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Here are six things to know about it.

If one company has set the pace for direct air capture, it’s Climeworks. The Switzerland-based business opened its — and the world’s — first commercial DAC plant in 2017, capable of capturing “several hundred tons” of carbon dioxide each year. Today, the company unveiled its newest plant, the aptly named Mammoth. Located in Iceland, Mammoth is designed to take advantage of the country’s unique geology to capture and store up to 36,000 metric tons of carbon per year — eventually. Here’s what you need to know about the new project.
Mammoth is not yet operating at full capacity, with only 12 of its planned 72 capturing and filtering units installed. When the plant is fully operational — which Climeworks says should be sometime next year — it will pull up to 36,000 metric tons of CO2 out of the atmosphere annually. For scale, that’s about 1/28,000th of a gigaton. To get to net zero emissions, we’ll have to remove multiple gigatons of carbon from the atmosphere every year.
“The engineered solutions will have to play a major — and I would say even the major part of this task,” said Climeworks CEO Jan Wurzbacher at the virtual press conference for Mammoth’s unveiling. In his opinion, nature-based solutions “will not be able to scale to the level where we need them to be.”
So in the context of where we need to go, Mammoth is almost nothing. But in the context of our current reality, it’s nine times the size of the next largest DAC facility: another Iceland-based Climeworks plant called Orca. And it’s a major stepping stone towards the company’s ultimate goal of capturing a million metric tons of CO2 yearly by 2030 and a billion by 2050.
Climeworks first broke ground on Mammoth in June 2022, and 18 months later the company announced that the “core pieces of the plant are built.” Now that the plant has started capturing CO2, Climeworks says the rest of 2024 will be devoted to installing the remaining CO2capture units and ramping toward full capacity.
Thus far in its history, Climeworks has largely avoided the construction delays that often plague first-of-its-kind projects. “They’re coming out with new projects every three to four years, which is a pretty wild timeline,” said Erin Burns, Executive Director of the nonprofit Carbon180.
Through Climework’s partnership with Icelandic geothermal company ON Power, Mammoth is powered in full by geothermal energy — although the company has long been reticent about how much energy, exactly, it needs.
At any rate, Climeworks has committed to powering the direct air capture process as well as its storage process with 100% renewables in the long run. The company cited Kenya, New Zealand, and Indonesia as other areas that would be geologically advantageous for future Climeworks facilities, as all have substantial geothermal resources.
Climeworks said it would be able to disclose an exact cost per metric ton of carbon removal figure after Mammoth has been operational for a year or two. But in the meantime, Wurzbacher said the company is “closer to the $1,000 per ton mark than we are to the $100 per ton mark.” He expects prices to drop as the company further scales, and is aiming for $300 to $350 per metric ton by 2030, and ultimately $100 per metric ton by 2050. That’s in line with the Department of Energy’s Earthshots initiative, which aims to reduce the cost of a variety of carbon dioxide removal pathways to below $100 per metric ton by 2050.
While Climeworks hasn’t divulged Mammoth’s lifetime carbon removal capacity, it said the plant is designed to operate for 25 years, and that a third of its lifetime capacity has already been sold. The remainder will be sold in the next year or two, representatives told reporters
The company has offtake agreements with more than 160 organizations including some major corporate buyers such as JPMorgan Chase, Boston Consulting Group and Microsoft. Many of these agreements span a decade or more and involve tens of thousands of tons of CO2 removal from current and future Climeworks projects. (The company also recently opened a marketplace, Climeworks Solutions, to package and sell “high quality” carbon credits from other carbon removal companies.)
The Mammoth plant was primarily financed by Climework’s own equity, said Wurzbacher. “But going forward, project financing will be vital to accelerate the scale up. And for that, such long-term offtake agreements are important.”
Now that the plant is operational, it should help drive more investment, Dana Jacobs, chief of staff at the Carbon Removal Alliance, told me. “Having carbon removal projects that you can see and reach out and touch and understand is so critical,” she said.
Climeworks said the lessons from Mammoth will help the company scale further as it enters the U.S. market through its participation in the Department of Energy-funded direct air capture hub, Project Cypress in Louisiana.
Climeworks is working on Project Cypress alongside developer Battelle and another direct air capture company, Heirloom. The project is designed to capture a million metric tons of CO2annually by 2030, and recently received an initial $50 million grant from the DOE to kickstart the project’s planning, design and community engagement processes.
Editor’s note: This story has been updated with quotes and additional information from Climeworks’ team.
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Clean energy stocks were up after the court ruled that the president lacked legal authority to impose the trade barriers.
The Supreme Court struck down several of Donald Trump’s tariffs — the “fentanyl” tariffs on Canada, Mexico, and China and the worldwide “reciprocal” tariffs ostensibly designed to cure the trade deficit — on Friday morning, ruling that they are illegal under the International Emergency Economic Powers Act.
The actual details of refunding tariffs will have to be addressed by lower courts. Meanwhile, the White House has previewed plans to quickly reimpose tariffs under other, better-established authorities.
The tariffs have weighed heavily on clean energy manufacturers, with several companies’ share prices falling dramatically in the wake of the initial announcements in April and tariff discussion dominating subsequent earnings calls. Now there’s been a sigh of relief, although many analysts expected the Court to be extremely skeptical of the Trump administration’s legal arguments for the tariffs.
The iShares Global Clean Energy ETF was up almost 1%, and shares in the solar manufacturer First Solar and the inverter company Enphase were up over 5% and 3%, respectively.
First Solar initially seemed like a winner of the trade barriers, however the company said during its first quarter earnings call last year that the high tariff rate and uncertainty about future policy negatively affected investments it had made in Asia for the U.S. market. Enphase, the inverter and battery company, reported that its gross margins included five percentage points of negative impact from reciprocal tariffs.
Trump unveiled the reciprocal tariffs on April 2, a.k.a. “liberation day,” and they have dominated decisionmaking and investor sentiment for clean energy companies. Despite extensive efforts to build an American supply chain, many U.S. clean energy companies — especially if they deal with batteries or solar — are still often dependent on imports, especially from Asia and specifically China.
In an April earnings call, Tesla’s chief financial officer said that the impact of tariffs on the company’s energy business would be “outsized.” The turbine manufacturer GE Vernova predicted hundreds of millions of dollars of new costs.
Companies scrambled and accelerated their efforts to source products and supplies from the United States, or at least anywhere other than China.
Even though the tariffs were quickly dialed back following a brutal market reaction, costs that were still being felt through the end of last year. Tesla said during its January earnings call that it expected margins to shrink in its energy business due to “policy uncertainty” and the “cost of tariffs.”
Alphabet and Amazon each plan to spend a small-country-GDP’s worth of money this year.
Big tech is spending big on data centers — which means it’s also spending big on power.
Alphabet, the parent company of Google, announced Wednesday that it expects to spend $175 billion to $185 billion on capital expenditures this year. That estimate is about double what it spent in 2025, far north of Wall Street’s expected $121 billion, and somewhere between the gross domestic products of Ecuador and Morocco.
This is a “a massive investment in absolute terms,” Jefferies analyst Brent Thill wrote in a note to clients Thursday. “Jarringly large,” Guggenheim analyst Michael Morris wrote. With this announcement, total expected capital expenditures by Alphabet, Microsoft and Meta for 2026 are at $459 billion, according to Jefferies calculations — roughly the GDP of South Africa. If Alphabet’s spending comes in at the top end of its projected range, that would be a third larger than the “total data center spend across the 6 largest players only 3 years ago,” according to Brian Nowak, an analyst at Morgan Stanley.
And that was before Thursday, when Amazon told investors that it expects to spend “about $200 billion” on capital expenditures this year.
For Alphabet, this growth in capital expenditure will fund data center development to serve AI demand, just as it did last year. In 2025, “the vast majority of our capex was invested in technical infrastructure, approximately 60% of that investment in servers, and 40% in data centers and networking equipment,” chief financial officer Anat Ashkenazi said on the company’s earnings call.
The ramp up in data center capacity planned by the tech giants necessarily means more power demand. Google previewed its immense power needs late last year when it acquired the renewable developer Intersect for almost $5 billion.
When asked by an analyst during the company’s Wednesday earnings call “what keeps you up at night,” Alphabet chief executive Sundar Pichai said, “I think specifically at this moment, maybe the top question is definitely around capacity — all constraints, be it power, land, supply chain constraints. How do you ramp up to meet this extraordinary demand for this moment?”
One answer is to contract with utilities to build. The utility and renewable developer NextEra said during the company’s earnings call last week that it plans to bring on 15 gigawatts worth of power to serve datacenters over the next decade, “but I'll be disappointed if we don't double our goal and deliver at least 30 gigawatts through this channel by 2035,” NextEra chief executive John Ketchum said. (A single gigawatt can power about 800,000 homes).
The largest and most well-established technology companies — the Microsofts, the Alphabets, the Metas, and the Amazons — have various sustainability and clean energy commitments, meaning that all sorts of clean power (as well as a fair amount of natural gas) are likely to get even more investment as data center investment ramps up.
Jefferies analyst Julien Dumoulin-Smith described the Alphabet capex figure as “a utility tailwind,” specifically calling out NextEra, renewable developer Clearway Energy (which struck a $2.4 billion deal with Google for 1.2 gigawatts worth of projects earlier this year), utility Entergy (which is Google’s partner for $4 billion worth of projects in Arkansas), Kansas-based utility Evergy (which is working on a data center project in Kansas City with Google), and Wisconsin-based utility Alliant (which is working on data center projects with Google in Iowa).
If getting power for its data centers keeps Pichai up at night, there’s no lack of utility executives willing to answer his calls.
The offshore wind industry is now five-for-five against Trump’s orders to halt construction.
District Judge Royce Lamberth ruled Monday morning that Orsted could resume construction of the Sunrise Wind project off the coast of New England. This wasn’t a surprise considering Lamberth has previously ruled not once but twice in favor of Orsted continuing work on a separate offshore energy project, Revolution Wind, and the legal arguments were the same. It also comes after the Trump administration lost three other cases over these stop work orders, which were issued without warning shortly before Christmas on questionable national security grounds.
The stakes in this case couldn’t be more clear. If the government were to somehow prevail in one or more of these cases, it would potentially allow agencies to shut down any construction project underway using even the vaguest of national security claims. But as I have previously explained, that behavior is often a textbook violation of federal administrative procedure law.
Whether the Trump administration will appeal any of these rulings is now the most urgent question. There have been no indications that the administration intends to do so, and a review of the federal dockets indicates nothing has been filed yet.
The Department of Justice declined to comment on whether it would seek to appeal any or all of the rulings.
Editor’s note: This story has been updated to reflect that the administration declined to comment.