The conversation around Direct Air Capture (DAC) and its role in addressing climate change is active and important. Like any evolving technology, DAC faces questions and scrutiny, which we see as vital for continuous improvement across the industry. We believe it's a good moment to share our perspective on some key topics and reaffirm our commitment to developing robust and effective DAC solutions.

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DAC: A Necessary Tool in the Climate Toolbox

To be clear, DAC is not a silver bullet for climate change. The primary focus must always be on rapidly reducing emissions across all sectors. However, the scientific consensus is that emissions reductions alone won't be enough to meet our climate goals. The Intergovernmental Panel on Climate Change (IPCC) in its Sixth Assessment Report states: “The deployment of carbon dioxide removal (CDR) to counterbalance hard-to-abate residual emissions is unavoidable if net zero CO₂ or GHG emissions are to be achieved” (IPCC AR6 WGIII, SPM.D.1.1). This means that alongside aggressive decarbonization, we need technologies that can remove existing CO₂ from the atmosphere for a long time.

The International Energy Agency (IEA) echoes this, highlighting in their "Direct Air Capture 2022" report that DAC plays an "important and growing role in net zero pathways" and that "achieving net-zero will be virtually impossible without CCUS [Carbon Capture, Utilization and Storage]" which includes DAC. (Source: IEA, Direct Air Capture, 2022). DAC is a vital component in the broader strategy, particularly for tackling emissions from sectors like heavy industry and long-distance transport, and ultimately, for addressing historical emissions.

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The Path to Energy-Efficient DAC

A key question for DAC is its energy consumption and overall environmental footprint. We are committed to ensuring our technology is not only effective but also as energy-efficient and environmentally sound as possible.

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Our Approach to Life Cycle Assessment (LCA)

Understanding the full impact of our technology is paramount. We have developed a methodology for performing Life Cycle Assessments (LCAs) on our products that aligns with current best practices, including ISO standards (like ISO 14040/14044) and the International Life Cycle Data System (ILCD) handbook guidelines. Our system boundary for these assessments is "cradle-to-gate," encompassing all processes from the construction of the DAC unit and its auxiliaries, the energy supply and materials used during operation, to the recycling and disposal of all materials after its lifetime. This initial assessment provides a snapshot, but it's crucial to understand that our technology and operational practices are on a continuous improvement roadmap designed to drive significant future enhancements in efficiency and net carbon removal.

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Optimizing Energy Use

The energy source for DAC is critical. DAC technology works best when it can tap into ideal energy circumstances. This includes proximity to geothermal energy, leveraging industrial waste heat and integrating with renewable electricity sources like wind and solar, especially when there's an imbalance between generation and demand. Using this "excess" renewable energy, which might otherwise be curtailed or lead to negative pricing, is an excellent way to power CO₂ removal. Our focus is on powering DAC with renewable energy that does not compete with essential needs of industries or communities. This could involve using curtailed renewables or even dedicated renewable energy sources.

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Our Energy Efficiency Roadmap

We have a multi-pronged strategy to continuously improve the energy efficiency of our DAC systems:

1. Sorbent Development: Our research and development in sorbent technology is a cornerstone of our efficiency drive. We are working on next-generation sorbents that increase CO₂ capture capacity per unit of material. This directly translates to less energy needed per tonne of CO₂ captured. Furthermore, we are focused on reducing the water absorption of our sorbents, as less co-absorbed water means less energy is wasted during the desorption (CO₂ release) phase.
2. Smart Integration: We design our systems for smart integration with existing energy infrastructure. This means utilizing thermal energy from sources like industrial waste heat, geothermal energy, or efficient electric boilers. When thermal energy is already carbon-accounted for in its generation process (e.g., waste heat from an industrial facility) it significantly reduces the additional electricity burden for the DAC process.
3. Machine Efficiency: Through ongoing engineering iterations and design improvements, we are consistently enhancing the mechanical efficiency of our units, reducing loads and optimizing airflow.

To illustrate how these strategies translate into real-world performance, let's consider a couple of examples:

Scenario 1 - utilization in a Dutch greenhouse: A Dutch greenhouse utilizes our Stratus units on-site for carbon utilization to enhance crop growth. By primarily using low-temperature waste heat available from their operations and sourcing their electricity from 100% local wind energy, this setup achieves an impressive energy efficiency of 1.45 kWh per kg of CO₂ captured. The resulting LCA for the CO₂ supplied shows a 94% efficiency in terms of net carbon impact, meaning 94% of the captured CO₂ is a net avoidance after accounting for all emissions.

Scenario 2 - large-scale removal: A large-scale DAC park project designed for permanent carbon removal that uses renewable energy. This direct and dedicated renewable power source allows the park to operate with an energy efficiency of 2.64 kWh per captured kg of CO₂. The overall LCA for this carbon removal project demonstrates a 95% efficiency.

These examples highlight how combining our technology with smart energy integration and dedicated renewable sources can lead to highly efficient DAC operations today.

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Considering All Technological Pathways

The DAC field is exploring various capture mechanisms, including electrochemical processes. We believe in championing the best solutions for widespread, effective deployment which is why we are exploring alternative pathways while advancing our Temperature-Vacuum Swing (TVS) DAC systems. Currently, while promising in theory, electrochemical DAC faces challenges: there isn't yet conclusive evidence from scaled deployments that it is inherently more energy efficient or cost-effective than mature TVS systems, the supply chains for some critical components are not yet established at scale, and some approaches may have limitations in colder climates. However, we are actively monitoring and conducting our own research into electrochemical methods as part of our technology hedging strategy to ensure we remain at the forefront of DAC innovation. So far solid sorbent has shown the most promising improvement pathways as the thermal attributes can be changed by the chemical industry, leading to sharp reductions of energy used for the capture and release process. We are working with Purolite and other chemical companies to co-develop the sorbents of the future.

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A Solid Foundation: Our Business Model

Carbon capture technology needs a sustainable business model to support its growth and impact. Our approach is built on several key pillars:

• Specialized Technology Provider: We focus on what we do best: developing and manufacturing cutting-edge DAC technology. We are not project developers or primarily sellers of carbon credits. We provide the core tools for others to execute carbon removal or utilization projects.
• Standardized, Modular Deployment: Our deployment strategy centers on standardized, factory-manufactured DAC machines that can be configured into "DAC parks" of varying sizes. This contrasts with building large, custom, one-off plants. This modular approach leads to significantly faster deployment timelines, accelerates learning cycles through frequent iterative improvements, and requires lower initial financial investment for each project.
• Stable and Diverse Financing: Our financial strategy is designed for long-term stability and growth, relying on a diversified funding base rather than being dependent on specific short-term government grants or programs.
• Diverse Revenue Streams: Our primary revenue comes from selling our DAC units. This provides a clear, tangible value proposition to our customers. We support projects across the spectrum, whether they are focused on supplying CO₂ for greenhouses, on permanent geological storage of CO₂ (CDR) or on utilizing the captured CO₂ as a feedstock for products like sustainable fuels and building materials. This versatility opens up a wider range of applications and markets and allows us to generate revenue from smaller projects, while the large projects take their time to materialize.

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The DAC Industry: Maturing Over Time

It's important to remember that the DAC industry is still in its relatively early stages of maturation. Like many innovative technologies before it, it requires time to scale, optimize, and reduce costs. In the recently published article by the DAC Coalition they explain why DAC deserves the same long view.

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Lessons from the Solar Panel Industry

A useful parallel can be drawn with the solar photovoltaic (PV) industry. In its early days, solar PV was expensive and its deployment limited. However, through sustained research and development, manufacturing advancements, supportive policies, and economies of scale, the cost of solar panels has plummeted dramatically over the past few decades, over 90% reduction in costs, making it a mainstream energy source. (For example, data from the IEA or NREL often illustrates these cost reduction curves for solar PV.) The "Solar Energy Technologies Office" of the U.S. Department of Energy has documented much of this journey (Source: energy.gov/eere/solar). We anticipate a similar trajectory for DAC as the industry matures, with ongoing innovation driving down costs and improving efficiency.

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Evolution Towards Specialization

Another hallmark of maturing industries is the evolution from early pioneers attempting to cover the entire value chain to a landscape of more specialized companies. In the initial phases of a new technology, companies often need to take on several ecosystem roles. As the industry grows, specialized suppliers emerge, ecosystems develop, and companies can focus on their core competencies. This specialization drives efficiency, innovation, and cost reduction. We are seeing this trend begin in the DAC space and believe our focus as a specialized technology provider aligns with this natural maturation process.

The journey to make DAC a globally significant climate solution is a marathon, not a sprint. It requires patience, continued investment in research and development, collaboration across the industry, and supportive, stable policy frameworks. We are excited by the progress being made and are dedicated to advancing DAC technology to play its crucial role in achieving a net-zero future.

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