In the ongoing fight against climate change, innovative solutions are more critical than ever. One such approach, direct air capture (DAC), offers the promise of removing large amounts of carbon dioxide from the atmosphere. However, despite its scientific soundness, the commercial viability of DAC remains a major challenge. Phlair, a cutting-edge startup in this space, is determined to change that narrative with its new approach, which aims to lower the cost of DAC significantly.
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Carbon dioxide capture technology has long been discussed as a potential solution for climate change, but it has struggled with high costs. At present, capturing a metric ton of carbon dioxide costs between $600 and $1,000, a price point that is not economically viable for widespread adoption. Numerous startups are working to reduce this cost to around $100 per metric ton, a figure that might make DAC commercially feasible.
While direct air capture promises to mitigate the effects of over a century of fossil fuel use, the challenge remains in convincing the world to adopt this technology. Companies like Microsoft, Stripe, and Shopify are already investing in DAC, hoping to make it as common as wastewater treatment.
“Phlair’s carbon-sucking technology could lower direct air capture’s costs significantly,” said Malte Feucht, co-founder and CEO of Phlair.
Phlair’s strategy stands apart from other companies in the DAC industry. Unlike larger companies such as Climeworks and Carbon Engineering, which rely on heating sorbents to release the captured carbon dioxide, Phlair’s system uses a completely different technique. Rather than using thermal energy, which can be expensive and energy-intensive, Phlair developed a process that relies on an acid to liberate the carbon dioxide from the sorbent.
This innovative process is supported by a device Phlair calls a hydrolyzer. Borrowing technology from the hydrogen industry, the hydrolyzer takes elements from membrane-based electrolyzers and fuel cells to create acids and bases that drive the capture process.
“Instead of hydrogen, we only produce acids and bases,” Feucht explained. This unique design enables Phlair to avoid the costly thermal regeneration process that other companies rely on, potentially bringing down the overall cost of carbon capture.
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At the core of Phlair’s DAC machine is what’s known as the “pH swing” method. In this system, a basic solvent absorbs carbon dioxide as air is blown over it. Once the solvent becomes saturated, it is mixed with acid, which causes a chemical reaction that releases the carbon dioxide. The carbon dioxide is then collected and stored, while the solvent is regenerated for future use. This cyclical process allows for continuous carbon capture without the need for high temperatures.
Phlair’s approach is groundbreaking because it sidesteps one of the most energy-intensive aspects of DAC: thermal regeneration. By relying on a chemical reaction instead of heat, the company hopes to lower the cost of DAC significantly. “Thermal regeneration is always the expensive step, energy wise,” Feucht noted, emphasizing the potential savings Phlair’s process could bring to the industry.
Phlair is not content with small-scale success. The company is already planning larger projects that will help solidify its place in the carbon capture industry. In the coming weeks, Phlair will launch a pilot program capable of capturing 10 metric tons of carbon dioxide per year. But that’s just the beginning. By late 2025, Phlair plans to bring two much larger plants online, one in the Netherlands and one in Canada.
The Dutch project, developed in partnership with Paebble, will use the captured carbon dioxide to create a cement additive, providing a practical use for the gas. The Canadian project, built with Deep Sky, will focus on storing the carbon dioxide underground as part of a broader carbon removal initiative. These projects mark a significant step forward for Phlair, demonstrating its ability to scale its technology for real-world applications.##Funding and Future Prospects
To support these ambitious projects, Phlair recently raised €12 million in a seed funding round, led by Exantia Capital. Other participants in the round included Atlantic Labs, Counteract, Planet A, UnternehmerTUM Funding for Innovators, and Verve Ventures.
Additionally, Phlair secured a €2.5 million grant from the European Union’s EIC Accelerator, further bolstering its financial backing.
Phlair has also begun selling carbon credits to organizations that are eager to support carbon removal efforts.
Among its early buyers is Frontier, an initiative backed by major companies such as Alphabet, Meta, and Stripe.
This partnership underscores the growing interest in DAC technology and the belief that startups like Phlair will play a critical role in the future of climate action.
Phlair’s innovative approach to direct air capture could represent a major turning point in the fight against climate change. By significantly reducing the cost of DAC, the company is making it possible for carbon capture to become a practical solution for large-scale carbon removal.
As Feucht remarked, “I think this is a sort of a unique time in history. Ten years ago, you would have probably needed to found an NGO to do what we’re doing. Now, there’s a real opportunity to serve customers, to build a functioning company, but then also to address that [carbon] problem.”
With its technology poised to revolutionize the DAC industry, Phlair is a company to watch. Its plans for expansion, combined with strong financial backing and innovative technology, suggest that Phlair is on the path to becoming a leader in the global carbon capture market.
Phlair’s carbon-sucking technology could help usher in a new era of sustainable solutions, proving that addressing climate change can also be good business.
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