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Carbon Capture Startup Pivots to Oil Extraction
23 Sep
Summary
- Startup Spiritus shifts focus from carbon removal to selling CO2.
- The pivot follows US federal funding cuts and corporate climate retreat.
- The company aims to use CO2 to aid in oil extraction processes.
Spiritus, a startup initially focused on direct air capture of carbon dioxide for underground storage, is undergoing a significant business model transformation. The company is now pivoting to sell captured CO2, intending to use it to assist in oil extraction processes.
This strategic recalibration within the clean-tech industry is largely attributed to recent US federal funding cuts. Furthermore, a noticeable retreat from ambitious climate commitments by corporations has created a challenging environment for carbon removal ventures.
Spiritus's new direction aims to create revenue by supplying captured CO2 for enhanced oil recovery, a process that uses the gas to increase oil production from existing wells. This move signifies an adaptation to current economic and funding realities impacting the sector.
