Skytree Secured Loan for Icelandic DAC Project
The startup aims to utilize geothermal energy for direct air capture by 2028.
Updated on Oct. 6, 2026 in Data Centers
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Skytree has secured a €1 million development loan from Invest International to support a new direct air capture (DAC) project in Iceland. The company currently operates a separate DAC unit at Lingezegen Energy in the Netherlands.
Why it matters
The project aims to leverage Icelandic geothermal energy to scale CO2 capture, addressing a significant gap between current deployment and the International Energy Agency's 2030 targets. Rapid scaling is required to move from the 0.01 million tonnes captured in 2022 to the 85 million tonnes targeted by 2030.
The development loan covers initial engineering and site preparation, with Skytree targeting operations by 2028. This follows the 2024 activation of the Climeworks plant, illustrating the ongoing effort to reach the IEA's 85 million tonne capture milestone for 2030.
The players
Skytree
A Netherlands-based startup focused on direct air capture technology and the deployment of modular carbon removal systems.
Invest International
A joint venture between the Dutch State and FMO that provides financing for international projects to drive sustainable development.
Climeworks
A Swiss firm specialized in atmospheric carbon removal that activated an industrial-scale direct air capture plant in Iceland.
International Energy Agency
An intergovernmental organization that provides analysis and data-driven recommendations on global energy policy and decarbonization targets.
The details
Skytree utilizes direct air capture — a technology that uses chemical processes to pull CO2 directly from the atmosphere — to isolate carbon for sequestration or industrial use. Their Skypark model operates by integrating modular capture hardware with local energy partners, capital providers, and CO2 offtakers. The current funding will specifically support the engineering and permitting phase required for the Icelandic deployment.
Timeline
2022: IEA reported 0.01 million tonnes of total global CO2 captured.
May 2024: Climeworks activated its DAC and storage plant in Iceland.
2026: The Skytree project development phase will continue through this year.
2028: Skytree targets the installation and operation of the Iceland project.
2030: IEA target of 85 million tonnes of annual CO2 capture.
The Tech Race
This project positions Skytree within an increasingly competitive landscape of carbon removal startups racing to scale capacity. It directly follows the path set by larger installations like the Climeworks plant, tracking against the aggressive IEA milestones required for grid-scale decarbonization.
The development phase for the Iceland site will run through 2026, meaning industrial-scale operations will not be available to local partners until at least 2028. The ultimate success of these modules depends on integrating with geothermal energy supplies to lower the current high cost per tonne.
The takeaway
Skytree's financing highlights the reliance on international development capital to bridge the gap in carbon capture deployment. Readers should watch for progress updates during the 2026 development phase to see if the firm maintains its 2028 operational target.
Further reading
For broader trends in infrastructure scalability, see Data Centers.
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