'Proactively adapting': carbon capture pioneer Climeworks cuts 106 jobs

The Swiss company, which develops direct-air capture (DAC) technology to extract CO2 from the atmosphere, is facing uncertainty as the US government scales back support for climate projects, reports Bloomberg.

This comes despite Climeworks' plans to build a massive plant in Louisiana, which was backed by a $50 million grant, with potential for more.

"We are prepared to move forward with that project, but we also need to consider the scenario that there are changes, or that the administration will not move forward with the project," Jan Wurzbacher, co-founder and co-chief executive officer of Climeworks, told Bloomberg Green.

Pilot plant in Iceland

Founded in 2009, Climeworks today has a pilot plant in Iceland that according to the company can trap 4,000 tons of CO2 per year but, according to Bloomberg, it has never captured more than 25 percent of that number yearly. Now, the company is building a bigger plant, Mammoth, also in Iceland.

Despite the challenges, Climeworks is still pursuing funding and considering acquisitions. In a message on the company's website, it states:

"After a phase of strong growth, Climeworks is proactively adapting its organization to maintain agility and efficiency. We will reduce up to 106 positions globally, of which 78 in Switzerland. In Switzerland, we are currently in ongoing negotiations for a social plan.

Today, Climeworks is positioned well technologically and commercially. Climeworks will continue to take its core technology to the next level and will further diversify its commercial offering to broaden its market impact and to solidify its position as the undisputed CO2 removal leader."