It is a spectacular opportunity! The aspect I like most is that...

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Grainger

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19/03/24

14:19

Post #: 72961129
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Originally posted by vacre: ↑

I think it's inevitable that more money will start flowing towards DAC (direct air capture) in the future.

One day ago Google announced they are contributing to the US Department of Energy program to help establish the first building blocks of a carbon removal market (US$35M). They are matching dollar for dollar.

https://carbonherald.com/google-set...its-becomes-first-company-to-answer-doe-call/

Why do we care... we have a business line within our CO2 Mitigation unit specifically dealing with DAC via our license agreement with Heirloom Carbon Technologies. Heirloom have an ambitious goal to remove 1 billion tonnes of carbon from the air by 2035. A ramp up to that kind of scale will be more than exciting. We have an exclusive license to provide the calciner (our unique kiln tech) which is integral to their process. Our license has a royalty floor of $3 per tonne with other triggers for increase and adjustment built in, but 3 is a floor price.

https://www.heirloomcarbon.com/technology

Heirloom look promising as they a) have low cost technology and have probably the only DAC tech that can realistically do it for less than US$100/ton. and b) have been selected for a DAC hub in Louisiana called Project Cypress which will kick off shortly.

https://www.reuters.com/business/en...works-led-carbon-air-capture-hubs-2023-08-11/

I think this is a sleeping giant as the US never does things in halves and are less risk averse like we are in Australia. They will have a go and in order to ramp up to 1 billion tonnes by 2035 will require hundreds/thousands of Heirloom facilities, all with our calciner in the middle.

Calix is selling the shovels to the DAC boom.
What do others think of this opportunity? I think the ramp up potential of this is enormous and is only one of many business lines we are currently working.

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It is a spectacular opportunity! The aspect I like most is that we are the lowest energy and probably lowest cost route with tech that is already proven at the scale being considered. Of course the market is discounting anything that isn't producing an income now so we are unlikely to get credit for it until the royalties actually start rolling in.

CXL Price at posting: $1.56 Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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