Skytree Secured €1 Million Loan for Icelandic DAC Project
The funding supports engineering and site studies for a planned direct air capture facility in Iceland.
Updated on Oct. 6, 2026 in Data Centers
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Is heavy investment in experimental carbon capture technologies worth the current high costs?
Skytree has secured a €1 million development loan from Invest International to advance a direct air capture project in Iceland. The company plans to leverage local geothermal energy to capture CO2 and reduce the nation's reliance on imported resources.
Why it matters
Scaling direct air capture technology is essential to meet global climate goals, as current capacity falls significantly short of established international targets for the end of the decade.
The International Energy Agency projects that direct air capture technology must reach 85 million tonnes of annual CO2 capture by 2030 to remain on track for climate targets. This represents a significant increase from the 0.01 million tonnes recorded globally in 2022.
The players
Skytree
A company based in the Netherlands that develops direct air capture technology for industrial and commercial carbon removal applications.
Invest International
A joint venture between the Dutch State and FMO that provides financing solutions for Dutch companies involved in international projects.
International Energy Agency
An intergovernmental organization that provides analysis and data regarding global energy security and sustainability targets.
Climeworks
A Swiss-based company that operates industrial-scale direct air capture plants and permanent underground carbon storage facilities.
The details
The loan from Invest International, a venture between the Dutch State and FMO, covers engineering, permitting, and site preparation studies through 2026. Skytree utilizes a model that integrates sites with energy partners, capital providers, and local offtakers to facilitate operations.
Timeline
In 2022, the International Energy Agency recorded 0.01 million tonnes of CO2 captured globally.
Climeworks activated a direct air capture and storage plant in Iceland in May 2024.
Project development for the Skytree initiative will continue through 2026.
Skytree targets the installation and operation of its Iceland technology by 2028.
The International Energy Agency has set a global capture target of 85 million tonnes for 2030.
The Tech Race
The expansion of direct air capture follows a rapid industrial scaling phase defined by the International Energy Agency's 2030 direct air capture capacity targets. This race involves moving from experimental, low-volume capture to massive infrastructure projects capable of removing millions of tonnes of carbon.
As direct air capture technology matures, the increased supply of captured CO2 may shift costs for industries currently reliant on traditional, high-carbon sourcing methods. These advancements ultimately influence the carbon footprint of future commercial and industrial products available to consumers.
The takeaway
Direct air capture is moving from early-stage testing toward large-scale industrial deployment as firms secure necessary capital for infrastructure. Readers should note that while current costs remain high, scaling efforts like this project are critical to reaching 2030 global climate targets.
Further reading
Learn more about the latest innovations in Data Centers to understand how carbon capture integrates with power-intensive facilities.
Live Poll
Is heavy investment in experimental carbon capture technologies worth the current high costs?
