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Carbon capture firm runs into problems

Friday, 16 May 2025 06:30

(c) Climeworks

A combination of US government cuts in green technology and teething problems in Iceland is causing problems for the Swiss start-up which has ambitious aims to remove carbon from the atmosphere.

Climeworks has raised hundreds of millions in funding. 

It did have major plans in the US, with a plant in Louisiana and a further contract with the US Department of Energy, but now those are on hold. 

In addition, a plant in Iceland is performing well under expectations. But Climeworks says that’s down to ice and snow causing some equipment to freeze. It’s confident it can fix the issues. 

But it plans to lay off around 10% of its 500 strong workforce.

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