Swiss climate tech startup Climeworks, known for removing carbon directly from the atmosphere, is pushing ahead with international expansion plans—even as it grapples with layoffs and political hurdles in the United States.
Founded in 2009, Climeworks has become one of the most recognized names in direct air capture (DAC). The startup has raised $780 million to date and built its first commercial carbon removal plant, Orca, in Iceland. A second plant, Mammoth, is currently under construction. Together, they form the foundation of the company’s mission: to help scale carbon removal and combat global emissions.
But that path hasn’t been smooth. Over the weekend, reports surfaced that Climeworks is laying off around 10% of its workforce—nearly 50 jobs out of 498. The company didn’t confirm the exact number but acknowledged that consultations are underway. A spokesperson cited market volatility, shifting policy landscapes, and the technical difficulty of being a first mover in the DAC space as reasons for the current turbulence.
The Uncertain Future of US Support
Climeworks’ biggest challenges may lie across the Atlantic. In 2023, the company revealed plans to build its largest plant yet in Louisiana, backed by $50 million in promised funding from the US government. That figure was part of a potential $600 million in federal support under America’s DAC innovation push.
However, with the new Trump administration in place, that funding now appears to be in jeopardy. A leaked memo suggests the funding could be pulled. Climeworks says work on the Louisiana project continues for now, but any shift in financial support will force a reassessment. “If the future of the funding changes, we will need to re-evaluate the project at that time,” the company stated.
To reduce its reliance on a single country, the direct air capture startup is actively scouting additional locations. Climeworks is looking for countries with three key ingredients: cheap, clean energy; safe underground storage for CO₂; and a stable political environment that supports climate tech deployment. Canada, Saudi Arabia, Norway, and the UK are all being considered. In fact, Climeworks met with a UK government representative last year to discuss expansion plans.
Can Climeworks Scale Fast Enough?
The startup’s first plant, Orca, began operating in 2021 and was designed to remove up to 4,000 tonnes of CO₂ annually. Yet in 2023, it captured just 1,500 tonnes. Climeworks explained that the figure reflects reality, not failure. Think of the 4,000-tonne figure like a car’s top speed—it’s the max capacity under perfect conditions. In practice, maintenance and power availability affect how often the plant runs.
Last year, Orca operated about 65% of the time, largely due to scheduled maintenance on the geothermal energy system powering the plant. While these numbers might seem small compared to the 37.4 billion tonnes of global emissions reported in 2023, they represent the earliest stages of a technology many climate scientists say will be essential to meeting long-term climate goals.
Climeworks still believes in its roadmap. Despite layoffs and political headwinds, it’s betting on global diversification and new tech milestones to keep moving forward. And in a space where the challenges are massive, that resilience might be its most important asset.
