As the world's top investment manager and financial market journalist, I bring you the latest on direct air capture technology, a promising solution to combat climate change. Direct air capture involves sucking massive amounts of carbon dioxide out of the atmosphere, helping to offset the damage caused by our reliance on fossil fuels.
Currently, the cost of capturing a metric ton of carbon is around $600 to $1,000, which many consider too expensive for commercial viability. However, startups are racing to drive down costs, aiming to capture carbon dioxide for $100 or less per metric ton.
Despite the challenges, investors and multinational corporations like Microsoft, Shopify, and Stripe are betting on the future success of direct air capture. Larger startups like Climeworks and Carbon Engineering are focusing on scaling up to reduce costs, while smaller startups like Phlair are exploring alternative approaches to make the process more efficient.
Phlair, for example, is using a unique method that leverages a hydrolyzer to capture carbon dioxide using the "pH swing" method. This innovative approach has attracted investment and support from organizations like Frontier, Alphabet, Meta, and others.
With a pilot project set to launch soon and larger plants in the works, Phlair is poised to make a significant impact in the fight against climate change. By selling carbon credits and securing funding from investors and grants, the company is paving the way for a more sustainable future.
As an expert in the field, I believe that direct air capture has the potential to revolutionize how we address climate change. By supporting companies like Phlair, we can not only make a positive impact on the environment but also create profitable investment opportunities for the future.