explore developing large-scale DAC and storage projects in Canada, targeting up to one million tons of CO₂ removal. | Climeworks and Deep Sky to explore large-scale DAC+S in Canada |
| Microsoft | July 2022 | A 10-year offtake agreement for Climeworks to permanently remove 10,000 tons of CO₂. | Microsoft Signs 10-year Carbon Removal Deal with Climeworks |
| Swiss Re | August 2021 | The world’s first long-term purchase agreement for DAC, a 10-year deal valued at $10 million. | Climeworks and Swiss Re sign first and largest 10-year DAC+S … |
The Shifting Geographic Focus of DAC Deployment
Between 2021 and 2024, Climeworks’ operational and commercial center of gravity was firmly in Europe, specifically Iceland. The launch of Orca in 2021 and its successor Mammoth in 2024 established Iceland as the global hub for DAC combined with permanent geological storage, thanks to its abundant geothermal energy and the unique mineralization capabilities of its partner, Carbfix. Partnerships during this era were also heavily concentrated in Europe, with cornerstone clients like Swiss Re, BCG, and Lufthansa Group.
From 2025 onwards, a strategic geographic diversification is evident. While Iceland remains a critical operational base, Climeworks is actively expanding into North America and exploring opportunities in the Middle East. The planned development of Project Cypress in Louisiana, supported by a partnership with CapturePoint Solutions for CO₂ storage, marks a major push into the United States. This move is likely driven by favorable policy incentives and the region’s established infrastructure for carbon management. Simultaneously, collaborations with Deep Sky to explore megaton-scale projects in Canada and a feasibility study with KAPSARC in Saudi Arabia indicate a global ambition. This expansion from a single European stronghold to a multi-regional presence mitigates geographic risk and positions Climeworks to capture growth in key emerging markets for carbon removal.
From Commercial Proof to Technological Leap
The maturity of Climeworks’ technology has undergone a clear and deliberate evolution. The 2021–2024 period was about proving commercial scale and operational reliability. The launch of Orca (4,000 tons/year) in 2021 was the first major validation point, transitioning DAC from pilot projects to a continuously operating commercial plant. The commissioning of Mammoth in 2024, a facility ten times larger than Orca, demonstrated the technology’s scalability and solidified Climeworks’ position as the market leader. During this phase, the technology was commercially deployed and scaling, but still faced challenges related to high energy consumption and cost.
The period from 2025 to today is defined by a significant technological leap aimed squarely at addressing those challenges. The introduction of Generation 3 DAC technology, developed in collaboration with Svante, represents a step-change rather than an incremental improvement. With claims of doubling CO₂ capture capacity while halving energy use, this technology has moved from R&D to large-scale testing and is now ready for deployment. The $162 million funding round in July 2025 was explicitly raised to scale this new, more efficient technology. This pivot from scaling a proven but energy-intensive technology to deploying a fundamentally more efficient one signals a new level of maturity, focused on achieving the cost reductions necessary for gigaton-scale deployment by 2050.
Table: Climeworks SWOT Analysis (2021–2023 vs. 2024–2025)
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | First-mover advantage with the operational Orca plant (2021). Secured world’s first long-term DAC purchase agreement with Swiss Re. Raised significant foundational capital ($650M in 2022). | Proven operational scaling with Mammoth plant (10x Orca). Validated Generation 3 tech with 50% energy reduction. Surpassed $1B in total funding. Diversified customer base into new sectors like shipping (MOL, NYK) and consumer goods (LEGO). | Shifted from proving the concept at a small commercial scale (Orca) to demonstrating industrial-scale operations (Mammoth) and achieving a fundamental technology breakthrough (Gen 3). |
| Weaknesses | High energy consumption and cost of DAC technology. Geographic concentration in Iceland. Limited operational capacity (4,000 tons/yr at Orca). | Cost remains a barrier, but Gen 3 technology directly addresses energy use. Execution risk in new geographies (Project Cypress, USA). Dependence on corporate offtake agreements. | The core weakness of high energy use is being directly addressed by the Gen 3 tech. The weakness of geographic concentration is being mitigated by expansion into North America and exploration in the Middle East. |
| Opportunities | Growing corporate demand for high-quality, permanent carbon removal, demonstrated by deals with Microsoft and BCG. | Expansion into new, hard-to-abate sectors (maritime). Co-innovation partnerships (e.g., SAP) to create integrated solutions. Favorable policy environments in new regions like the US. | The opportunity evolved from selling a niche product (tons of CDR) to providing integrated decarbonization solutions and entering entirely new markets and geographic regions. |
| Threats | Competition from other carbon removal pathways. Scalability concerns of the core technology. Dependence on a small number of large corporate buyers. | Potential for economic downturns to impact corporate climate budgets. Navigating new regulatory environments in the US and Canada. Supply chain challenges for scaling Gen 3 structured adsorbents (mitigated by Svante partnership). | The threat of technological scalability has been lessened by the Gen 3 breakthrough. The threat of customer concentration is being reduced by rapid diversification across industries in 2025. |
The Road Ahead: From Scaling to Market Integration
The data from 2025 signals that Climeworks is entering an accelerated phase of industrialization and market integration. The focus is shifting from simply proving the technology works to making it economically viable and embedding it within the global economy. The market should watch three key signals in the year ahead. First, the execution of Project Cypress in Louisiana will be a critical test of Climeworks’ ability to deploy its technology in a new regulatory and logistical environment. Success here would validate its global expansion strategy. Second, the real-world performance of the Generation 3 technology in its first commercial deployments will determine the pace of cost reduction and future scalability. Finally, the conversion of strategic partnerships, like the one with SAP, into tangible, co-developed products will indicate whether DAC can successfully transition from a climate commodity to an integrated enterprise solution. The momentum is clearly shifting from securing offtake agreements to building the physical and digital infrastructure for a gigaton-scale carbon removal industry.
Frequently Asked Questions
How has Climeworks’ customer base evolved since its early days?
Initially, from 2021 to 2024, Climeworks’ customers were primarily climate-pioneering companies in the tech and finance sectors, such as Swiss Re and Microsoft, who were focused on purchasing carbon removal to meet corporate climate goals. Since 2025, the customer base has diversified significantly into new industries, including hard-to-abate sectors like shipping (Mitsui O.S.K. Lines, NYK Line) and consumer-facing brands like the LEGO Group and TikTok.
What is Climeworks’ Generation 3 technology and why is it important?
Generation 3 is Climeworks’ newest Direct Air Capture technology, developed in collaboration with Svante. Its significance lies in its efficiency leap; it is designed to double CO₂ capture capacity while halving energy consumption compared to previous versions. This technological advancement is critical for driving down the cost of carbon removal, which is necessary to make DAC a viable solution at a gigaton scale.
How is Climeworks’ geographic focus changing?
Between 2021 and 2024, Climeworks’ operations were centered almost exclusively in Europe, specifically with its Orca and Mammoth plants in Iceland. Since 2025, the company has begun a strategic global expansion, most notably into North America with the development of Project Cypress in Louisiana and the exploration of megaton-scale projects in Canada. It is also exploring feasibility in the Middle East, signaling a move from a single European stronghold to a multi-regional operational strategy.
What is the significance of the partnership with SAP?
The partnership with SAP, announced in 2025, marks a strategic evolution from simple transactional sales of carbon credits to a more integrated enterprise solution. Beyond purchasing removal credits, the collaboration focuses on co-innovation to embed carbon removal management solutions directly into SAP’s business software, aiming to make DAC a strategic and operational tool for a wide array of global industries.
What was the purpose of the most recent funding round in July 2025?
The July 2025 funding round raised $162 million, pushing Climeworks’ total funding past the $1 billion milestone. According to the article, this capital is strategically allocated to scale up the deployment of the company’s new, more efficient Generation 3 technology and to drive down the overall cost of its CO₂ removal services.
Want strategic insights like this on your target company or market?
Build clean tech reports in minutes — not days — with real data on partnerships, commercial activities, sustainability strategies, and emerging trends.
Experience In-Depth, Real-Time Analysis
For just $200/year (not $200/hour). Stop wasting time with alternatives:
- Consultancies take weeks and cost thousands.
- ChatGPT and Perplexity lack depth.
- Googling wastes hours with scattered results.
Enki delivers fresh, evidence-based insights covering your market, your customers, and your competitors.
Trusted by Fortune 500 teams. Market-specific intelligence.
Explore Your Market →One-week free trial. Cancel anytime.
