Spiritus, a direct air capture (DAC) climate technology company, has successfully completed a Series A funding round worth $30 million. The round was anchored by Aramco Ventures and joined by Khosla Ventures, Mitsubishi Heavy Industries America, and TDK Ventures. The capital will fund Spiritus to expand its carbon removal technology and help reduce industrial and energy emissions while preserving economic growth.
Addressing the Energy-AI Paradox
The increasing need for artificial intelligence (AI) and industrial growth is creating more demand for energy and infrastructure development. However, these processes are increasing carbon emissions as well. AI data centers will be major electricity consumers, whereas the construction sector remains one of the biggest contributors to emissions.
Spiritus wants to solve this problem by using cost-effective and scalable DAC technology. The company’s approach seeks to enable industrial and energy expansion while simultaneously reducing carbon footprints.
Expansion of Carbon Capture Facilities
With the new investment, Spiritus is accelerating the development of three major carbon removal projects. The New Mexico Pilot Facility will remove 1,000 tons of CO2, proving industrial-scale carbon capture with fast deployment in months.
The Orchard One facility in Wyoming will capture two megatons of CO2 annually, combining geological sequestration with a modular framework. Moreover, Spiritus is globalizing by partnering with Aramco to take DAC technology on a large scale globally, including Saudi Arabian deployments, further extending the international presence of carbon capture technologies.
Also read: Spiritus Launches First Direct Air Capture Pilot Facility in New Mexico
Cutting Costs to Scale Carbon Removal
Historically, high costs have constrained DAC technology, typically reaching up to $1,000 per ton of CO2 captured. Spiritus is attempting to get this down to about $100 per ton, making it economically feasible at scale for carbon removal.
Bruce Niven, Executive Managing Director of Strategic Venturing at Aramco Ventures,stated that while Direct Air Capture has significant potential in decarbonizing hard-to-abate sectors of the economy, it has previously been too costly to have a meaningful impact. He further mentioned that breakthrough approaches, such as those developed by Spiritus, are essential, and expressed excitement about partnering with the company to bring this important technology to market.
With the industry growing further, governments and companies seek alternatives that are conducive to economic growth and have carbon emissions in them. Spiritus’ DAC technology provides a platform to ensure that infrastructure and AI expansion can still be achieved with controlled carbon emissions and the protection of the environment.
