As businesses worldwide race to meet net-zero commitments, Direct Air Capture (DAC) has emerged as a cornerstone of high-quality carbon removal strategies. Unlike traditional offset methods, DAC offers a scalable, measurable, and permanent solution to extract CO2 directly from the atmosphere. With corporations under increasing pressure to deliver on climate pledges, the demand for verified DAC credits has never been higher.
This guide highlights 2025’s leading DAC carbon credit projects, helping you identify the most effective options for your sustainability strategy. Whether you’re new to carbon offsetting or looking to diversify your portfolio, DAC provides a unique combination of technological innovation and environmental impact.
What is a Carbon Credit?
A carbon credit represents one metric ton of carbon dioxide (CO2) or its equivalent in other greenhouse gases that has been either removed from the atmosphere or prevented from being emitted. These credits are generated by projects that reduce, avoid, or sequester emissions—such as reforestation, renewable energy, or clean cooking initiatives. Companies, governments, and individuals can purchase carbon credits to offset their own emissions, helping them achieve net-zero or carbon-neutral goals. Each credit is verified by independent third parties to ensure its legitimacy, preventing double-counting and ensuring real climate impact. Carbon credits play a crucial role in financing sustainable development, particularly in regions where traditional funding is scarce, while providing a measurable way to compensate for unavoidable emissions.
Why Direct Air Capture? The Science and Business Case
Direct Air Capture is a process that uses chemical reactions to pull CO2 from ambient air, which is then stored underground or repurposed for industrial use. DAC stands out for its ability to deliver permanent carbon removal, making it a critical tool for hard-to-abate sectors and companies aiming for net-zero or carbon-negative goals.
DAC’s key advantages include permanence, as CO2 is stored securely for millennia, avoiding the risk of re-release associated with nature-based solutions. It is also highly scalable, with facilities deployable almost anywhere, and every ton of CO2 removed is precisely quantified, ensuring transparency for corporate reporting. Additionally, DAC projects often integrate renewable energy, create high-tech jobs, and support local economies.
For businesses, DAC carbon credits are particularly valuable for offsetting unavoidable emissions and demonstrating leadership in climate action. The technology aligns with multiple United Nations Sustainable Development Goals (SDGs), including Climate Action (SDG 13) and Industry, Innovation, and Infrastructure (SDG 9).
What Makes a High-Quality DAC Carbon Credit?
Not all DAC projects are equal. To ensure your investment delivers real impact, prioritize verification and certification from reputable standards like Verra, Gold Standard, or Puro.earth. Additionality is crucial: the CO2 removal must be directly attributable to the project and would not have occurred otherwise. Permanence is another key factor, as CO2 must be stored securely with minimal risk of leakage. Transparency is also essential, with projects providing clear documentation of their technology, energy sources, and storage methods.
Top-tier DAC projects also contribute to broader sustainability goals, such as renewable energy integration and community development.
Project Name | Location | Certification | Annual Removal (tons CO2) | Key Co-Benefits |
|---|---|---|---|---|
STRATOS (1PointFive) | Texas, USA | Verra (expected) | 500,000+ | Largest DAC facility, saline storage |
Project Bison (CarbonCapture) | Wyoming, USA | Puro.earth | 200,000+ (2025-2026) | Modular design, renewable energy |
Deep Sky Alberta | Alberta, Canada | In development | 10,000+ (scaling) | Multi-tech collaboration |
Climeworks Iceland | Iceland | Gold Standard | 36,000+ | Geological storage, renewable power |
Heirloom California | California, USA | Verra | 1,000+ (pilot) | Low-cost limestone-based DAC |
STRATOS (1PointFive)
STRATOS, located in Ector County, Texas, is set to be the world’s largest DAC facility, with Microsoft as its anchor buyer. The project uses renewable energy and stores CO2 in deep saline aquifers, ensuring permanence. It is expected to remove over 500,000 tons of CO2 annually once fully operational.
Project Bison (CarbonCapture)
Based in Wyoming, USA, Project Bison is certified by Puro.earth and aims to remove over 200,000 tons of CO2 annually from 2025 to 2026. Its modular design allows for rapid scaling, and its partnership with Microsoft validates its credibility.
Deep Sky Alberta
Deep Sky Alberta, located in Alberta, Canada, is currently in development and expects to remove over 10,000 tons of CO2 annually, with plans to scale further. The project’s multi-technology approach fosters innovation and collaboration among DAC startups.
Climeworks Iceland
Climeworks’ Orca plant in Iceland, certified by Gold Standard, was the first commercial DAC facility. It has a proven track record of geological storage and removes over 36,000 tons of CO2 annually.
Heirloom California
Heirloom California, located in California, USA, and certified by Verra, is currently in its pilot phase, removing over 1,000 tons of CO2 annually. Its limestone-based DAC offers a lower-cost pathway to scaling carbon removal.
How to Integrate DAC Credits Into Your Offset Strategy
To align with Science-Based Targets, use DAC credits to complement internal decarbonization efforts, following the Science Based Targets initiative (SBTi). Diversifying your portfolio by combining DAC with other removal methods, such as biochar or enhanced weathering, can mitigate risk and maximize impact. DAC projects provide robust data for ESG reporting, enhancing your brand’s credibility.
Risks and Challenges in the DAC Market
DAC credits are among the most expensive carbon removal options, though prices are expected to decline as technology matures. Supply constraints are another challenge, as large corporate buyers like Microsoft secure long-term agreements. It’s important to act early to lock in capacity. Additionally, staying informed about evolving certification standards and compliance requirements is crucial due to regulatory uncertainty.
Microsoft’s Influence on the DAC Market
Microsoft has become a driving force in the DAC market, signing record-breaking purchase agreements to secure millions of tons of carbon removal credits. In 2024, the tech giant agreed to buy 500,000 metric tons of DAC credits from 1PointFive’s STRATOS facility in Texas—the largest single DAC purchase to date—alongside smaller deals with CarbonCapture’s Project Bison in Wyoming and Deep Sky in Alberta. These agreements not only accelerate project development but also set a new standard for corporate climate leadership.
Microsoft’s large-scale purchases are spurring innovation but also creating supply constraints, as other buyers compete for limited DAC capacity. While DAC credits remain expensive, often exceeding $1,000 per ton, Microsoft’s long-term commitments are helping to bring costs down and attract new supplierstechxplore.com+1. By integrating DAC into its net-zero strategy, Microsoft is encouraging other Fortune 500 companies to follow suit, signaling strong future demand.
The Future of Direct Air Capture: Innovations to Watch
Technological advancements, including new materials and energy-efficient processes, are reducing costs and improving scalability. Governments are increasingly incentivizing DAC, with the U.S. Inflation Reduction Act (IRA) offering tax credits for carbon removal. Emerging markets, such as the Middle East and Australia, are also investing in DAC, expanding global supply.
Conclusion
Direct Air Capture is a game-changer for corporate climate strategies, offering permanence, scalability, and measurability. By investing in verified DAC projects, businesses can achieve their net-zero goals while supporting global innovation.
Ready to explore DAC for your sustainability strategy? Contact Regreener’s experts to discuss the best options for your needs.
