Another company bets big on carbon-capture tech

Teamwork makes the dream work—at least, that’s the hope for Boston Consulting Group’s new green-tech partnership with Climeworks.

BCG will purchase the firm’s carbon-capture services over a 15-year period, the companies announced last week, while BCG will provide consulting services for the Swiss business. The agreement covers 80,000 metric tons of CO2 and is the largest corporate deal in Climeworks’ history.

The transaction is a major bet on the future of carbon-capture technology, Climeworks Chief Commercial Officer Jan Huckfeldt said in a statement.

“Long-term commitments defined the success of the solar energy transition and will undoubtedly become more frequent in our industry. It sets a precedent for other climate leaders understanding that carbon removal is a necessity and securing their share of supply early in this future trillion-dollar market,” he said.

The companies did not put a price tag on the deal, but Reuters estimated it could be worth $64 million, if it follows the contours of Climeworks’ recent sale of credits to JPMorgan Chase for about $800 per ton.

As Tech Brew previously reported, BCG joins other companies making blockbuster investments in the nascent industry surrounding carbon removal and capture, even though the tech behind it remains somewhat experimental. Microsoft bought into Heirloom Carbon earlier this year, the Wall Street Journal reported, pouring an estimated $200 million into the company’s emerging crushed-limestone carbon-capture technology. The software giant is also a Climeworks client.

According to a 2022 BloombergNEF report, direct air capture tech hasn’t impacted overall carbon emissions much yet, but its capacity could increase sixfold by 2030 as companies and investors spend big on its development.

Private industry’s investment parallels a robust government interest in reducing atmospheric greenhouse gases, which contribute to global warming. Two years ago, the Department of Energy unveiled a research effort to make carbon removal services cheaper—below $100 a metric ton by 2030—the price at which experts believe the tech will become commercially viable.