Direct air capture technology is moving from lab experiments to real-world operations. Companies like ExxonMobil and Deep Sky have launched continuous pilot facilities that capture CO2 directly from the atmosphere. With billions in federal funding and expanded tax incentives, North America is positioning itself to lead the carbon removal industry.
"DAC is the 'holy grail' of emissions technologies, but to be commercially viable, its cost needs to come down – by at least 50 percent from today's range of $600-$1,000 a ton."
Darren Woods, CEO, ExxonMobil
ExxonMobil launched its continuous pilot facility in Baytown, Texas in February 2024. The project has operated successfully through extreme weather, from near-freezing temperatures to scorching Texas summers. The system uses proprietary filter technology to trap CO2 molecules from ambient air, moving from concept to operation in less than a year.
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In August 2025, Deep Sky opened Deep Sky Alpha in Innisfail, Alberta, achieving North America's first complete carbon removal cycle. The facility captures CO2 directly from the atmosphere and permanently stores it underground in geological formations. Deep Sky Alpha went from breaking ground to operational in just 12 months.
"This is exactly what Deep Sky Alpha was built for. A product of Sherbrooke University, Skyrenu's achievement shows that Canadian climate tech can lead on a global stage and that carbon removal is ready to scale today."
Alex Petre, CEO, Deep Sky
The facility tests multiple DAC technologies simultaneously from companies worldwide, including Quebec-based Skyrenu. Powered entirely by solar energy, Deep Sky Alpha will capture 3,000 tonnes of CO2 annually. The project generated over 110 construction jobs and employs approximately 15 full-time operators.
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The U.S. Department of Energy is deploying $1.8 billion through its Regional DAC Hubs program. The funding supports projects from mid-scale facilities capturing 2,000 to 25,000 tons of CO2 annually to large-scale commercial plants. In August 2023, DOE selected two hub locations in Louisiana and Texas, awarding $1.2 billion to support demonstration projects that will capture at least 1 million metric tons of CO2 annually when complete.
The expanded Section 45Q tax credit transformed project economics. The Inflation Reduction Act of 2022 increased the credit value for direct air capture to $180 per ton of CO2 permanently stored in geological formations, up from $50 per ton. Projects can claim credits for 12 years after beginning construction, with credit values adjusting for inflation starting in 2027.
Private capital is flowing alongside federal support. Deep Sky secured $40 million from Breakthrough Energy Catalyst and signed carbon removal credit purchase agreements with Microsoft and Royal Bank of Canada. This combination of public funding and private investment creates a robust financing ecosystem for scaling DAC technology.
State governments are emerging as critical supporters of DAC deployment. California leads with its Low-Carbon Fuel Standard, providing approximately $50 per ton of CO2 credit for DAC projects. States with strong clean energy resources and CO2 storage capacity, including California, New York, Washington, Louisiana, Texas, and Wyoming, are developing frameworks to support carbon removal infrastructure.
Alberta, Canada has become a North American leader in DAC deployment. The province offers abundant geological storage capacity in deep saline aquifers, access to renewable energy, and a regulatory framework designed to support carbon management projects. Alberta's skilled workforce from the energy sector provides the technical expertise needed for successful DAC operations.
More than 130 DAC facilities are in various stages of development globally, with North America home to many of the largest projects. The successful operation of pilot facilities proves the technology works in real-world conditions. As federal and state policies provide unprecedented support and corporate buyers commit to purchasing carbon removal credits, North America is building the foundation for gigatonne-scale carbon removal the world needs.
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