Climeworks
65Credible Contributor0 followersCarbon Removal·Zurich, Switzerland·Founded 2009·Private
climeworks.comSwiss pioneer of direct air capture (DAC), removing CO₂ from the atmosphere and storing it permanently underground, including the Orca and Mammoth plants in Iceland.
Greenwashing risk: mediumData confidence: medium
Why it's on ClimateTicker
Climeworks is a genuine climate mitigation company: its core business is physically removing CO₂ from the atmosphere via direct air capture (DAC) and mineralizing it permanently underground in Iceland — the most durable, verifiable form of carbon removal commercially available. The technology is real and independently certified, but it currently operates far below design capacity (Mammoth captured only ~105–876 tonnes in 2024 versus a 36,000-tonne annual nameplate), and at ~$1,000/tonne, it is wildly uneconomic at scale without subsidies. Investors should believe in the directional thesis while stress-testing the cost and throughput trajectory aggressively.
mitigationClimeworks sells carbon dioxide removal (CDR) credits — primarily direct air capture credits from its Iceland plants but increasingly bundled 'portfolio' solutions (via Climeworks Solutions) that combine DAC with third-party nature-based and engineered removals — to corporate buyers under multi-year offtake agreements; it is pre-profitability and heavily reliant on equity financing and government grants.
Commitments & Certifications
Controversy & Greenwashing Watch
lowIcelandic Subsidiary Negative Equity
Climeworks' Icelandic operating subsidiary carried negative equity of approximately $30 million at end-2023, fully dependent on Swiss parent financing, with an Orca plant write-down due to underperformance.source ↗
mediumCorporate Footprint Exceeds Removal Volume
Climeworks' own sustainability report acknowledges that its total corporate operational emissions (offices, travel, construction) currently outweigh the CO₂ removed by its plants — a pointed contradiction for a company selling itself as a carbon removal leader.source ↗
medium22% Workforce Reduction Amid US Policy Reversal
Climeworks laid off 106 employees (~22% of staff) in May 2025, citing US federal climate policy retreat and macroeconomic headwinds, raising questions about business model resilience and the credibility of gigaton-scale 2030–2050 projections marketed to investors.source ↗
highMammoth Plant Severe Underperformance vs. Design Capacity
Mammoth captured only approximately 105–876 tonnes of CO₂ in its first operational year (2024) against a 36,000-tonne annual nameplate, with credits pre-sold to corporate buyers based on projected future removals.source ↗
Funding
Equity · Led by Partners Group & GIC
USD 650.0M4/5/2022
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