Two carbon capture pioneers, CarbonQuest and Spiritus, have successfully concluded funding rounds that will enable them to develop their technologies. Carbon capture is being touted as a key technology to enable the net zero transition, although volumes remain very low so far.
Each company has a different approach. CarbonQuest uses distributed carbon capture technology, while Spiritus is pushing ahead with direct air capture.
Distributed Carbon Capture (DCC) is an emerging technology designed to capture CO₂ directly at the point of emission from decentralized sources such as homes, buildings, industrial sites, and even vehicles. Unlike large-scale carbon capture systems that focus on industrial plants or power stations, DCC integrates capture mechanisms into existing infrastructure, reducing the need for extensive CO₂ transport and storage networks. This approach enables emissions reduction across multiple sectors, with potential applications in air conditioning systems, small factories, and mobile sources like ships and trucks.
In contrast, Direct Air Capture (DAC) removes CO₂ from the ambient atmosphere rather than targeting specific emission sources. DAC facilities use chemical processes to extract CO₂ from the air, which is then stored underground or repurposed for industrial use. While DAC plays a critical role in long-term carbon removal, it requires significant energy input due to the low concentration of CO₂ in the air. DCC, by capturing emissions at higher concentrations before they disperse, offers a more energy-efficient way to reduce localized emissions while complementing broader carbon removal strategies.
CarbonQuest’s Funding Round
CarbonQuest’s $20 million funding round was led by Riverbend Energy Group. Additional contributions were made by two institutional investors, namely Energy Capital Ventures (ECV) and Aligned Climate Capital. This latest infusion of capital is earmarked for the wider deployment of CarbonQuest’s Distributed Carbon Capture technology across numerous customer segments in North America, as well as for the recruitment of top-tier talent in the industry.
The funding is poised to enable CarbonQuest to achieve the lowest cost per ton in the carbon capture field and enhance system efficiency. Building on its experience from six commercial deployments, the company is set to address new markets reliant on onsite power or CO2 reuse. The investment partners have pinpointed CarbonQuest as a vital enabler of the ongoing energy transition, particularly within the underexplored segment of distributed carbon capture.
Vic Pascucci, Managing General Partner and Co-Founder of Energy Capital Ventures, articulated the venture capital firm’s enthusiasm, stating, “As a venture capital fund focused on the resilience, sustainability, and digital transformation of the natural gas industry, we are extremely excited to add CarbonQuest to our portfolio.” He elaborated that CarbonQuest presents innovative decarbonisation solutions applicable to a diverse spectrum of industries, including manufacturing and data centres.
Shane Johnson, the CEO of CarbonQuest, expressed his excitement at closing the funding round, underscoring the investment’s potential to accelerate expansion efforts while cultivating a diverse portfolio of projects. Meanwhile, Peter Davidson, CEO of Aligned Climate Capital, noted the pressing need for effective carbon capture solutions across commercial and industrial facilities, affirming their commitment to
CarbonQuest’s advancements follow its December 2024 Memorandum of Understanding (MoU) with Carbfix, a carbon dioxide mineral storage operator, which aims to identify optimal sites for carbon capture and mineralisation. The firm is presently finalising additional projects targeting immediate emissions reductions within “hard-to-abate” facilities throughout North America.
Spiritus’ Series A
Additionally, climate-tech startup Spiritus has secured $30 million in Series A financing to further its development of direct air capture (DAC) technology, which plays a vital role in carbon removal strategies crucial for achieving net-zero emissions. Founded in 2022 by CEO Charles Cadieu and CTO Matt Lee, Spiritus aims to significantly lower the cost of DAC from an average of $1,000 per ton to $100 per ton through its innovative “Carbon Orchard” approach. This passive system for capturing CO2 without the extensive energy needs typically associated with DAC reflects a movement towards more economically viable carbon removal technologies.
Cadieu highlighted the increasing demand for decarbonisation in tandem with heightened industrial demand, affirming, “Our DAC technology brings large-scale decarbonisation within reach.” The recent funding round was co-led by Aramco Ventures and included other key investors, which will facilitate the establishment of projects such as a pilot facility in New Mexico and a major sequestration project in Wyoming, projected to capture two megatons of CO2 annually.
While the costs of both DCC and DAC are high and success isn’t guaranteed, some investors are clearly willing to play the long game.
