Carbon removal technology has long been hailed as the key to combating global warming by capturing carbon from the atmosphere. Companies using machines to extract carbon dioxide once aimed for a cost of $100 per ton, but recent estimates suggest this goal may be out of reach.

Climeworks AG, a prominent player in the carbon removal industry, claims to have made a significant breakthrough in reducing the cost of extracting carbon from the air. The company asserts that its new technology could potentially cut the cost by up to 50%. While this development is promising, the current cost of carbon capture remains well above the industry’s target for widespread adoption.

Back in 2017, industry leaders expressed confidence in achieving the $100 per ton milestone. Christoph Gebald, co-Chief Executive Officer of Climeworks, and David Keith of Carbon Engineering Ltd. were among those who believed in reaching this ambitious goal. However, as inflation and real-world challenges come into play, the feasibility of hitting the $100 target has come into question.

Climeworks now projects that their new technology could bring the cost of carbon capture down to $250 to $350 per ton by 2030. Despite this optimistic outlook, the current cost stands at a much higher range, closer to $1,000 per ton. Buyers are currently paying an average of $715 per ton for carbon removal services utilizing direct air capture technology.

While the industry has made strides in advancing carbon removal technology, the reality of achieving the coveted $100 per ton benchmark seems increasingly unlikely. The industry may need to recalibrate its expectations as the cost of carbon capture remains a significant challenge.

As the world grapples with the urgent need to reduce greenhouse gas emissions, the future of carbon removal technology and its cost implications will continue to be a critical focus in the fight against climate change.