Published by Todd Bush on November 27, 2025
Technologically advanced 1,000-tonne per year system in Canada will soon achieve costs below $500 per tonne, a significant reduction for DAC
UK-based Airhive has started operations at a direct air capture (DAC) facility that demonstrates its lower-cost technology at commercial scale, opening a new route for DAC to prove its value in the fight against climate change.
The company is now capturing carbon dioxide directly from the atmosphere with its system in Alberta, Canada. Now in operational ramp-up, the system uses a novel DAC method based on fluidised beds, a proven industrial technology. The speed and efficiency of this fluidisation-based capture method, combined with its recovery and reuse of heat within the system, is helping Airhive dramatically lower costs.
>> In Other News: Canada and Alberta Strike New Partnership to Lower Emissions, Unlock Our Natural Resources, and Build a Stronger, More Sustainable, and More Competitive Economy
Prices of DAC credits from built and operating DAC facilities — of which there are very few — have remained high at around $1,000 per tonne. The cost of CO2 captured from Airhive’s system will be below $500 per tonne, net of lifecycle emissions and excluding transportation and storage, once operational ramp-up is complete in 2026.
The company has a clear path to lower costs even further as it scales and optimises its technology.
Rory Brown, founder and CEO of Airhive: “High costs and operational delays have unfairly clouded the case for direct air capture, which remains a crucial way to permanently remove CO2 from the atmosphere at scale. Today we are showing that DAC can be delivered not just quickly and at meaningful scales, but also at a cost that advances the sector towards commercial viability.”
Airhive founders
Airhive’s 1,000-tonne-per-year system will be one of the largest operational DAC systems in the world and the largest operated by a UK company.
It is part of Deep Sky Alpha, a cross-technology DAC hub in Innisfail, Alberta. Airhive is one of several developers building out different DAC technologies at Deep Sky Alpha, which shares transportation and storage infrastructure. The Deep Sky facility recently sequestered its first volumes of CO2. As it ramps up to its operational capacity, Airhive’s system will now help accelerate Deep Sky Alpha, which has become one of the world’s most important DAC facilities.
Airhive is also rolling out its DAC technology through projects in the UK, Europe, and Canada. One of these is with Coca-Cola Europacific Partners, which will embed a 1,000-tonne-per-year DAC unit within a Coca-Cola bottling plant. Drinks will be made fizzy through direct-air-capture-derived bubbles of CO2. Encouraged by Canada’s tax incentives supporting carbon removal, Airhive plans to build a larger facility in Alberta that will capture CO2 and supply carbon credits to companies with net-zero targets.
Airhive’s progress in delivering DAC at commercial scale has been backed by leading climate investors and corporates.
Carbon credits from DAC are some of the most expensive, but also the most sought-after, credits in the carbon market.
Bought by companies including Microsoft and JPMorgan, they trade at a premium because direct air capture is both verifiable and permanent: the amount of carbon removed from the atmosphere is precisely measurable within the closed system of DAC, and once the captured CO2 is sequestered underground it stays there for 10,000 or more years.
DAC credits are in short supply. Few plants are operating today, reflecting the technological challenges of building the first wave of DAC systems at commercially viable costs. High build and operating costs from the first wave of facilities have kept prices around $1,000 per tonne, based on market data, despite DAC developers signing future carbon-credit supply contracts at prices ranging from the low $100s to over $1,000.
Airhive is a leader in the second wave of producers expected to expand supply — and lower prices — through 2030. STRATOS, by far the world’s largest DAC plant, is nearing completion in the US.
Scientists at the Intergovernmental Panel on Climate Change (IPCC) have concluded that carbon removal will play an “indispensable” role in helping the world reach net zero greenhouse gas emissions by 2050. With many approaches still being developed, however, the amount of carbon removed from the atmosphere in recent years is a tiny fraction of the 8–10 billion tonnes that the IPCC indicates will be required annually by mid-century.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🌱 Indigo to Sell 2.85 Million Tonnes of Carbon Removal to Microsoft, Supporting Soil Health Through Regenerative Agriculture 🏛️ Legislation Would Give Parishes Control Over Carbo...
Inside This Issue 🏗️ This $475M Indiana Plant Turns Petcoke Into Clean Fuel 🏛️ Buckeye Gives Final Support to Rezone Nikola Property for Hydrogen Huba 🧪 CHARBONE Secures its First Order for Clean ...
Inside This Issue ⚡️ Florida Just Made Hydrogen History With This First 🏗️ KBR Awarded FEED for Coastal Bend LNG Project 🌱 Grassroots Carbon Becomes First U.S. Company to Deliver 1.9 Million Tons ...
HOUSTON--Phillips 66 (NYSE: PSX) and Kinder Morgan, Inc. (NYSE: KMI) today announced the launch of the second open season for the Western Gateway Pipeline (Western Gateway), a newly proposed refine...
Gevo, Inc. (NASDAQ: GEVO), a leader in renewable fuels and chemicals, as well as carbon management, today announced that it has been awarded U.S. Patent No. 12,486,207 B2 from the United States Pat...
Court Says Trump Admin Illegally Blocked Billions in Clean Energy Grants to Democratic States
A federal judge has ruled that the Trump administration acted illegally when it canceled $7.6 billion in clean energy grants for projects in states that voted for Democrat Kamala Harris in the 2024...
Varaha Signs Carbon Removal Agreement With Microsoft
Agreement Calls for Over 100,000 tonnes of Carbon Dioxide Removal (CDR) across 3 Years GURUGRAM, India, Jan. 15, 2026 /PRNewswire/ -- Varaha, a leading developer of carbon dioxide removal (CDR) pr...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.