The idea of carbon removal once a distant concept discussed in climate circles has exploded into a global industrial race. At the heart of this revolution is Direct Air Capture (DAC), a technology that promises to pull CO₂ directly from the air and store it permanently underground. While the science behind DAC is relatively simple, the real challenges lie in scaling the technology, addressing the massive energy and cost requirements, and proving that it can deliver long-term, durable results.
In 2025, one of the most high-profile projects in this space is Occidental’s STRATOS initiative. Designed to capture up to 500,000 metric tons of CO₂ per year, STRATOS is setting the stage for commercial-scale DAC operations. Located in Texas, this project has already secured the necessary regulatory approvals for CO₂ sequestration the process of storing the captured carbon underground and is set to begin commercial operations later in the year. The STRATOS project stands as a symbol of how far DAC has come, transforming from an experimental technology to something that could have real-world impact.
However, as we move into 2025, the DAC debate has evolved significantly. What was once a question of “Can it work?” has shifted to deeper, more complex inquiries that touch on the economics, governance, and sustainability of these massive operations:
- Can it scale fast enough to make a difference?
- Can DAC be verified with reliable measurement and reporting?
- Will DAC be used to genuinely remove carbon, or will it be exploited as a way to justify further fossil fuel extraction?
The questions now focus not just on the technology but on its global applicability and how it integrates into climate policies. The International Energy Agency (IEA) has stepped in to track the progress of DAC projects globally, compiling data and creating tools and databases to help investors, policymakers, and the public distinguish between “announced projects” and those that are operational. This is vital because the field is filled with ambitious promises, but not all projects may deliver the necessary results. The ability to verify DAC’s impact and ensure its true effectiveness will determine whether it can play a key role in addressing the climate crisis.
The STRATOS project serves as an example of both the promise and the challenges of DAC. While the idea of capturing half a million metric tons of CO₂ annually is significant, it’s important to recognize that even this project’s output is a drop in the bucket compared to the billions of tons of CO₂ emitted every year. Scaling DAC to meet global climate targets will require hundreds of similar plants, each capable of capturing millions of tons of carbon annually. This brings us to the central economic question: Can we afford to scale DAC quickly enough to have a real impact?
Currently, DAC remains a costly and energy-intensive process. The energy required to capture and store CO₂ is significant, and without sustainable, low-carbon energy sources, the process could end up generating more emissions than it removes. The cost of capturing each ton of CO₂ is still high, with many DAC projects relying on government incentives and subsidies to stay financially viable. Until these costs come down, the economics of DAC will be a key factor in determining its success and its ability to scale.
The verification of DAC’s effectiveness will also be critical. As projects move beyond the pilot phase and into large-scale operations, regulators will need robust mechanisms to track the amount of CO₂ actually being removed from the atmosphere. Without stringent verification and transparency, there’s a risk that DAC could be misused as a way to “greenwash” industries allowing companies to continue their fossil fuel activities while claiming to offset their emissions.
Another critical concern in 2025 is the potential for DAC to be used as an excuse for more fossil fuel extraction. Some critics argue that the technology could be leveraged by the fossil fuel industry as a way to justify continued drilling, mining, and burning of coal, oil, and natural gas. If companies can capture a portion of the CO₂ they release, they might feel incentivized to continue polluting rather than transitioning to cleaner energy sources. Whether DAC is used for true carbon removal or as a way to delay meaningful action on emissions reductions remains a key point of debate.
Ultimately, the success of DAC will depend on more than just the science behind it. It will hinge on policy incentives, global governance, and economic feasibility. Governments will need to provide the right incentives to encourage investment in DAC technologies while ensuring that these projects are transparent, verifiable, and aligned with long-term climate goals. The road ahead is less about science fiction and more about economic strategy and governance frameworks that ensure DAC can deliver its full potential.
In conclusion, Direct Air Capture is no longer just a futuristic idea it’s entering the realm of commercial-scale operations. But whether it will truly help combat climate change depends on how well it can scale, how effectively it is verified, and how it fits into a broader, sustainable climate strategy. As we move forward, the focus will shift from the excitement of new technologies to the hard questions of economics and governance, ensuring that DAC can make a real and lasting difference.