Munich-based DAC-Tech startup Phlair (x Carbon Atlantis), has raised €14.5 million to develop scalable and affordable CO2 extraction from ambient air using hydrolyzers.
Investors and Future Plans:
Extantia Capital is leading the funding round, which also includes a €2.5 million grant from the EIC accelerator and participation from Planet A and Verve Ventures. The oversubscribed round included participation from established investors Atlantic Labs, Counteract, and UnternehmerTUM Funding for Innovators.
With the help of this finance, the company plans to get its first-ever Direct Air Capture facilities online in 2025, serving several early clients like Shopify, Stripe, Klarna, and Deep Sky.
Phlair, a startup founded in 2022, developed an innovative solution using readily available parts, perfect for intermittent renewable energy sources. The outcome is a DAC technology that is straightforward but innovative, scalable, and reasonably priced. Phlair’s technology uses an electricity-only pH-swing mechanism to effectively catch and release CO2.
Partners use the CO2 they gather to create CO2-negative compounds or store it permanently. Using existing, well-proven low-capex components from water electrolysis and Polymer Electrolyte Membrane (PEM) fuel cells, Phlair’s approach enables great durability and quick scaling. Additionally, the device has an integrated energy storage mechanism that does not require the installation of costly battery storage.
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Founder and CEO Malte Feucht stated:
“Our DAC system is purposefully designed for mass manufacturing. By combining our ability to be manufactured with quick execution, we can begin meeting the pressing global demand for scalable DAC solutions and produce significant quantities. We are in a wonderful position to lead this market since we are achieving all of this while lowering costs toward our long-term objective of less than $100/tCO2.”
Within just 18 months of its founding, the company has successfully developed a ton-scale demonstrator of its technology and has seen substantial commercial success. Further, it provides permanent carbon removal services to clients like Deep Sky, Klarna, Shopify, and Stripe. The increase will accelerate the construction of Electra 01 and Electra 02, two 260 t-CO2/year FOAK units. Meanwhile, the transaction lays the groundwork for Dawn, Phlair’s first large-scale commercial plant, which will capture over 20,000 t-CO2 per year and start operations in 2026.
Partner at Extantia Capital Torben Schreiter stated:
“It takes skill to scale DAC while aggressively cutting expenses. We believe Phlair leads the third wave of DAC-Tech companies (DAC 3.0) by focusing on both price and manufacturability. Their exceptional team moves quickly and delivers impressive results.”
