Carbon Tech Industry Poised for Transformative Growth

December 5, 2023


This report focuses on the carbon tech industry landscape, highlighting its potential for growth and investment. The industry stands on the brink of transformative growth, with a confluence of factors aligning to make it a hotspot for investors seeking to capitalize on the intersection of technology, policy, and sustainability. One of the key highlights of the report is the surging VC investments into the carbon tech space, underscoring investor confidence in the long-term viability and impact of tech-driven carbon removal solutions. Additionally, the report touches on the increasing corporate demand for carbon credits to meet net-zero targets. It also looks at how artificial intelligence (AI) could improve the uptake and efficiency of carbon removal techniques, indicating a future of sophisticated and optimized carbon management. The report also spotlights several up-and-coming startups in the carbon tech space that are poised for long-term value generation. With a long runway ahead, the carbon tech industry stands at the forefront of a transformative era, presenting immense opportunities for investors, innovators, and policymakers alike in the race toward a carbon-neutral future.

Key Points

  • The carbon tech market is ripe for investment, with a substantial gap between a CCS capacity of 244 million tons and global CO2 emissions of 37.49 billion tons.
  • Venture capital investment in carbon and emissions tech hit a record $7.6 billion in 3Q23, reflecting investor confidence in the sector.
  • Startups in carbon credit marketplaces, accounting, and management stand to gain from the increasing demand for carbon credits.
  • Traditional carbon removal methods are insufficient; there’s an urgent demand for advanced, tech-based carbon removal methods.
  • Direct Air Capture (DAC) and Carbon Capture and Storage (CCS) are at the forefront of technology-driven carbon reduction.
  • DAC’s growth is spurred by corporate net-zero targets and a voluntary carbon credit market that quadrupled to $2 billion in 2021.
  • The sector has secular regulatory tailwinds including the Infrastructure Investment and Jobs Act and Inflation Reduction Act that are accelerating tech-based carbon removal adoption.
  • AI is poised to transform CCS by enhancing predictive capabilities and operational efficiency.

Executive Summary

The stark demand-supply gap between the burgeoning carbon emissions and the nascent carbon capture capabilities presents a golden opportunity for innovation and investment in the carbon tech sector. The interplay between burgeoning market demand, progressive policy frameworks, and breakthroughs in carbon removal technology heralds a new era for the carbon tech industry. The pace of emission is quickly outpacing traditional carbon sequestration methods, making room for sophisticated, technology-driven solutions like direct air capture, carbon capture and ocean-based capture. These processes are gaining momentum, fueled by corporate demand for carbon neutrality and the carbon credit market that’s experiencing unprecedented growth. As a result, VC investments into the carbon tech space are surging, underscoring investor confidence in the long-term viability and impact of tech-driven carbon removal solutions.

As regulatory and corporate pressures mount to address climate change, startups specializing in carbon credit marketplaces, as well as those offering accounting and management services, are strategically positioned to benefit from the increasing demand for carbon cred- its. While there are various methods of technology-driven carbon reduction, direct air capture, and carbon capture and storage are leading the charge. Coupled with this technological momentum are significant regulatory tailwinds, including initiatives like the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, providing the framework and financial incentives necessary for carbon tech ventures to innovate, scale, and become more commercially viable. Furthermore, the integration of Artificial Intelligence (AI) into CCS processes promises to revolutionize the sector by boosting predictive capabilities and operational efficiency.

Carbon Market Ecosystem – An Overview

The carbon market landscape comprises various kinds of companies. A key component of the landscape are large corporations that pledge net zero and acquire carbon removal credits, where companies engage with specialized providers through direct procurement channels or through curated marketplaces that ensure the high quality and integrity of the credits. These marketplaces are facilitated by integrated verifiers who set stringent standards and provide a transparent platform for transactions. Perhaps the most vital component of this landscape is carbon removal enterprises, ranging from traditional afforestation projects to advanced direct air capture initiatives, all offering robust and verifiable solutions poised to shape the future of carbon management.

Underpinning the entire carbon market are independent quality enablers. These entities deliver ratings, measurement, reporting, and veri- fication services. Their role is indispensable in fortifying the market’s credibility, as they authenticate the environmental integrity of carbon credits, thereby instilling confidence among participants and facilitating the market’s expansion. This comprehensive structure of the voluntary carbon market underscores its potential as an instrumental domain for sustainable investment and environmental stewardship.

Supply-Demand Rift: The Carbon Tech Investment Imperative

The current imbalance between the carbon emissions produced and the capacity to capture them is a pressing issue. Technologies like CCS and DAC emerge as critical responses to this mismatch. Despite the potential of these technologies, global CO2 emissions continue to climb, reaching a record of 37.49 billion tons in 2022, a slight increase from 37.12 billion tons the previous year, per Statista. This per- sistent rise in emissions, even with the introduction of more clean energy solutions, points to a significant challenge in meeting climate targets.

Natural carbon sequestration methods, like improved land management and reforestation, are the predominant techniques currently employed, removing an estimated 2 billion tons of CO2 from the atmosphere annually. A report from the University of Oxford highlights that while these natural approaches are beneficial, the contribution of new technology-driven carbon removal methods is just 0.1% of the total removed annually.

This stark difference between emissions and removal capacity underscores the potential for growth in carbon capture technologies. The expansion and enhancement of CCS and DAC can not only improve our ability to reduce atmospheric CO2 but also create opportunities for economic advancement within the green technology sector. With these technologies in their infancy and underutilized, there’s a vast opportunity for development and scale, presenting a promising landscape for investment and innovation in climate change solutions.

Startups at the forefront of carbon capture technology are emerging as key drivers of economic expansion within the green tech sec- tor, poised to capitalize on global climate initiatives. The US Department of State is committed to integrating advanced technologies to achieve an ambitious reduction of 300-500 million tons of CO2 annually by 2050. In parallel, the EU’s ‘Fit for 55’ initiative is targeting a significant decrease in carbon emissions, aiming to remove 225 million tons of CO2 by 2030.

For the green technology market to meet the stringent global warming limit of a 2°C increase by 2050, a staggering increase in carbon removal capabilities is needed. This includes a projected 1,300-fold increase in CO2 removal through emergent tech solutions, coupled with a substantial scaling up of natural carbon absorption processes.

These strategic goals translate into a rapidly growing demand within the carbon capture market, presenting a substantial economic opportunity for agile startups in this domain. The race to develop scalable, efficient carbon removal technologies is not just an environmental imperative but also a significant growth vector for innovative firms. The intersection of technology and environmental responsibility is creating a fertile ground for investment, innovation, and economic activity, with carbon capture startups positioned to be at the epicenter of this burgeoning industry.

Growing Pipeline of CCS Facilities

As of September 2022, the cumulative capacity of CCS project under development had reached 244 million tons per annum (Mtpa) of CO2, representing a substantial 44% surge over the past year.

Demand Outlook For CDR

In the face of escalating climate imperatives, the carbon dioxide removal (CDR) market is poised for transformative growth. Analysis from Boston Consulting Group outlines three scenarios for the future demand and market size for CDR from 2030 to 2040 across voluntary, compliance, and government procurement markets:

Low Scenario: Projects a CDR demand of 40–80 million tons (Mt) per annum, leading to a market value of $10–20 billion. This is based on a slow increase in Net Zero pledges, covering 40% of global emissions by 2030, with a limited share achieved through CDR. The voluntary market’s average durable CDR portfolio price is estimated at $300 per ton in 2030, decreasing to $250 by 2040.

Medium Scenario: Estimates a CDR demand of 70–230 Mt annually, corresponding to a market size of $15–45 billion. It assumes a mod- erate rise in Net Zero pledges, aiming to cover 50% of emissions by 2030. The average price for durable CDR is anticipated to be $250 per ton in 2030, falling to $200 by 2040.

High Scenario: Anticipates a CDR demand of 200–870 Mt per year, with a market size of $40–135 billion. This scenario is based on a high growth in Net Zero pledges, expecting to encompass 60% of emissions by 2030. The expected average price in the voluntary market is

$200 per ton in 2030, dropping to $150 by 2040.

Further, the rising proportion of Fortune 500 companies committing to near or long-term net zero targets underscores a promising outlook for the carbon tech sector. By 2022, 38% of these major corporations have set such environmental benchmarks, signifying a robust uptick in dedication to climate goals. This figure reflects an impressive 394% surge in corporate pledges for carbon neutrality within just the past two years, marking a swift and decisive turn in business strategy towards sustainable practices. The trend, characterized by a steep increase starting in 2022, highlights a critical and rapid transformation in the way corporations are addressing their environmental impact.

Economies of Scale to Accelerate Tech-Based Carbon Removal Adoption

Tech-driven carbon removal is poised to evolve similarly to how waste management did decades ago. Initially costly and reliant on public support to establish a foothold, this industry is poised to become profitable over time. Policymakers are increasingly endorsing this per- spective, allocating a significant portion of the recently approved climate-related funds in the US to push the tech-driven carbon removal industry. This includes enhanced tax credits, as stipulated in the Inflation Reduction Act, offering up to $85 per ton for permanent CO2 storage and $60 per ton for CO2 used in enhanced oil recovery (EOR).

CCS is relatively economical ranging from $15-25 per ton of CO2 for industrial operations generating concentrated CO2 streams, ex- emplified by sectors like ethanol production and natural gas processing, to $40-120 per ton of CO2 for processes dealing with dilute gas streams, such as those in cement production and power generation. However, for DAC to gain widespread adoption, the end-to-end cost of CO2 removal, encompassing final storage, must decrease substantially. Presently at approximately $600 to $1,000 per ton of CO2, this cost should ideally drop to below $200 per ton. This desired cost range is akin to that of other waste management processes, where disposal costs for solid waste in high-income countries typically range from approximately $170 to $205 per ton, per BCG.

The reduction in cost would trigger a significant surge in demand, enticing private developers to expand capacity and rendering the tech- nology economically accessible on a global scale. To realize this ambitious cost reduction, it is imperative to cultivate substantial capacity in the short term, driven by the anticipation of a robust market for carbon credits. For instance, Partners Group, a leading global private equity firm, has entered into a 13-year agreement with Climeworks to remove over 7,000 metric tons of CO2 from the atmosphere on their behalf, with permanent underground storage. Moreover, proactive involvement from governments and vario      holders, includ-

ing organizations responsible for carbon accounting and setting net-zero targets is also propelling the adoption.

Policy Push Paves Way for Carbon Tech Uptake

The US has articulated far-reaching climate goals, with a clear aim for a carbon-neutral economy by 2050 and a transition to 100% clean electricity by 2035. To fulfill these ambitions, there’s an increasing reliance on carbon removal technologies. The federal government’s strategy has been to reinforce policies that incentivize private sector investment in such technologies.

Significant legislative actions, such as the Infrastructure Investment and Jobs Act, have pledged substantial funds towards CCS initia- tives—over $12 billion, which includes specific allocations for carbon storage projects and technological advancements spearheaded by the Department of Energy. Moreover, the Inflation Reduction Act has revamped the 45Q tax credit, a crucial step to spur the deployment of carbon removal technologies. It achieves this by offering more flexible construction timelines, lowering the thresholds for carbon cap- ture, and broadening tax credit eligibility.

On the state level, various legislations have been adopted to support carbon removal initiatives, with states like Pennsylvania, West Virgin- ia, North Dakota, and California leading with specific programs aimed at CO2 storage and removal.

In a parallel thrust, the CHIPS Act of 2022 and the Carbon Dioxide Removal R&D Act of 2023 allocate billions for research and develop- ment, and for demonstration projects that focus on carbon removal. These acts are in sync with the Federal Carbon Dioxide Removal Leadership Act’s directive for the DOE to implement tech-centric carbon removal strategies, with an annual target of 10 million net metric tons by 2035.

As part of the larger net-zero transition, carbon credits have become a cornerstone in the emerging carbon market, driven by over 60 countries. Through cap-and-trade systems, these credits aim to reshape economic incentives and catalyze a reduction in emissions, demonstrating the global shift towards valuing carbon management within the economic framework.

These regulations have already started to pay off start-ups. For example, Carbon America, which is building two commercial CCS projects in Colorado, has received government funds under a $6 billion Industrial Demonstrations Program. Post-IRA, various new projects have been announced with a combined carbon removal capacity of ~1,800 metric tons. Further, data from Rhodium Group anticipates that the IRA will significantly bolster the US carbon capture and direct air capture infrastructure. The firm projects a 35-40% increase in installed capacity by 2030, which would represent an uptick to 100-103 million metric tons, as compared to 74 million metric tons without the IRA’s influence.

Carbon Tech Rides the Credit Demand Wave

Robust demand from various companies for carbon credits, often utilized to fulfill corporate net-zero obligations, has been the key driving force behind most tech-driven carbon removal projects. A joint report by BCG and Shell suggests that the voluntary carbon credits market is anticipated to expand significantly, from $ 2 billion in 2021 to $10-40 billion by 2030. The report further suggests the compliance carbon credit market reached around $850 billion in 2021, up 2.5 times from 2020. These high-on-demand credits are traded in marketplaces autonomously regulated by non-governmental entities in the case of voluntary carbon credits and under governmental regulations in the case of compliance credits. The carbon credit marketplaces allow companies to offset their carbon footprint through the purchase of carbon credits from certified sustainable projects around the world. Startups in the carbon credit marketplace are poised to become highly valuable companies in the future owing to the rising demand for carbon credits. Xpansive, a California-based global marketplace for carbon and other ESG commodities, is well-positioned for sustained growth. Moreover, startups providing software solutions for carbon credit accounting and management are also poised to benefit from the rapid growth of the parent market. Persefoni, an Arizona-based SaaS startup, offering a climate management and accounting platform, is poised to become a highly valuable company in the future. Similarly, Watershed, a California-based enterprise climate platform will benefit from the rising adoption of tech-driven carbon removal.

Prominent purchasers of carbon credits include industry leaders such as Airbus, Shopify, Swiss Re, Microsoft, and UBS. Moreover, Frontier, a demand aggregator founded by Stripe, Alphabet, Shopify, Meta, and McKinsey, has a commitment to $1 billion worth of permanent carbon removals. Additionally, NextGen, a joint venture between South Pole and Mitsubishi Corporation, has entered the scene as a demand aggregator, disclosing pre-purchases of approximately 200,000 tons of CO2 removals. These sizable, advanced commitments of carbon credits are poised to enable economies of scale, thereby reducing the cost of DAC.

Both voluntary and compliance carbon credit markets are projected to grow at lucrative growth rates, per BCG. These expansive markets encompass avoidance credits for external projects that effectively mitigate emissions, such as wind farm construction, and removal credits for projects that actively reduce existing emissions. Removal initiatives employ both nature-based solutions like afforestation and technology-driven solutions such as DAC.

Despite the relatively high cost associated with removal credits, they have gained popularity due to their superior quality and the ease of verifying a project’s impact compared to avoidance credits. The market is poised to witness a shift towards tech based removals as the technology matures and becomes more cost-effective, driving increased market share for such solutions.

EOR to Augment the Demand for Tech-driven Carbon Removal

The integration of technology-driven carbon removal processes has become pivotal in enabling EOR operations. In instances where carbon dioxide exhibits low solubility in oil, CO2 injection serves to augment reservoir pressure, thereby optimizing the mobilization of oil towards production wells. The US has harnessed the technique for over three decades, resulting in the remarkable achievement of recovery rates approaching 70% in select fields. EOR not only extends the operational lifespan of oilfields by several decades but also unlocks the potential for the recovery of millions of additional barrels of oil, thereby emphasizing the indispensable nature of this technique. Projections from MarketsandMarkets indicate a robust growth trajectory for the EOR market, with an expansion from $43.3 billion in 2020 to $59.4 billion by 2025, at a CAGR of 6.5%. This growth is propelling the demand for CO2, a demand that is poised to catalyze the expansion of the technology-driven carbon removal market as well.

Soaring VC Investments - Testament to Techdriven Carbon Removal’s Potential

VCs are pouring money into carbon and emissions tech, with 3Q23 marking a historic surge, culminating in $7.6 billion in deal value across

219 deals—the highest on record, per Pitchbook. The funding soared 120% quarter-over-quarter and 110% year-over-year.

This spike in investment points to a real excitement about the potential of these companies to make a big difference in reducing carbon

emissions when the world is paying more attention to climate change and looking for sustainable solutions.

AI’s Role in Accelerating Carbon Tech Adoption

AI’s capacity to forecast and optimize outcomes is a catalytic factor poised to revolutionize the CCS process. For instance, state-of- the-art image processing algorithms aid in identifying carbon emissions in industrial settings. AI models leveraging satellite data enable the comprehensive monitoring and analysis of emissions on a global scale. Moreover, AI, combined with natural language processing, empowers the prediction of optimal materials for carbon separation. These predictive capabilities empower businesses and governments to proactively forecast emissions and establish effective reduction targets.

One of the most prevalent methods for CCS is point-source carbon capture, which entails capturing CO2 at the source of emission from industrial facilities. Notably, Nvidia’s AI technology, utilizing the Fourier neural operator’s architecture, can result in a remarkable 700,000- fold acceleration in CCS modeling. This breakthrough significantly accelerates carbon sequestration simulations, reducing the timeline from years to mere seconds, representing a substantial leap in environmental impact assessment.

Innovative startups amalgamating AI with CCS are emerging as lucrative investment prospects. San Francisco-based Pachama, employing satellite data and AI software to facilitate carbon credit vetting and investment, successfully raised $55 million in its Series B funding round in 2022. UK-based Sylvera secured $104 million in funding, employing machine learning tools for efficient carbon offset performance monitoring. These startups’ innovative approaches to enhancing carbon cap      align perfectly with the growing demand for sustainable practices, affording them a competitive edge in the marketplace.

In addition, artificial intelligence has become a game-changer in estimating carbon storage capacity volume using sparse 2D/3D seismic data. Realistic estimates of carbon storage capacity require integration, analysis, pre-processing, and data engineering of various sources of historical data. This process enables the computation of the Relative Storage Index (RSI), an ML-predicted value that defines suitable storage ranges for diverse geological areas. This advancement enhances the creation of data-centric geological models for forecasting subsurface carbon dioxide storage capacity. Recent use cases demonstrate that dine learning solutions can accelerate carbon capture by as much as tenfold compared to traditional modeling methods.

Long Runway Ahead for Tech-driven Carbon Removal

To achieve a net-zero carbon emissions target by 2050, there is an imperative to dramatically increase tech-driven carbon removal efforts. Currently, only 0.04 Gtpa of CO2 is being captured annually, but this must surge to approximately 6 Gtpa by 2040 and exceed 8 Gtpa by 2050. The key focus should be on scaling up CCS for fossil fuel and industrial process emissions, aiming to reach approximately

3.4 Gtpa by 2050. This includes 2.4 Gtpa of CCS implementation within the cement, chemical, and steel sectors and an additional 1.1 Gtpa captured in the production of blue hydrogen from natural gas using CCS. Bioenergy with CCS (BECCS) is crucial in attaining the net-zero objective, with a target of 4.5 Gtpa by 2050. Out of this, 3.3 Gtpa should be allocated to the power and heat sectors, while 1.2 Gtpa should be directed towards the cement, chemical, and petrochemical sectors. Direct air capture with storage (DACCS) or utilization (DACCU) is in the early stages of development, with minimal commercial implementation, necessitating further development and validation before its potential can be accurately assessed. Despite technological capabilities, the progress in carbon capture lags significantly behind the required pace due to high costs, regulatory uncertainty, a lack of long-term signals, and economic incentives. CO2 transport options, while proven, face limitations in scale, and cost estimates vary depending on the context. Geological storage of CO2 has been done with relative success, but it remains on a small scale, marked by regional disparities and uncertain costs. Carbon utilization can complement storage limitations in the short term but should be restricted to applications that do not result in subsequent CO2 rel      important to note that existing CO2 capture processes are not flawless and still yield some emissions that demand accounting.

Startups Finding New Avenues for Carbon Storage

Two key methods for carbon sequestration are geological, involving the storage of CO2 underground, and biologic, encompassing the storage of atmospheric carbon in vegetation, soils, woody products, and aquatic environments. Startups are innovatively finding new avenues for carbon storage, such as Ebb Carbon, based in California, which secured a $20 million Series A to leverage the ocean as a sig- nificant carbon sink. Meanwhile, California-based Captura, with $12 million in funding, focuses on direct ocean capture to reduce oceanic CO2 Loam Bio, an Australian startup, raised $67 million in a Series B round in February, emphasizing the transformation of croplands into massive carbon sinks through soil carbon stabilization. Undo, based in the UK, employs enhanced rock weathering for farmland, while Charm Industrial, securing $100 million in Series B funding, explores deep underground carbon storage by converting captured CO2 into a stable liquid. The quest for carbon removal extends to human-made environments, with startups like CarbonCure Technologies and Brimstone Energy concentrating on incorporating recycled CO2 into concrete production. Additionally, seed-stage startups such as ocked in Berlin and Carbonaide in Finland are actively pursuing sustainable building materials to transform structures into effective carbon sinks.

Company Spotlight

Ebb Carbon

  • Founded – 2021
  • Total Raised – $23 M
  • Last Round – $20M Series A
  • Valuation – $77 M

Ebb Carbon, a California-based startup specializing in electrochemical ocean deacidification and atmospheric CO2 capture, forges stra- tegic partnerships with aquaculture farms, desalination plants, ocean research laboratories, and various industrial entities engaged in seawater processing, facilitating waterborne carbon capture. Backed by a $20 million in series A funding, the company is poised to launch the end of 2023. Moreover, a vision for the rapid deployment of a underscores the growth-oriented vision of the company’s leadership team.


  • Founded – 2007
  • Total Raised – $472 M
  • Last Round – $15M Series E-III

Svante, a Canadian carbon capture and storage startup, specializes in the manufacturing of filters and modular rotary contactor machines designed to capture and eliminate CO2 from industrial emissions and the atmosphere. Svante’s recent collaboration with Samsung Engi- neering, aimed at identifying, developing, and delivering commercial Carbon Capture, Utilization, and Storage (CCUS) projects in Asia and the Middle East, heralds a promising trajectory of sustained revenue growth in the forthcoming years. Moreover, a strategic alliance with Carbon America to drive the commercial deployment of CCUS projects in the US underscores the company’s substantial revenue poten- tial through market penetration in the US. Additionally, a pivotal joint development agreement with 3M to jointly create and manufacture CO2 removal products serves to fortify the platform’s credibility. Furthermore, Svante’s impressive roster of partners, including Lafarge, Pilot Energy Partners, and General Electric, among others, firmly solidifies the credibility of its business model. Leveraging a strategic leading chemical corporation BASF as a primary material supplier, the company has successfully established a resilient supply chain.


  • Founded -2009
  • Total Raised – $814 M
  • Last Round – $20M Series F-II

Climeworks, a Swiss climate technology startup, specializes in direct air capture and the removal of CO2. Notably, it operates the world’s first and largest direct air capture and storage facility, firmly establishing its reputation and expertise. The company’s impressive customer base, including prominent organizations such as Microsoft, BCG, Swiss Re, Shopify, UBS, Stripe, Zendesk, JP Morgan Chase & Co, and Accenture, among others, serves as a resounding endorsement of the platform’s credibility. With an ambitious plan to undertake multiple large-scale Direct Air Capture projects in the coming years, Climeworks is making a significant push into the US market by expanding its workforce with the recruitment of over a hundred employees. Notably, Partners Group, a leading global private equity firm, has entered into a 13-year agreement with Climeworks to remove over 7,000 metric tons of CO2 from the atmosphere on their behalf, with permanent underground storage. Climeworks’ growth strategy is underscored by its vision to scale up to megaton capacity by 2030 and gigaton ca- pacity by 2050 through its under-construction plant named Mammoth. Additionally, the company has secured a steady revenue stream through a 9-year carbon removal contract with PwC Switzerland, a 10-year carbon removal offtake agreement with Microsoft, a 10-year carbon removal agreement with BCG, and a 10-year carbon removal agreement with LGT, which involves the permanent removal of 9,000 tons of CO2 from the air. In a groundbreaking commitment, Swiss Reinsurance Company Ltd has signed the world’s first and largest 10- year carbon removal purchased at $10 million, further solidifying the credibility and effectiveness of Climeworks’ business model.


  • Founded – 2019
  • Total Raised – $81.5 M
  • Last Round – $80M Series A

Verdox, a climate technology startup based in Massachusetts, deploys an innovative electric system to streamline the process of carbon capture and storage. With a mission to transform scalable, cost-effective carbon capture and removal from a concept into a reality, the startup leverages its Electroswing Adsorption (ESA) platform technology, originally incubated at Massachusetts Institute of Technology (MIT). This technology excels at removing carbon dioxide from both industrial emissions and the atmosphere, boasting an impressive 70% energy savings compared to conventional methods. Notably, it eliminates the reliance on vast quantities of heat and water, a com- mon drawback in existing carbon dioxide removal solutions. Dr. Brian Baynes, a seasoned serial entrepreneur with a history of successful co-founding Verdox. Notably, Verdox’s operational excellence was recognized the company secured the $1 million XPRIZE Carbon Removal Award.

Carbon Clean

  • Founded – 2009
  • Total Raised – $187.13 M
  • Last Round – $150M Series C

Carbon Clean, a climate technology startup headquartered in England, specializes in the development of carbon dioxide separation tech- nology tailored for industrial and gas-treating applications. As of July 2023, this company has successfully eliminated 1.9 million metric tons of carbon emissions across 49 global facilities, exemplifying its technological expertise. Carbon Clean made waves in the industry by launching CycloneCC, an industrial carbon capture technology heralded as the world’s smallest, highlighting the company’s technological prowess. In addition, Carbon Clean secured strategic partnerships with globally renowned industrial players such as Veolia, CEMEX, and Chevron, underscoring the credibility of the business model. The company’s collaboration with the Acorn Project, one of the most ad- vanced carbon capture, storage, and hydrogen initiatives in the UK, reinforces the credibility of its robust business model. In 2023, Carbon Clean solidified its market position by forging a strategic joint development agreement with Samsung Engineering. This collaboration is geared towards the exploration of opportunities in Onboard Carbon Capture Solutions (OCCS) projects. The focus of this agreement will center on optimizing Carbon Clean’s modular carbon capture innovation, CycloneCC, for application on ships, thereby addressing carbon emissions in the maritime industry. Furthermore, in 2022, the prestigious NTPC Energy Technology Research Alliance (NETRA) selected. International Pvt. Ltd to establish a carbon capture plant at NTPC Vindhyachal, India. This re an impressive 20 tons of carbon dioxide daily.

Global Thermostat

  • Founded – 2010
  • Total Raised – $90.25 M
  • Last Round – $13M Angel

Global Thermostat, a climate tech startup headquartered in Colorado, specializes in the development and commercialization of tech- nology designed for the direct extraction of carbon dioxide from the Earth’s atmosphere. A strategic partnership with ICMG Co., Ltd., a distinguished player in climate change solutions, gave rise to the ‘Global Thermostat Japan’ joint venture, paving the way for new revenue streams and market expansion. In 2023, the startup introduced a Direct Air Capture facility, boasting a capacity exceeding 1,000 tons Global Thermostat as a recipient of tax credits under the US Inflation Reduction Act, thereby solidifying its rellence and financial viability.

Fervo Energy

  • Founded – 2017
  • Total Raised – $176.4 M
  • Last Round – $138M Series C
  • Valuation - $320.73 M

Fervo Energy, a Texas-based cleantech startup, offers continuous carbon-free energy with geothermal power solutions. In 2023, the company unveiled plans to craft a fully integrated geothermal and DAC facility. Bolstered by the Chan Zuckerberg Initiative, Fervo Energy inherent synergy between geothermal technology and DAC for a ology is poised to furnish essential carbon-free power and heat for DAC.


  • Founded – 2018
  • Valuation – $1,500 M

Prometheus, a California-based energy startup, is pioneering the development of a technology for the cost-effective extraction of atmo- spheric CO2, leveraging water, electricity, and nanotube membranes to yield commercially viable fuel sources. The robust financial back- ing from renowned entities such as Y Combinator, Maersk Growth, and BMW i Ventures exemplifies the platform’s substantial credibility. In a resounding endorsement of Prometheus’s innovation, the Biden administration has strategically integrated Prometheus as one of the companies in its agenda to phase out conventional fossil jet fuels and render the aviation industry carbon neutral by 2050. This integra- tion not only reinforces the startup’s potential but also signals a promising and stable revenue stream in the years to come. Furthermore, a strategic partnership with American Airlines, involving the purchase of 10 million gallons of Prometheus’s fuel, solidifies the startup's a post-Series B valuation of $1.5 billion achieved in September 2021, Prometheus ng the first unicorn in the emerging electro fuel sector.

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About the Analyst

Santosh Rao has over 25 years of experience in equity research with a primary focus on the technology and telecom sectors. He started his equity research career at Prudential Securities and later moved to Dresdner Kleinwort Wasserstein, Gleacher & Co, and Evercore Partners, where he followed Telecom and Data Services. Prior to joining Manhattan Venture Partners, he was the Managing Director and Head of Research at Greencrest Capital, focusing on private market TMT research. Santosh has an undergraduate degree in Accounting and Economics, and an MBA in Finance from Rutgers Graduate Business School. While at Gleacher & Co he was ranked leading telecom equipment analyst by Starmine/Financial Times


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