Letter on carbon: Chasing down the cost of DAC
Innovation is moving at pace in the direct air capture sector, but will costs fall quickly enough to make it a mainstay of the voluntary carbon market?
Too expensive. That is the verdict on direct air capture (DAC) of sceptics, who struggle to see this energy-intensive technology achieving operating costs low enough to drive its deployment at scale, even with substantial state subsidies. Try telling that to the multiple startups, as well as larger players including US energy firm Occidental and Saudi Arabia’s Aramco, which are investing in DAC—not to mention the venture capitalists and tech giants backing the sector. They point to breakthroughs in areas such as the use of modular systems and new filter materials, as well as increasing scale and a focus on the cheapest sources of power, as factors that are starting to drive down costs signi
Also in this section
9 January 2026
A shift in perspective is needed on the carbon challenge, the success of which will determine the speed and extent of emissions cuts and how industries adapt to the new environment
2 January 2026
This year may be a defining one for carbon capture, utilisation and storage in the US, despite the institutional uncertainty
23 December 2025
Legislative reform in Germany sets the stage for commercial carbon capture and transport at a national level, while the UK has already seen financial close on major CCS clusters
15 December 2025
Net zero is not the problem for the UK’s power system. The real issue is with an outdated market design in desperate need of modernisation
