The world has likely surpassed the 1.5 degrees Celsius warming target set by the 2016 Paris Agreement, increasing the risk of catastrophic consequences such as extreme weather events, infectious diseases, and declining wildlife populations. In response, a slew of carbon-capture startups are emerging to reverse this trend by removing large amounts of CO2 from the atmosphere. One such startup, Heirloom Carbon, has taken a significant step forward by announcing a $150 million Series B funding round to scale up its carbon removal technology.

Heirloom Carbon's innovative approach involves using crushed lime derived from limestone to capture carbon dioxide from the air, rather than relying on liquid-based methods. The company treats the lime with a proprietary compound to speed up the absorption process, and then heats it to release the CO2 for storage. This technology has the potential to significantly reduce the cost of carbon capture, which currently ranges from $600 to $1,000 per metric ton.

The startup is betting that by building larger facilities and capturing more carbon, it can bring down the cost per metric ton to $200 to $300 by the early 2030s. According to company spokesperson Scott Corielle, Heirloom has "line of sight to profitability" at these prices. While still above the $100 per metric ton sweet spot for a viable industry, Corielle expressed confidence that the company is "on a trajectory" to hit this target in the long term.

To put the $150 million fundraise into perspective, if invested in carbon credits at current prices, it would be enough to buy 150,000 to 250,000 metric tons worth. This is equivalent to a decade's worth of carbon removal from Heirloom's Louisiana plant, set to open in 2026. The new round does not include carbon credits for investors, however.

Heirloom Carbon has already secured contracts to sell carbon credits to prominent buyers such as Microsoft and Frontier, a leading advanced market commitment company owned by Stripe. The participation of Japan Airlines in the funding round is particularly noteworthy, as some experts argue that it may be more cost-effective for airlines to continue using fossil-based jet fuel and offset the resulting carbon pollution through direct air capture. This suggests that airlines are considering DAC as a viable alternative to e-fuels, which remain prohibitively expensive.

The funding round was led by Future Positive and Lowercarbon Capital, with additional participation from Ahren Innovation Capital, Breakthrough Energy Ventures, Carbon Direct Capital, MCJ Collective, Mitsubishi Corporation, Mitsui & Co., MOL Switch LLC, Quantum Innovation Fund, and Siemens Financial Services. As the world grapples with the urgent need to combat climate change, Heirloom Carbon's innovative technology and significant funding raise offer a promising step towards a more sustainable future.

Climate scientists have come to acknowledge that carbon removal technology will be essential in the coming decades as the world continues to rely on fossil fuels. With Heirloom Carbon's latest funding round, the company is poised to play a significant role in the development of this critical industry. As the world continues to navigate the challenges of climate change, innovative startups like Heirloom Carbon are offering a glimmer of hope for a more sustainable future.