Carbon Engineering Launches Carbon Removal Service

Carbon Engineering is progressing with the establishment of its carbon removal service, enabling clients to procure the removal of carbon dioxide directly from the atmosphere utilizing its direct air capture (DAC) technology.

Shopify as Inaugural Customer

The unveiling of this service, coupled with the announcement of Shopify as the company’s initial client, coincides with similar advancements made by Carbon Engineering’s primary competitor, Climeworks. Climeworks recently finalized an agreement with Northern Lights, a Swedish sequestration firm, to advance its own DAC-as-a-service offering.

Through the Shopify agreement, Carbon Engineering has secured its first customer for 10,000 tonnes of permanent carbon removal capacity originating from a substantial DAC project.

Project Implementation and Timeline

The removal and subsequent sequestration processes will be managed by 1PointFive, Carbon Engineering’s plant development partner. 1PointFive is a U.S.-based development company currently focused on the engineering of Carbon Engineering’s first industrial-scale facility.

Completion of this facility is projected for 2024.

The Importance of Early Adoption

Noah Deich, president and founder of Carbon180, a climate advocacy organization, emphasized the impact of early adopters of DAC technology. He stated that procuring DAC services not only accelerates companies’ progress toward ‘net-zero’ commitments but also contributes to the technological learning curve.

This learning curve drives down costs and enhances the affordability and accessibility of DAC services for a broader range of customers in the future.

Competitive Landscape

The timelines of both Carbon Engineering and Climeworks for market entry are now comparable. Fortunately, the immense scale of carbon dioxide emissions requiring capture and sequestration—measured in billions of tons—ensures a sufficiently large market for both companies to thrive.

Shopify's Commitment

Shopify’s commitment positions the company as the largest publicly announced purchaser of carbon removal solutions based on direct air capture technology.

Statements from Leadership

Steve Oldham, CEO of Carbon Engineering, affirmed the company’s dedication to delivering a scalable and cost-effective solution for atmospheric carbon dioxide removal. He highlighted that the company is nearing large-scale deployment and that securing customer interest is a crucial next step.

Oldham added that the new service simplifies the integration of permanent carbon removal into net-zero strategies for both corporations and governments.

Partnerships and Investment

Carbon removal unit purchases will be fulfilled through a network of distributed air capture facilities deployed by 1PointFive. This partner benefits from substantial investment from entities including Oxy Low Carbon Ventures, LLC, a subsidiary of Occidental, and Rusheen Capital Management.

Global Expansion

Carbon Engineering is also collaborating with Pale Blue Dot Energy, based in the U.K., to extend the reach of its direct air capture technology to Europe.

1PointFive's Perspective

Richard Jackson, Chairman of 1PointFive, welcomed the news and commended Shopify’s climate leadership. He acknowledged the necessity of permanent carbon removal, as recognized by climate experts like the Intergovernmental Panel on Climate Change, to achieve a sustainable, low-carbon future.

1PointFive anticipates bringing large-scale carbon removal capabilities, powered by Carbon Engineering’s technology, to the market, assisting customers globally in reaching their climate objectives.