Heirloom secures $150 million funding to enhance carbon removal technology

Carbon removal technology provider Heirloom has announced the successful completion of a $150 million Series B funding round aimed at accelerating the commercial scaling of its Direct Air Capture (DAC) technology. The funding is vital as DAC technologies are increasingly recognised by the International Energy Agency (IEA) as essential for achieving net-zero energy systems. According to a climate change mitigation study by the Intergovernmental Panel on Climate Change (IPCC), strategies to limit global warming to 1.5°C will require substantial scaling of carbon dioxide removal methods, with DAC projected to play a pivotal role in this effort.

Founded in 2020, Heirloom is based in California and has positioned itself at the forefront of DAC innovation. The company utilises limestone—one of the world's most abundant and cost-effective minerals—to capture CO2 directly from the atmosphere. The process begins with natural limestone, which contains nearly 50% CO2. By extracting this CO2 and combining it with water, Heirloom creates a material capable of absorbing more CO2 from the air within a significantly reduced timeframe. This efficient process allows for the subsequent extraction of absorbed CO2 using a renewable energy-powered kiln, after which the carbon is permanently stored underground.

Notable companies such as Microsoft, JP Morgan, McKinsey, Stripe, and Shopify are among Heirloom’s customers, underscoring the demand for carbon removal solutions in various sectors.

The recent funding round was co-led by Future Positive and Lowercarbon Capital, both of which had previously supported Heirloom's Series A financing. New investors joining the round include H&M Group, Japan Airlines, Mitsubishi Corporation, Mitsui & Co., MOL Switch LLC, Quantum Innovation Fund, and Siemens Financial Services. Together with existing investors such as Ahren Innovation Capital, Breakthrough Energy Ventures, Carbon Direct Capital, and MCJ Collective, Heirloom's investor base now spans multiple industry sectors that are typically challenging to decarbonise—such as automotive, shipping, aviation, and advanced manufacturing.

Shashank Samala, CEO of Heirloom, expressed gratitude for the support received and highlighted that the scalability of DAC technology is reliant on reducing costs. The company aims to develop the lowest-cost DAC solution through real-world deployments and technological advancements.

Adding to the discourse surrounding carbon removal, Hoesung Lee, the former chair of the IPCC, noted during a recent presentation at the Energy Intelligence Forum in London that there is a critical need for a multitude of carbon removal solutions, including DAC, if the world hopes to maintain global average temperature increases around 1.5°C. Lee emphasised the urgency, stating that "The 1.5°C rise in average temperatures is going to arrive in 10-15 years," given the persistent upward trends in annual carbon dioxide emissions.

As Heirloom moves forward with its projects—including participation in Project Cypress, a Department of Energy-backed DAC hub in Louisiana aiming to capture one million tons of CO2 annually while creating nearly 1,000 jobs—the implications of effective carbon removal technology continue to unfold, illustrating the significant role that innovation plays in combatting climate change.

Source: Noah Wire Services