Climate tech company Climeworks sets sights on expansion in Asia

REYKJAVIK – Climate tech company Climeworks, which currently operates two commercial direct air capture (DAC) plants in Iceland, with plans for another in the US, is now eyeing future opportunities in countries such as Malaysia, Indonesia and Japan.

“We are looking to expand globally, and Asia is part of that story,” said Ms Trishna Nagrani, who is Climeworks’ head of business development for the Asia-Pacific region.

DAC is a novel technology that removes carbon dioxide (CO2) directly from the atmosphere.

These systems use large fans to pull ambient air through filters that selectively capture CO2 before it is stored underground or converted into other products such as synthetic fuels.

But she said that future projects must meet three key criteria. 

First, renewable energy must be available at a “competitive price point”.

All of Climeworks’ facilities are powered using renewables, said Ms Nagrani.

Iceland uses geothermal energy, but in different parts of the world, different sources of renewable energy are needed to power these facilities. 

Energy is used in DAC plants to drive chemical reactions that absorb CO2 and to heat filter materials to release the captured CO2. 

Second, there must be permanent and safe storage solutions for the captured carbon, she said. 

Once CO2 is captured through Climeworks’ DAC technology, it must be safely stored and prevented from re-entering the atmosphere. 

Climeworks has already established partnerships with companies such as Carbfix in Iceland, which safely turns CO2 into stone for long-term storage.

After captured CO2 is dissolved in water, the resultant liquid is reacted with basaltic rock formations underground to form stable carbonate minerals, locking the CO2 away for millennia. 

Iceland’s abundant basalt, a result of its frequent volcanic activity, provides the perfect conditions for Carbfix’s technology.

In Asia, Climeworks is actively monitoring developments in CO2 storage infrastructure through third-party storage service providers, particularly in countries such as Malaysia, Indonesia and Japan. 

While these developments are not related to Climeworks, the company views them as promising, said Ms Judith Hebekeuser, senior press officer at the Swiss start-up.

In Asia, countries such as Malaysia, Indonesia and Japan have recently announced CO2 storage plans and have hence moved onto Climeworks’ radar, said Ms Hebekeuser. 

Finally, Ms Nagrani emphasised the need for strong government support and a favourable policy environment, including financial support, such as grants for the company to build a facility. 

DAC and storage facilities are extremely capital-intensive, she said.

The technology is highly expensive due to its large energy requirements and early stage of development, requiring research and development to improve efficiency and reduce costs. 

“One of the reasons why we’re building such a large set of facilities in the US is that the US Department of Energy started the direct air capture hub programme, and that not only catalysed us to build a facility in the US but also other global peers,” she added.

In March 2024, Climeworks, alongside project lead Battelle and project partner Heirloom, was awarded a contract from the US Department of Energy covering US$50 million (S$65.2 million) in funding to kick-start the direct air capture hub Project Cypress in Louisiana.