UK DAC Initiatives for 2025: Key Projects, Strategies and Partnerships
Mission Zero Technologies: Engineering a Commercial Future for Direct Air Capture
From Niche Application to Diversified Commercialization
Between 2021 and 2024, the UK’s Direct Air Capture (DAC) landscape was characterized by foundational development and government-catalyzed R&D. The focus was on proving technological viability through demonstrators and pilot projects, such as the UK government’s £3 million award to Rolls-Royce for a demonstrator system and Mission Zero’s launch of the UK’s first DAC plant at the University of Sheffield. These early initiatives were crucial for technological validation but remained largely within the realm of research and future-looking, large-scale ambitions. The primary application was seen as broad carbon removal, with commercial models still in their infancy.
An inflection point occurred in 2025, marking a distinct shift from R&D to targeted commercial application. Mission Zero Technologies is at the forefront of this evolution. The opening of its second operational DAC plant in Norfolk in May 2025, in partnership with O.C.O Technology, is a landmark event. This collaboration moves DAC beyond simple capture into a value-added supply chain, using the captured CO2 to create carbon-negative building materials. This is complemented by the company’s government-backed project to scale sustainable aviation fuel (SAF) production. This diversification into tangible products like building materials and SAF, away from a singular focus on carbon credits, signals a maturing market. This variety demonstrates that DAC is becoming a platform technology with multiple revenue streams, creating new opportunities in hard-to-abate sectors but also introducing the threat of increased competition as other players like Airhive and NeoCarbon target similar value chains.
Investment Analysis
The investment trajectory for UK DAC, and specifically for Mission Zero, reveals a clear pattern of strategic de-risking and commercial validation. Initial government funding was broad, aimed at fostering an ecosystem, as seen in the £54 million investment across 15 carbon removal projects in 2022. This was followed by targeted R&D grants, such as the £3 million for the Rolls-Royce demonstrator and an early £240,000 contract for a Mission Zero-led consortium. By 2025, investment has become highly focused on commercial scaling. Mission Zero secured a total of £7.38 million from the UK government specifically to scale SAF production via DAC. This progression from broad innovation funding to application-specific scaling capital indicates growing confidence in the technology’s commercial readiness and Mission Zero’s ability to execute.
Table: DAC Investment Timeline
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Mission Zero Technologies / UK Government | 2025 | Received £6M in fresh funding, following an earlier £1.38M grant, for a project dedicated to scaling the production of sustainable aviation fuel (SAF) through its DAC technology. | … |
| Airhive / AP Ventures & Coca-Cola Europacific Partners | Mar 2024 | Airhive secured its first investment round to deliver one of the largest DAC pilots globally, aiming to accelerate deployment. | … |
| Amazon / 1PointFive | Sep 2023 | Amazon invested in 1PointFive and purchased carbon removal credits to support the world’s largest DAC deployment. | … |
| UK Government / 15 Carbon Removal Projects | Jul 2022 | Invested £54 million across 15 different projects to develop a range of carbon removal technologies, including DAC. | … |
| Rolls-Royce / UK Government | Jul 2022 | Awarded £3 million in government funding to build a demonstrator DAC system to showcase the technology’s potential. | … |
| Mission Zero-led consortium / UK Government | Pre-2025 | Awarded a £240,000 contract to develop DAC and greenhouse gas removal technologies. | … |
Partnership Ecosystem
The nature of partnerships in the DAC space has evolved from exploratory R&D collaborations to strategic, market-driven alliances. Initially, collaborations were foundational, like the Mission Zero-led consortium focused on early-stage technology development. The partnership with the University of Sheffield in December 2023 to launch the UK’s first DAC plant was a critical step, establishing a physical hub for R&D. By 2024 and 2025, the partnerships became explicitly commercial. Mission Zero’s collaborations with O.C.O Technology (for building materials) and Deep Sky (for scaling SAF and permanent removal) are prime examples. These alliances are no longer about just building the technology; they are about building a market for its output, signifying a crucial transition toward economic sustainability.
Table: DAC Partnership Timeline
| Partners | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Phlair GmbH and Carbon Removal AS | Jul 2025 | Partnered to develop Europe’s first large-scale DAC and geologic CO₂ storage facility, aiming to advance large-scale deployment. | … |
| Mission Zero Technologies, O.C.O Technology, DESNZ | May 2025 | Mission Zero opened its second DAC plant in Norfolk in partnership with O.C.O Technology and the UK government to scale deployment and create green jobs. | … |
| Mission Zero Technologies and O.C.O Technology | Mar 2024 | Partnered to develop carbon-negative building materials from captured CO2, establishing the UK’s second DAC plant. | … |
| Mission Zero Technologies and University of Sheffield | Dec 2023 | Launched the UK’s first DAC plant at the university, providing a sustainable carbon source for SAF production. | … |
| Deep Sky and Mission Zero Technologies | Sep 2023 | Partnered to expedite permanent carbon removal and the scaling of SAF production, supported by £6M in UK government funding. | … |
| Storegga and Carbon Engineering | Pre-2025 | Working together with the aim of building a large-scale DAC plant in the UK within five years. | … |
| Mission Zero-led consortium | Pre-2025 | A Mission Zero-led consortium was awarded a government contract to develop DAC and greenhouse gas removal technologies. | … |
From UK-Centric Hubs to Global Integration
Between 2021 and 2024, the UK was the unambiguous epicenter of the DAC activity profiled here. Key events, including the launch of the first DAC plant at the University of Sheffield and the government-funded Rolls-Royce demonstrator, were located within the UK. This concentration was driven by the UK’s Net Zero Strategy and proactive government funding, which created a fertile ground for innovation.
From late 2023 into 2025, while the UK remains a critical hub—as evidenced by Mission Zero’s new plant in Norfolk—the geographic scope has expanded significantly through international partnerships. Mission Zero’s collaboration with Canada-based Deep Sky (September 2023) to scale SAF and permanent removal is a primary example. Similarly, UK-based Origen partnered with the Energy & Environmental Research Center in North Dakota (October 2024) to accelerate its technology. This pattern suggests that while the UK excels at incubating DAC technology, scaling and commercialization necessitate access to international markets, capital, and specialized infrastructure. The emerging risk is that other regions may leapfrog the UK in scale; the Phlair and Carbon Removal AS partnership (July 2025) aims to build Europe’s first *large-scale* integrated DAC and storage facility, signaling intensifying international competition.
Accelerating from Demonstrators to Deployable Commercial Units
The maturation of Mission Zero’s DAC technology can be tracked through its progression from concept to commercial operation. In the 2021–2024 period, the focus was squarely on the pilot and demonstrator stage. The launch of the first plant at the University of Sheffield (December 2023) was a milestone in proving the technology could work in a real-world setting, specifically for the future application of SAF production. This phase was about establishing technical credibility and securing initial R&D funding, as seen with the £240,000 government contract.
The period from 2025 to today marks a clear transition to commercial deployment and scaling. The opening of the second plant in Norfolk with O.C.O Technology is not a pilot; it is an operational facility integrated into a commercial partner’s production process. One of the plants is already capturing 50 tonnes of CO2 annually. While this scale is modest compared to megaton-scale ambitions, it represents a commercially functioning unit. Furthermore, the £6 million government grant is explicitly for *scaling* SAF production, moving beyond the initial research phase. This shift validates the commercial viability of Mission Zero’s modular, application-focused DAC model, proving it can generate revenue now rather than waiting for the maturation of the large-scale carbon credit market.
Table: SWOT Analysis of Mission Zero’s DAC Commercialization
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strength | Strong UK government backing for R&D, exemplified by the £240,000 grant to a Mission Zero-led consortium for GGR technology development. | Demonstrated commercial viability with two operational plants and a clear go-to-market strategy, such as the Norfolk plant turning CO2 into limestone with O.C.O Technology. | The strategy evolved from relying on R&D grants to executing commercial partnerships with tangible products, validating the business model. |
| Weakness | Technology was largely confined to the pilot stage with unproven commercial models. For example, the first plant at the University of Sheffield was for R&D purposes. | Operational scale remains small. One plant’s 50 tonnes/year capture rate is a fraction of the megaton-scale facilities being engineered by competitors. | While commercial viability is proven, achieving cost-effective scale remains the primary challenge to address for market leadership. |
| Opportunity | Focused on securing foundational R&D funding and proving the technology. The partnership with the University of Sheffield was a key step in this process. | Diversifying into high-value, application-specific markets like SAF and carbon-negative building materials, supported by £7.38M in government funding for SAF scaling. | The company validated that creating products from CO2 is a faster path to revenue than relying solely on the still-developing carbon removal credit market. |
| Threat | The primary threat was internal technical risk and the challenge of moving from concept to a working pilot. | Growing competition from other DAC companies targeting similar applications (e.g., Airhive) and international projects aiming for larger scale (e.g., Phlair in Europe). | The competitive landscape has shifted from a race to build a working prototype to a race to secure commercial partners and achieve scale. |
Forward-Looking Insights: The Road to Market Integration
The most recent data from 2025 signals that Mission Zero Technologies is successfully executing a strategy centered on carbon utilization, not just capture. The dual focus on SAF and carbon-negative building materials demonstrates a savvy approach to creating value in the near term. For the year ahead, the most critical signal to watch will be the progress of the government-funded project to scale SAF production. Success here would solidify Mission Zero’s position as a key enabler for aviation decarbonization. We should expect the company to pursue further partnerships in sectors where a sustainable, non-fossil carbon source provides a clear competitive advantage. Modular, application-specific DAC is gaining significant traction, offering a more agile and less capital-intensive path to market than megaton-scale projects. Mission Zero has effectively transitioned from a technology developer to a commercial solutions provider. The challenge ahead lies in scaling these solutions to meet growing demand and stay ahead in an increasingly competitive global market.
Frequently Asked Questions
What is Mission Zero’s commercial strategy, and how has it changed?
Mission Zero’s strategy has shifted from R&D and technological validation to targeted commercialization through carbon utilization. Instead of focusing only on selling carbon credits, they are creating tangible products like carbon-negative building materials (with O.C.O Technology) and sustainable aviation fuel (SAF), creating a diversified, value-added supply chain for their captured CO2.
What evidence shows that Mission Zero has moved beyond the pilot stage?
The company has transitioned from a single R&D-focused plant at the University of Sheffield to opening a second, fully operational plant in Norfolk in May 2025. This second plant is a commercial partnership with O.C.O Technology, integrating directly into their production process. Furthermore, Mission Zero secured £7.38 million in government funding specifically for *scaling* SAF production, not just researching it.
What are the main challenges or threats Mission Zero currently faces?
According to the analysis, Mission Zero’s primary challenges have evolved from internal technical risk to external market pressures. The main threats now are the need to achieve cost-effective scale (as current plants are modest in size) and facing increased competition from other DAC players like Airhive and larger-scale international projects, such as the Phlair facility planned for Europe.
How have partnerships in the DAC space evolved for Mission Zero?
Partnerships have matured from foundational R&D collaborations, like the early consortium and the University of Sheffield project, to strategic, market-driven alliances. Recent partnerships with O.C.O Technology (for building materials) and Canada-based Deep Sky (for SAF and permanent removal) are focused on building a commercial market for the captured CO2, signifying a shift toward economic sustainability.
How does the investment trend reflect the maturity of Mission Zero’s technology?
The investment trajectory shows a clear pattern of de-risking and commercial validation. Funding has progressed from broad, early-stage government grants for R&D (like the initial £240,000 contract) to highly focused, application-specific scaling capital, exemplified by the £7.38 million in government funding dedicated to scaling SAF production. This indicates growing investor confidence in the technology’s commercial readiness.
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