Carbon Dioxide Removal Technologies 2026

DAC BECCS Biochar ERW Regions of productionUS, EU, UK, Switzerland, Kenya, OmanUS, EU, UK US, EU, South America, Asia, Australia, AfricaBrazil, UK, EU, US, India Stage and maturityEarly-to-mid-stage (primarily pilot and demonstration plants)Mature to mid-stage (pilot plant)Mature (commercial plant)Early-stage to mid-stage (pilot and demonstration plant) Primarily new entities/ start-ups with high capital costs and limited financial backing.Larger energy companies expanding into BECCS projects, employing existing operations.Often small and medium- sized entities (SMEs) or existing companies with biomass in their value chains, diversifying into biochar and CDR.A mix of start-ups and partnerships with existing mineral producers. Capital requirements High High Medium Medium Technology developments and high capex and infrastructure building required.Typically involve significant capital investments in infrastructure, technology for both bioenergy production and CCS.Some capex required for pyrolysis machines, but funding can be more limited. It also helps that biochar can benefit from revenue streams other than sales of carbon credits.Most of the costs are related to operational deployment, with limited upfront capex required. Most equity funding is used to improve MRV of the pathway, which should be reduced once ERW matures.15 Access to debt financingLimited Moderate High Limited Limited: early-stage risks and high capital intensity make debt challenging; heavily reliant on equity and prepayments.Moderate: access improves as projects mature, supported by subsidies and partnerships.High: mature technology and market demand make debt financing viable.Limited: early-stage risks and lack of MRV clarity restrict access. Alignment with regional tax credits/ incentivesStrong Strong Weak Weak Strong alignment with 45Q in the US and EU incentives; crucial for viability.Strong alignment with IRA and EU Green Deal16 policies.Low alignment: operates independently of tax credits and subsidies.Low alignment: operates independently of tax credits and subsidies. Revenue diversificationLow Medium High Low Primarily carbon credits. Some technology licensing (sale of proprietary DAC technology to third parties).Electricity generation from biomass combustion with CO2 capture.Revenue from carbon credits, bio-oil, soil amendments and heat/electricity.Primarily carbon credits, with limited diversification into agricultural lime as a by-product for soil enhancement and acidity reduction. Sources of capital (to date)Public, VC funding, strategic investors and growth capital (one case of debt financing to date).First plant typically a mix of public subsidies and balance sheet money; second plant mix of equity and debt.Typically equity or from balance sheet. Four successful cases of debt financing.VC funding, buyer prepayments (debt financing currently being explored). Financing strategy Relies on tax incentives (e.g. 45Q), equity and prepayments to de-risk capital needs.Mix of debt, equity and public subsidies to manage first-of-a-kind risks; partnerships help reduce financial burdens.Minimal reliance on subsidies; strong market demand enables equity and debt use.Relies on VC funding and buyer prepayments; requires MRV standardization for better financing options.Comparison of typical supplier profiles by CDR pathway TABLE 10 Carbon Dioxide Removal Technologies: Market Overview and Offtake 25