Introduction
As the climate crisis deepens, reducing greenhouse gas emissions is only part of the solution; removing or repurposing CO₂ has become equally important. Many startups around the world are confronting this challenge by turning CO₂ into something useful — fuels, building materials, chemicals — or by capturing it and storing it permanently. These efforts not only help reduce net emissions but also create commercial value and new business models. This report explores several of these startups, their technologies, challenges, and what their future looks like.
Notable Startups & Their Technologies
Below are examples of startups / emerging companies that are doing exciting work with CO₂, especially in utilization and removal.
Startup What They Do Key Technology / Process Noteworthy Achievements / Status
Dioxycle Converts recycled CO₂, water and renewable energy into ethylene, a foundational building block for plastics and other materials. Uses electrolyzers that take in CO₂ + water + electricity to yield ethylene. Raised US$17 million in a Series A. Moved from lab trials to a.
Prometheus Fuels Produces carbon-neutral fuels — gasoline, jet fuel — by filtering CO₂ from air, using water and renewable electricity. Their process involves capturing atmospheric CO₂ with membranes / filters, combining with hydrogen etc., powered by renewables. Recognized as a leader in e-fuels; has gotten investment through Y Combinator etc.
Greenlyte Carbon Technologies (GCT) Low-energy direct air capture (DAC) that produces not just the captured CO₂ but green hydrogen as a byproduct. Their process uses a liquid sorbent to absorb CO₂, then via precipitation and electrolysis recovers CO₂; electrolysis also yields hydrogen. Lower energy demands relative to many DAC systems. Runs pilot plants; targeting lower cost per ton of CO₂ removal (around US$80/ton claimed) vs much higher costs of many existing DAC methods. First‐of‐a‐kind facility planned (e-Methanol production) by late 2026.
Charm Industrial Uses biomass (crop residues) to produce bio-oil via pyrolysis; this bio-oil is then injected into geological formations for long-term carbon storage. In effect, it’s carbon removal plus storage. Hydrolosis / pyrolysis of agricultural residues; uses underground wells for storage. Has contracts (e.g. from Google) for large-scale carbon removal; large funding rounds; scaled ambitions.
Octavia Carbon Based in Kenya; they are working on DAC units that use Kenya’s abundant renewable energy (especially geothermal) and local geological conditions (basalt formations) for both capture and permanent storage via mineralization. Their modular DAC units (“Lenana”) are designed to capture CO₂ and inject it into basalt where it mineralizes — turning into stable carbonate minerals. Use of geothermal/waste heat to reduce energy costs. Raised funding (~US$5 million seed in 2024); among the more promising lower-cost DAC + geological storage models.
CREW Carbon Employs a natural/mineral strategy: using carbonate rocks and water to accelerate processes that normally take thousands of years (e.g. rock weathering), so that CO₂ can be removed more quickly. Also focuses on measurement, reporting, verification (MRV). Natural “carbon removal using minerals” + MRV technologies to ensure the permanence / accountability. Still early; these natural approaches are promising for scalability if the economics work out.
Fortera Works with concrete / cement industries. They capture CO₂ from cement production and use it to form a reactive carbonate mineral (vaterite) that can be incorporated into building materials—thus re-using CO₂ in a durable way. Mineralization process designed to generate calcium carbonate / vaterite from emissions + lime; aims to produce building materials with CO₂ content. Already installed in a cement plant in California; scaling is underway.
Why This Matters: Benefits & Opportunities
Emissions mitigation beyond reductions: Even with aggressive cuts, some emissions are “hard to abate” (industrial processes, heavy transport, etc.). These technologies help address what remains.
Economic value creation: CO₂ becomes feedstock — ethylene, fuels, plastics, building materials. That opens up new revenue streams, helps offset capture costs.
Local advantages: Some startups are leveraging local geography (basalt formations for mineralization, geothermal heat, etc.). This can lower energy and transport costs.
Job creation and new sectors: Clean-tech deployment, construction of DAC plants, upgrading industrial processes, etc., all generate jobs.
Challenges & Constraints
While the progress is promising, there are significant hurdles:
- Cost & Energy Intensity
Many CO₂ capture processes require high energy inputs, whether for regenerating sorbents, electrolysis, heating for desorption, etc. Until renewable energy is cheap and abundant, the cost per ton of CO₂ removed or utilized remains high. - Scaling
Lab and pilot-scale successes are easier; scaling to industrial levels (millions of tons/year) brings engineering, logistical, regulatory, and financial challenges. - Permanence
For materials or fuels, CO₂ is eventually released again when they degrade or are combusted. Only mineralization or geological storage offers permanent sequestration. That shifts how “valuable” CO₂ conversion is in climate terms. - Market & Demand
Even if you convert CO₂ into something useful (plastics, fuels, building blocks), there must be a market that accepts these new materials at competitive prices. - Environmental trade-offs
For instance, water use, land use, potential chemical inputs, life cycle emissions in the capture + conversion process itself. The full environmental accounting must ensure net benefit. - Policy, regulation, & incentives
Carbon pricing, subsidies or credits for carbon removal/utilization, regulation of emissions, verifying claims, etc., are crucial. Without supportive policy, many of these business models struggle.
Future Outlook
Cost reduction will be key: As more renewable energy is deployed, and as technologies mature (better sorbents, catalysts, engineering improvements), the cost per ton CO₂ removed or utilized will fall. Some startups already aim at ~$80/ton, which is much lower than many current DAC projects.
Hybrid models: Combining capture + utilization + storage, or integrating into existing industrial processes (cement plants, exhaust streams, etc.) will often be more efficient and cost-effective.
Regional specialisation: Regions with renewable energy, suitable geology (for storage or mineralization), supportive policy, etc., will become hubs. Africa (Kenya, etc.), parts of Europe, North America, etc., are already seeing this.
Regulatory clarity and carbon accounting: As governments push net zero targets, clear frameworks for credits, permanence, measurement will help these startups scale.
Innovation in materials and processes: Better catalysts, more efficient electrolysis, lower energy DAC, cheaper mineralization, biotechnological routes (e.g. microbes, algae) will all play a role.
Conclusion
The growing array of startups converting CO₂ into valuable resources—or capturing it permanently—is a hopeful sign in the fight against climate change. While challenges remain, especially in scaling, cost, and ensuring true climate benefit, the combination of technological innovation, economic incentives, and supportive policy could make CO₂ utilization and removal a major pillar of climate strategy.
In essence, these startups are not just trying to clean up emissions; they’re trying to build a carbon economy — where CO₂ is a raw material, not just pollution. If that can be done well, it could help close the gap between current emissions trajectories and what’s needed to stabilise the climate.