Heirloom Carbon Technologies was founded in 2020 in San Francisco and is operating America’s first commercial Direct Air Capture (DAC) facility. The facility is located in Tracy, California and is one of only 18 DAC facilities operated globally, collectively capturing 10,000 tons of CO₂ a year[1].

Most companies are unable to completely eliminate their full carbon footprint when the effects of both up and downstream activities are considered. Therefore, Carbon Dioxide Removal (CDR) can be an important tool for building climate resilience. The DAC technology emerges as a notably promising method for CDR as it actively extracts CO₂ from the atmosphere without the uncertainty of additionality often causing concerns for other CDR initiatives.

DAC can either enable the permanent storage of CO₂, actual CDR, or repurpose the captured CO₂ for other innovative uses, such as reinforced concrete and eFuels. An example of such an eFuel could be eMethanol potentially used for large container ships as a green alternative to marine diesel and as such DAC can serve as a vital contributor to the decarbonization efforts of other industries, notably shipping.

A significant challenge that lies ahead for DAC-based companies is demonstrating the scalability of the technology in a cost-effective manner. Heirloom seeks to address this challenge by accelerating the natural process of carbon mineralization, capturing CO₂ using limestone, one of the most abundant rocks on the planet[3]. Carbon mineralization describes the process whereby CO₂ from the atmosphere binds to minerals and permanently transforms into rock – a process normally occurring over geological timescales but accelerated into just days by Heirloom’s technology[4].

Heirloom’s technology is expected to bring down the cost to $100 per ton CO₂ by 2035[4]. This price is double the cost of existing ‘natural’ solutions for CO2 absorption and storage, such as forestation and soil carbon sequestration, making the technological advancements critical in ensuring DAC as a viable part of resilient climate strategies[5].

Heirloom customers include Microsoft, Stripe, Meta, H&M Group, and many more. Microsoft has signed one of the largest permanent CO2 removal deals to-date[6]. The deal commits to the purchase of 315,000 metric tons of CO2 removal over a multi-year period from Heirloom, corresponding to 31.5x the total yearly capturing happening today[6]. Deals like these are essential for expanding DAC CDR, signaling significant demand critical for building a market for high-quality CDR and providing predictable and durable cash flows needed for opening more facilities[6].

It is incredibly encouraging to see agreements of this magnitude because corporate buyers, like Microsoft, can unlock a significantly lower cost of capital for Direct Air Capture companies that are seeking to finance infrastructure projects, such as future Carbon Dioxide Removal facilities.

Robert Keepers

Managing Director at J.P. Morgan Green Economy Banking

Hence, Heirloom is one of more promising DAC companies landing significant deals and operating commercial facilities. However, the timing, prioritization and funding of CDR versus emission reduction is spurring debates on the one hand while on the other hand the overall all long term climate science is clear. We must do both CDR and massive emissions reductions to stay within the 1.5°C global warming path according to the IPCC. So, DAC could very well be an important tool for companies’ climate resilience strategy going forward and for them to achieve their net zero goals.

[1]Reuters: “Fossil-Fuel Industry Embrace Raises Alarm Bells Over Direct Air Capture”, 2023

[2]Carbon Offset Guide part of the Carbon Offset Research and Education program: “Additionality”, n.d.

[3]Heirloom: ”Restoring Balance to Our Atmosphere”, n.d.

[4]Earth.org: "America’s First Direct Air Capture Facility Opens in California”, 2024

[5]ClimateNow: “Carbon Dioxide Removal”, 2021

[6]Heirloom: ”Heirloom and Microsoft Sign One of the Largest Permanent CO2 Removal Deals To-Date”, 2023