PitchBook Analyst Note: Postcombustion Carbon Removal

VC interest in postcombustion carbon removal soars

Postcombustion carbon capture, which uses carbon-scrubbing technologies to remove carbon released after fuel is burned (or released through other chemical processes), is a valuable technology because it can readily integrate with existing infrastructure, making it an appealing investment to those looking to extend the life of carbon-intensive assets.

The second quarter of 2022 saw the highest-ever VC investment in carbon capture startups, with $841.5 million invested across 11 deals.

Our latest Emerging Tech Research on the topic discusses the various technologies for carbon removal and drivers of interest in postcombustion carbon capture, including its varied approaches. The report also includes a closer look at VC-backed companies in the space, such as Climeworks, Mission Zero and Travertine.

Key takeaways:

• Carbon capture technologies are experiencing high global interest and investment, and the regulatory environment has created pressures and incentives that will support their continued growth in the future.
• While carbon removal technology is not new, the landscape for modern carbon removal technologies (both point source carbon capture and direct air capture) is relatively young and extremely broad, encompassing various approaches with a focus on decreasing energy requirements.