DAC’s bumpy road to commercial scale

Climeworks’ CFO Andreas Aepli on the challenges of scaling up DAC

An episode of the Catalyst with Shayle Kann podcast, hosted by Latitude Media, titled "DAC’s bumpy road to commercial scale" was published on October 3, 2024 and runs 40 minutes.

October 3, 2024 ·40m · Catalyst with Shayle Kann

0:00 / 0:00

Summary

The world’s first large-scale, commercial direct-air capture (DAC) plants are coming online – or are about to. How soon will we see a boom in high-quality, durable DAC supply? In this episode, Shayle talks to Andreas Aepli, chief financial officer of Climeworks, the world’s largest provider of DAC. They talk about Climeworks’ challenges with its two commercial plants – the kinds of challenges Andreas argues the industry needs to be transparent about in order to earn the trust of skeptical buyers. Shayle and Andreas also cover topics like: The real-world challenges of building a DAC plant, like extreme weather, supply-chain quality issues, CO2 purity, and more Why Andreas advocates a step-by-step scale-up of progressively larger deployments How to set pricing and and structure a carbon removal contract How to build a capital stack for a carbon removal plant Why Andreas believes the market will become even more supply-constrained in the next few years Recommended resources Latitude Media: Google says it's the first to purchase direct air capture for $100 per ton Latitude Media: Can a new generation of DAC companies overcome the tech’s big challenges? Latitude Media: Climeworks begins to offer “PPAs” for carbon removal Catalyst: Fixing the messy voluntary carbon market Catalyst is brought to you by EnergyHub. EnergyHub is working with more than 70 utilities across North America to help scale VPP programs to manage load growth, maximize the value of renewables, and deliver flexibility at every level of the grid. To learn more about their Edge DERMS platform and services, go to energyhub.com. Catalyst is brought to you by Kraken, the advanced operating system for energy. Kraken is helping utilities offer excellent customer service and develop innovative products and tariffs through the connection and optimization of smart home energy assets. Already licensed by major players across the globe, including Origin Energy, E.ON, and EDF, learn how Kraken can help you create a smarter, greener grid at kraken.tech. On December 3 in Washington, DC, Latitude Media is bringing together a range of experts for Transition-AI 2024, a one-day, in-person event addressing both sides of the AI-energy nexus: the challenges AI poses to the grid, and the opportunities. Our podcast listeners get a 10% discount on this year’s conference using the code LMPODS10. Register today here!