Phlair, a company developing a direct air capture (DAC) system to remove carbon dioxide from the atmosphere, has raised €14.5 million (~$16.1 million) in a seed round.
The funding will support the expansion of its operations and further innovation of its DAC technology.
DAC systems are crucial for achieving significant carbon dioxide removal (CDR) on a global scale, as outlined in climate change mitigation scenarios.
Phlair‘s innovative DAC system utilizes off-the-shelf components and is powered by electricity, enabling rapid scalability and high durability. The captured carbon dioxide can be stored or used for manufacturing CO2-negative chemicals.
Phlair plans to use the funding to bring its DAC plants online in 2025 and supply systems to early customers such as Shopify, Stripe, Klarna, and Deep Sky.
The company aims to develop two 260-ton-per-year pilot plants and a larger commercial plant capable of capturing over 20,000 tons of carbon dioxide annually by 2026.
Relevant: Phlair Unveils New Direct Air Capture Plant In Rotterdam
Phlair’s founder and CEO, Malte Feucht, emphasized the company’s focus on mass manufacturing and cost reduction: “Our DAC system is purposefully designed for mass manufacturing.”
“Combining our manufacturability with rapid execution, we are able to start addressing the world’s urgent need for scalable DAC solutions and deliver meaningful volumes. All of this while driving costs down toward our long-term goal of sub $100/tCO2, putting us in a great position to lead this industry.”
The financing round was led by Extantia Capital, with participation from Planet A, Verve Ventures, and others.
Relevant: AirMiners Selected 20 Teams For The Kiloton Fund And Shopify Offered Further Support
The company’s progress and potential have attracted significant investor interest, as evidenced by the oversubscribed funding round.
Torben Schreiter of Extantia Capital highlighted Phlair’s exceptional position in the DAC market: “We are convinced Phlair is uniquely positioned to lead the third wave of DAC companies (DAC 3.0), as they place emphasis not just on price but also on manufacturability. The team is nothing short of outstanding, and we are impressed by their speed of execution.”
