Which carbon capture companies secured funding?

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The carbon capture industry witnessed its most lucrative period in 2024-2025, with companies raising over $1.2 billion across multiple mega-rounds.

Direct Air Capture (DAC) and Carbon Capture, Utilization & Storage (CCUS) technologies have shifted from demonstration projects to large-scale deployment, attracting venture capital, strategic corporate backers, and government funding. Late-stage rounds dominated the funding landscape, with companies like Twelve securing a record-breaking $645 million Series C and Svante raising $318 million in Series E funding.

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Which carbon capture companies raised the most funding in 2024 and early 2025?

Twelve dominated the funding landscape with a massive $645 million Series C round led by TPG Rise Climate, making it the largest cleantech investment of 2024.

Svante secured $318 million in Series E funding led by Chevron New Energies, plus an additional $100 million convertible note from Canada Growth Fund, bringing their total 2024-2025 funding to $418 million. This funding supports building a 10 Mt CO₂/yr filter gigafactory in Burnaby, Canada, marking their achievement of unicorn valuation status.

Climeworks raised $162 million in equity funding led by BigPoint Holding and Partners Group, representing the largest carbon-removal investment round of 2025. The funding enables scaling of their Generation-3 DAC machines for global deployment.

CarbonCapture Inc. closed an $80 million Series A round led by Prime Movers Lab, with strategic participation from Amazon Climate Pledge Fund, Aramco Ventures, and Siemens Financial Services. The company also secured $26 million in pre-sales of carbon removal credits for early project de-risking.

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Who are the leading investors backing carbon capture companies and which specific startups did they fund?

TPG Rise Climate emerged as the most significant investor with $400 million deployed in Twelve's Series C round, focusing on project equity for e-fuel plant development.

Chevron New Energies led Svante's $318 million Series E round and made strategic investments to accelerate large-scale filter production capabilities. Their investment strategy targets companies with proven technology ready for commercial deployment.

Amazon Climate Pledge Fund actively supported multiple startups including CarbonCapture's $80 million Series A and Twelve's additional $83 million project funding round. Their portfolio strategy emphasizes early-stage market credibility and offtake partnerships.

Canada Growth Fund committed up to $100 million in convertible notes to Svante, structured in two tranches: $50 million for first-of-a-kind (FOAK) projects and additional funding tied to co-development capital needs. Aramco Ventures participated in CarbonCapture's Series A, aligning with their corporate strategic focus on DAC technologies. Prime Movers Lab led CarbonCapture's breakthrough industrial technology funding, while BigPoint Holding and Partners Group co-led Climeworks' $162 million round targeting global DAC market scaling.

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What were the specific funding amounts and terms for major carbon capture investments?

Twelve's $645 million Series C represented a complex financing structure combining equity and project-specific debt, with terms including equity investment plus project finance for their AirPlant™ One construction.

Svante's $318 million Series E came with pure equity terms to achieve unicorn valuation, while their separate $100 million Canada Growth Fund convertible note includes milestone-based tranches tied to project development phases. The convertible structure provides flexibility for future equity conversion based on performance metrics.

Climeworks' $162 million round consisted entirely of equity funding with no debt components, enabling technology scaling without project-specific obligations. CarbonCapture's $80 million Series A included strategic investor participation providing logistics, technology, and project support beyond capital.

Planetary Technologies' $11.35 million Series A focused on ocean alkalinity enhancement technology development, while Aircapture's $50 million Series A targets modular DAC unit expansion for industrial sites. CarbonQuest secured $20 million from ECV and Aligned Climate specifically for DAC-CCU centre scaling in Alberta.

Which regions show the highest activity in carbon capture funding?

The United States leads carbon capture funding activity, hosting headquarters for Twelve and CarbonCapture, while benefiting from substantial Department of Energy funding opportunities totaling $1.3 billion for CCUS projects.

Canada emerged as a critical hub with Svante's gigafactory development and headquarters location, supported by the Canada Growth Fund's $100 million convertible note investment. The Canadian government's strategic focus on CCUS deployment creates favorable conditions for scaling operations.

Europe maintains significant activity through Climeworks' Switzerland base and EU Innovation Fund grants totaling €4.8 billion, including specific allocations for hydrogen and CCUS projects via competitive auctions. China rapidly expanding its CCUS pipeline with government R&D funding initiatives and local investment branch participation.

The Middle East shows growing engagement through Aramco Ventures' backing of DAC startups and equity stakes in projects like the Jubail CCS hub, where Aramco holds 20% equity alongside SLB and Linde. Regional activity focuses on industrial decarbonization and strategic technology partnerships.

Which companies are considered market leaders based on capital raised, partnerships, and project scale?

Twelve stands as the funding leader with $728 million total raised ($645M + $83M), combining carbon transformation technology with large-scale e-fuel production capabilities and strategic partnerships with Microsoft, Amazon, and SMBC.

Svante achieved unicorn status with $418 million in recent funding, supported by partnerships with major corporations including Chevron, Temasek, and GE Vernova. Their 10 Mt CO₂/yr filter gigafactory represents the largest announced manufacturing capacity in the solid-sorbent sector.

Climeworks maintains leadership in pure-play DAC technology with cumulative funding exceeding $1 billion and operational projects across multiple continents. Their Generation-3 DAC machines target significant cost reductions and energy efficiency improvements.

CarbonCapture Inc. demonstrates strong corporate backing through strategic investors including Amazon Climate Pledge Fund, Aramco Ventures, and Siemens Financial Services, providing technology validation and market access. Their modular approach enables rapid deployment across diverse industrial applications.

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Are major corporations investing directly in carbon capture startups or forming strategic partnerships?

Major energy and technology corporations are actively deploying capital through dedicated venture arms and forming strategic partnerships that go beyond traditional equity investments.

Microsoft secured 500,000 tons of carbon removal credits from 1PointFive's DAC operations while funding high-quality engineered removal technologies through their sustainability portfolio. Amazon deploys capital through Climate Pledge Fund investments in CarbonCapture, Twelve, and Carbon Streaming reforestation projects, combining equity investment with strategic offtake partnerships.

Aramco Ventures led Series A investments in direct air capture startups while maintaining a 20% equity stake in the Jubail CCS hub alongside SLB and Linde. Shell actively invests in DAC technologies through Shell Ventures and participates in corporate funding rounds for emerging CCUS technologies. Occidental maximizes 45Q tax incentive benefits for DAC and point-source capture while providing offtake agreements for capture technology companies.

These corporations provide more than capital—they offer logistics networks, technical expertise, project development support, and guaranteed offtake agreements that reduce market risk for startups. The strategic value often exceeds the monetary investment through access to industrial infrastructure and customer networks.

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What specific technologies and R&D breakthroughs attracted recent funding?

Direct Air Capture technology improvements focused on energy efficiency, cost reduction per unit, modularity enhancement, and filter lifespan extension attracted the majority of funding across companies like Climeworks, CarbonCapture, and Aircapture.

Solid-sorbent filter manufacturing represented a major breakthrough area, with Svante's funding specifically targeting high-throughput filter production with 99% purity capabilities and reduced manufacturing costs. Carbon transformation and utilization technologies gained significant investment through Twelve's e-fuel production platform, converting captured CO₂ into jet fuel and electrochemicals.

Ocean alkalinity enhancement emerged as an alternative approach through Planetary Technologies' $11.35 million Series A, representing innovation beyond traditional DAC methods. Modular system design attracted investment for rapid deployment capabilities across diverse industrial applications.

R&D funding targeted breakthrough areas including advanced materials for CO₂ capture, integration with renewable energy systems, mineralization processes for permanent storage, and CCUS applications for industrial decarbonization. Energy penalty reduction remains a critical focus area for improving commercial viability across all technology approaches.

Which company received the largest single investment and what is their focus area?

Twelve secured the largest single investment with $645 million in Series C funding led by TPG Rise Climate, making it the biggest cleantech round of 2024 and the largest carbon capture investment ever recorded.

The company focuses on carbon transformation technology that converts captured CO₂ into sustainable aviation fuel and electrochemicals through their proprietary electrocatalysis platform. Their AirPlant™ One facility represents commercial-scale deployment of CO₂-to-fuel production technology.

Twelve's technology addresses both carbon removal and sustainable fuel production, targeting the aviation industry's decarbonization needs through drop-in fuel alternatives. Their approach creates revenue streams from both carbon credits and fuel sales, improving the economic model compared to pure capture-and-storage operations.

The funding structure combined equity investment with project finance, enabling construction of production facilities while maintaining technology development capabilities. Strategic partnerships with airlines and fuel distributors provide guaranteed offtake agreements that reduce market risk and ensure revenue streams for scaled deployment.

How is the funding landscape evolving between early-stage and large-scale late-stage rounds?

Late-stage rounds (Series C and beyond) dominated funding by value in 2024-2025, with mega-rounds like Twelve's $645 million and Svante's $318 million representing the majority of total capital deployed.

Early-stage funding continued growing in deal count but remained smaller by total value, with Series A rounds like CarbonCapture's $80 million and Planetary Technologies' $11.35 million providing proof points for technology validation. The funding gap between early and late-stage rounds widened significantly, indicating investor preference for proven technologies ready for commercial deployment.

Convertible notes and debt instruments increasingly supplement equity funding for project-specific milestones, as seen in Svante's $100 million convertible note structure. This blended approach de-risks scaling operations while providing flexibility for future equity conversion based on performance metrics.

Government grants and public funding complement private investment, with DOE CCUS funding opportunities totaling $1.3 billion for point-source capture, $1.8 billion for DAC hubs, and $500 million for transport infrastructure. EU Innovation Fund grants of €4.8 billion include specific allocations for CCUS projects, creating a supportive funding ecosystem for companies at all stages.

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What was the total investment in carbon capture for 2024 and how does it compare to previous years?

Total CCUS equity and debt financing reached approximately $1.2 billion in 2024, with major mega-rounds from Twelve ($645M) and Svante ($318M) representing the bulk of investment activity.

Global CCUS investment tripled from 2022 to 2024, culminating in $6.4 billion total investment in 2024 when including project finance and government funding alongside private equity rounds. This represents unprecedented growth in capital deployment for carbon capture technologies.

The 2024 funding level significantly exceeded previous years' totals, with the carbon capture market size growing from $2.8 billion in 2020 to projected $4.9 billion by 2026 at approximately 9.9% compound annual growth rate. Private venture funding specifically increased from minimal levels in 2020-2021 to over $1 billion in 2024.

Investment quality improved alongside quantity, with later-stage rounds indicating technology maturation and commercial readiness. The shift from demonstration projects to deployment funding signals market confidence in carbon capture's transition to viable commercial operations. Government funding programs provided additional support through tax incentives like the 45Q credit and direct funding through programs like the Bipartisan Infrastructure Law.

What are analyst projections for carbon capture investment and technology development in 2026?

Analysts project the carbon capture and storage market will reach $4.9 billion by 2026, growing at approximately 9.9% compound annual growth rate from the current $2.8 billion baseline established in 2020.

The broader CCUS technology market is forecast to expand from $3.4 billion in 2024 to $9.6 billion by 2029, representing a 23.1% compound annual growth rate driven by technology improvements and policy support. Global CCUS capacity is projected to reach 430 Mt CO₂/year by 2030 based on current project pipelines, though this falls short of the 1 Gt/year needed for 1.5°C climate pathway compliance.

Investment requirements for meeting climate targets demand $196 billion in CCUS funding through 2034, according to Wood Mackenzie analysis. This indicates substantial funding gaps that must be filled through continued private investment, government support, and corporate partnerships.

Technology development projections focus on cost reduction targets, with DAC costs expected to decline from current $600-1000 per ton to $100-300 per ton by 2030 through manufacturing scale and efficiency improvements. Carbon prices and policy incentives will play critical roles in determining actual deployment rates and investment attractiveness through 2026.

Which new players entered the carbon capture market recently and made notable impact?

Planetary Technologies emerged as a notable new entrant with their $11.35 million Series A for ocean alkalinity enhancement, representing innovation beyond traditional DAC approaches and expanding the carbon removal technology landscape.

Aircapture secured $50 million Series A funding to expand modular DAC units specifically designed for industrial site deployment, targeting a different market segment than existing players. CarbonQuest raised $20 million from ECV and Aligned Climate to scale DAC-CCU operations in Alberta, focusing on regional deployment strategies.

New investor entrants include specialized climate funds like BigPoint Holding and Partners Group, which co-led Climeworks' $162 million round, bringing dedicated carbon removal investment expertise. TPG Rise Climate emerged as a major force with their $400 million investment in Twelve, representing traditional private equity's entry into climate technology.

Corporate venture arms expanded their carbon capture focus, with Chevron New Energies leading large rounds and Aramco Ventures backing multiple startups. These strategic investors bring industry expertise and potential partnerships beyond capital deployment. Government-backed funds like Canada Growth Fund introduced new financing structures through convertible notes tied to project milestones, creating hybrid public-private funding models.

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Conclusion

Sources

1. PR Newswire - Twelve Announces $645 Million in Funding
2. RBC Capital Markets - Svante's $318MM Series E
3. Svante Inc - Canada Growth Fund Investment
4. CarbonCapture - $80 Million Series A Financing
5. ESG News - Climeworks Secures $162M
6. Carbon Herald - Twelve Raises Additional $83M
7. Hogan Lovells - DOE Carbon Management Funding
8. BloombergNEF - Carbon Capture Investment Record
9. Carbon Herald - Planetary Technologies Series A
10. Carbon Credits - Aircapture Funding
11. Globe Newswire - Global Carbon Capture Markets to 2026
12. BCC Research - Carbon Capture and Storage Market