Climeworks secures additional funding following employee reductions.
In a significant move for the carbon capture industry, Swiss-based firm Climeworks has secured a substantial investment of $162 million in 2025. Led by BigPoint Holding and Partners Group, the funding round also saw support from existing investors, making it the largest carbon removal investment globally that year [1][2][3].
With this fresh infusion of capital, Climeworks plans to accelerate innovation in its core business, Direct Air Capture (DAC) technology, aiming to reduce costs and enhance efficiency [1][3]. The company also intends to expand its CO₂ removal platform, currently holding over 6 million tons of secured supply, further solidifying its position as a leading provider of carbon removal solutions [1][3].
Beyond DAC, Climeworks will diversify its carbon removal portfolio by investing in nature-based solutions such as afforestation, biochar, and bioenergy with carbon capture [5]. This strategic move is expected to contribute significantly to the company's long-term growth.
Looking ahead, Climeworks plans to scale its operations by expanding facilities and technology. This includes operating its largest DAC facility in Iceland, known as Mammoth, and potentially expanding into new locations [4]. The company aims to maintain its market leadership in the carbon removal sector by continuing to innovate and reduce costs associated with DAC technology [5].
Climeworks is also likely to form strategic partnerships with existing and new investors, including entities like Microsoft, BCG, and Morgan Stanley, to further its mission and expand its reach [4]. These partnerships are expected to play a crucial role in the company's future growth and success.
Despite facing setbacks and layoffs recently, the fresh funds secured by Climeworks are intended to help the company move towards profitability [1][2]. Since its founding in 2009, Climeworks has raised over $1 billion in total, positioning it as a prominent player in the relatively small global carbon capture industry [1][2].
The carbon dioxide removal process known as Direct Air Capture (DAC) continues to attract investors, with Climeworks operating two DAC facilities in Iceland [4]. The majority of the funding for Climeworks came from Swiss financial investor Partners Group and BigPoint Holding, controlled by Swiss entrepreneur Martin Haefner [1].
As the world grapples with the challenges of climate change, investments in companies like Climeworks are crucial in the global effort to reduce carbon emissions and combat climate change. With its innovative technology and strategic expansion plans, Climeworks is well-positioned to play a significant role in this global endeavour.
Climeworks, having secured a significant $162 million investment in 2025, plans to leverage this capital to advance its Direct Air Capture (DAC) technology, aiming to reduce costs and enhance efficiency, while also expanding its CO₂ removal platform. By investing in nature-based solutions like afforestation, biochar, and bioenergy with carbon capture, the company aspires to diversify its carbon removal portfolio for long-term growth.
