Climeworks to cut 10% of staff amid slowdown in cleantech confidence

SWISS direct air capture (DAC) startup Climeworks is cutting 106 jobs, including 78 in Switzerland, due to “macroeconomic uncertainty”.

The company, which began operation in 2021, has found the removal output of both its plants, Orca and its newest Mammoth facility, to be “below expectations”.

Climeworks is uncertain about the progress of its planned third plant in the US, with the company saying that international policy priorities, related to a lack of support from the US, have reduced confidence in the sector.

US president Donald Trump is pushing to dismantle the Inflation Reduction Act, a key piece of legislation which provides incentives for the development of carbon capture technologies.

Christoph Gebald and Jan Wurzbacher, CEOs of Climeworks, said in a statement: “In light of current macroeconomic uncertainty, shifting policy priorities where climate tech is seeing reduced momentum in some areas, and the pending clarity for our next plant in the US, Climeworks is proactively adapting its business plan to stay future-oriented.”

Below expectations

Climeworks’ Orca and Mammoth facility have the capacity to capture up to 4,000 t and 36,000 t of CO2 respectively. A report from Icelandic publication Heimildin found that Orca has only captured just under 1,000 t/y since it began operation in 2021, and Mammoth has only captured 750 t in the ten months since its launch.

A spokesperson from Climeworks said: “This figure is currently below our expectations due to ramp-up delays."

“These delays are the result of several factors: first, a mechanical issue was identified in the first batch of CO2 collectors, which we are now resolving; second, the delivery of our filter material was delayed.”

Scaleup goals

Despite the job losses, Climeworks remains optimistic about its scaleup journey, with several projects coming to fruition in recent months.

Its most recent breakthrough came from its large-scale testing of adsorbents which would double the CO2 capture capacity of its DAC technology while halving energy use.