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.
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 – Texas, USA
STRATOS, developed by 1PointFive in Ector County, Texas, is set to become the world’s largest Direct Air Capture (DAC) facility. Powered by renewable energy, the project will remove over 500,000 tons of CO2 annually once fully operational in mid-2025. STRATOS stores captured CO2 in deep saline aquifers, ensuring permanence and minimal environmental risk. Microsoft’s landmark agreement to purchase credits from STRATOS underscores its role as a flagship project in scaling DAC technology.
Location: Ector County, Texas, USA
Annual Impact: 500,000+ tons CO2 removed
Key Benefits
Climate: Delivers permanent CO2 removal at an unprecedented scale, directly contributing to global net-zero targets.
Innovation: Uses renewable energy to minimize operational emissions, setting a new standard for sustainable DAC.
Economic: Drives local job creation and positions Texas as a leader in carbon management technology.
SDGs: Aligns with SDG 9 (Industry, Innovation, and Infrastructure) and SDG 13 (Climate Action).
Why It Stands Out
STRATOS represents a breakthrough in large-scale carbon removal, combining cutting-edge technology with corporate commitment. Its partnership with Microsoft not only secures long-term demand but also validates DAC as a viable solution for hard-to-abate emissions. The project’s size, renewable energy integration, and secure storage make it a global benchmark for high-impact climate action. By demonstrating the feasibility of gigaton-scale CO2 removal, STRATOS is paving the way for the next generation of DAC facilities.
Project Bison – Wyoming, USA
Project Bison, located in Wyoming, is a modular DAC facility developed by CarbonCapture, designed to remove over 200,000 tons of CO2 annually from 2025 to 2026. The project’s modular design allows for rapid scaling and cost-effective deployment, making it one of the most flexible DAC solutions available. Certified by Puro.earth, Project Bison leverages Wyoming’s renewable energy resources and robust carbon storage infrastructure.
Location: Wyoming, USA
Annual Impact: 200,000+ tons CO2 removed
Key Benefits
Climate: Provides scalable, high-integrity CO2 removal with a clear pathway to expansion.
Innovation: Modular units reduce upfront costs and accelerate deployment, making DAC more accessible.
Community: Supports Wyoming’s transition to a carbon management hub, creating jobs and economic opportunities.
SDGs: Contributes to SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).
Why It Stands Out
Project Bison’s collaboration with Microsoft and its modular approach make it a pioneer in adaptable, large-scale DAC. The project’s ability to incrementally increase capacity while maintaining high standards for permanence and additionality sets it apart. By proving that DAC can be both scalable and economically viable, Project Bison is helping to redefine the carbon removal landscape.
Deep Sky Alberta – Alberta, Canada
Deep Sky Alberta is a multi-technology DAC project that brings together multiple startups to test and deploy innovative carbon removal solutions at a single site. Currently in development, the project aims to remove over 10,000 tons of CO2 annually, with plans to scale significantly. Its technology-agnostic model fosters collaboration and accelerates the commercialization of next-generation DAC systems.
Location: Alberta, Canada
Annual Impact: 10,000+ tons CO2 removed (scaling)
Key Benefits
Climate: Advances multiple DAC technologies simultaneously, speeding up innovation.
Innovation: Acts as a living lab for DAC startups, reducing barriers to entry for new solutions.
Economic: Strengthens Alberta’s position as a leader in carbon capture and storage (CCS).
SDGs: Supports SDG 9 (Industry, Innovation, and Infrastructure) and SDG 17 (Partnerships for the Goals).
Why It Stands Out
Deep Sky’s unique model of hosting diverse DAC technologies under one roof makes it a catalyst for industry-wide progress. By providing a platform for startups to collaborate and scale, the project is driving down costs and increasing the efficiency of carbon removal. Its focus on innovation and scalability positions Deep Sky as a key player in the future of DAC.
Climeworks Iceland – Iceland
Climeworks’ Orca plant in Iceland is the world’s first commercial DAC facility, removing over 36,000 tons of CO2 annually. The project uses geothermal energy to power its operations and stores CO2 permanently in basalt rock formations through mineralization. Certified by the Gold Standard, Orca has set the benchmark for high-integrity, renewable-powered carbon removal.
Location: Iceland
Annual Impact: 36,000+ tons CO2 removed
Key Benefits
Climate: Offers permanent CO2 storage with minimal environmental impact.
Innovation: Proves the viability of geological storage and renewable-powered DAC.
Biodiversity: Minimal land and water use, preserving Iceland’s natural ecosystems.
SDGs: Aligns with SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).
Why It Stands Out
As the first commercial DAC facility, Orca has demonstrated that large-scale carbon removal is not only possible but also commercially viable. Its success has inspired Climeworks’ expansion, including the development of the Mammoth facility, which will increase capacity tenfold. Orca’s combination of geological storage, renewable energy, and proven performance makes it a gold standard in the DAC industry.
Heirloom California – California, USA
Heirloom California is pioneering limestone-based DAC, a lower-cost and energy-efficient alternative to traditional methods. Currently in its pilot phase, the project removes over 1,000 tons of CO2 annually, with a focus on rapid scaling. Certified by Verra, Heirloom’s technology uses natural limestone to absorb CO2, which is then permanently stored underground.
Location: California, USA
Annual Impact: 1,000+ tons CO2 removed (pilot phase)
Key Benefits
Climate: Reduces energy requirements and operational costs, making DAC more affordable.
Innovation: Limestone-based capture offers a scalable pathway to gigaton-level removal.
Community: Supports California’s ambitious climate goals and clean tech economy.
SDGs: Contributes to SDG 9 (Industry, Innovation, and Infrastructure) and SDG 13 (Climate Action).
Why It Stands Out
Heirloom’s limestone-based approach is a game-changer for the economics of DAC. By significantly lowering the cost of carbon capture, the project is making high-quality CO2 removal accessible to a broader range of businesses. Its focus on affordability and scalability positions Heirloom as a leader in the next wave of carbon removal innovation.
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.
