Carbon Capture Firm Climeworks Facing Layoffs


Journey firms working with Swiss carbon dioxide elimination agency Climeworks instructed Skift they’re sticking with the corporate, even because it struggles to scale up operations and makes deep job cuts.

Climeworks, which constructed the world’s first industrial plant that removes carbon dioxide instantly from the air and shops it underground, lately introduced it could lay off greater than 20% of its workforce. 

The corporate cited “macroeconomic uncertainty and shifting coverage priorities.” 

Climeworks has offers in place with a number of well-known journey firms, together with Lufthansa, SWISS Air, British Airways, and the Journey Journey Commerce Affiliation (ATTA).

Swiss Air, a part of the Lufthansa Group, was Climeworks’ first aviation buyer in 2024. The airline has referred to as direct air seize an important long-term software for decreasing aviation emissions.

“Direct air seize will not be solely a vital complementary measure for aviation to attain its CO₂ targets, but in addition a extremely related know-how for the long run manufacturing of Sustainable Aviation Gas (SAF),” Swiss Air has beforehand mentioned.

Lufthansa signed a multi-year settlement with Climeworks and confirmed to Skift that it has no plans to alter course.

“Our partnership with Climeworks is in place since 2024,” a Lufthansa spokesperson mentioned. “Compensation and revolutionary processes for filtering CO₂ from the air and storing it kind a complementary instrument within the Lufthansa Group’s sustainability technique.”

Swiss Air instructed Skift its settlement runs by way of 2030 and emphasised that funds are solely made as soon as carbon seize credit are delivered. A spokesperson mentioned the corporate desires to assist the scaling of the know-how.

“Climeworks is at present the one firm on this planet that operates Direct Air Seize (DAC) commercially,” it added.

British Airways introduced a contract with Climeworks up to now for a small quantity of carbon elimination credit, although it didn’t reply to Skift’s latest request for remark.

Beforehand, the airline mentioned carbon elimination was important to its net-zero plans. “There isn’t a pathway to web zero for aviation with out carbon removals,” Carrie Harris, Director of Sustainability at British Airways, mentioned in September final yr.

The Journey Journey Commerce Affiliation was certainly one of Climeworks’ earlier travel-sector companions. It instructed Skift it’s persevering with to work with the corporate. 

It helps Climeworks by way of its “Tomorrow’s Air” program, which provides vacationers the choice to instantly take away CO₂ from the ambiance.

‘A Difficult Time’

Climeworks says its carbon seize know-how works by sucking co2 out of the air and storing it underground in rocks as steady carbonate minerals. supply: climeworks

Climeworks, which has raised over $800 million, has captured far much less carbon than anticipated.

In accordance with CDR.FYI, the agency has delivered simply 1,100 tonnes of carbon elimination up to now. That’s nicely beneath the 380,000 tonnes it has signed offers for.

In an announcement to Skift, Climeworks acknowledged the challenges however mentioned the corporate continues to be on observe to scale up. Its second plant, Mammoth, is ten occasions bigger than its first and is present process a phased rollout.

“We’re doing one thing nobody has completed earlier than,” a spokesperson mentioned. “As pioneers, we’re constructing a completely new class within the battle towards local weather change.”

Climeworks confirmed it’s nonetheless working with main journey firms together with Lufthansa, Swiss Air, British Airways, and the Journey Journey Commerce Affiliation. All stay lively purchasers, however Climeworks didn’t disclose what number of tonnes of elimination every has obtained.

When requested about latest layoffs, the corporate mentioned the choice was a part of a method to “gradual the undertaking rollout” and reinvest in lower-cost, higher-impact methods. “There are going to be bumps in the best way… however we’re set as much as take care of them and take the teachings to drive DAC ahead.”

“We’ve all the time recognized this journey could be demanding,” CEOs Christoph Gebald and Jan Wurzbacher mentioned in an announcement saying the layoffs. “At present, we discover ourselves navigating a difficult time.”

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