Out of Thin Air: The Cost of Scaling Direct Air Capture

AI generated summary

Direct air capture (DAC) removal credits are currently too expensive for most companies, limiting accessibility to only a few large organizations with significant sustainability ambitions. To enhance accessibility and stimulate demand, it is essential to reduce costs through modular plants, optimized processes, and improved efficiency in CO2 capture systems. However, the specific technological configurations will significantly impact the pace at which costs can decrease.

Among the various DAC technologies, liquid absorption offers the lowest initial costs due to its adaptability and use of commercially available components, allowing for larger operational scales. However, this may hinder long-term cost-effectiveness due to limited learning opportunities. In contrast, companies like Climeworks and Removr are exploring solid adsorption-based and electrochemical DAC solutions, which utilize modular designs that can lead to faster capital expenditure reductions. Overall, while capital costs are expected to be more flexible than operating expenses in the early stages of development, achieving high utilization rates in DAC plants is crucial to offsetting high capital costs, especially when relying on renewable energy sources.