Piloting the First Full Integrated Direct Air Capture Plant
Funded through Round 5: SMEs only, Carbon Engineering (CE) developed and operated the world’s first fully integrated direct air capture (DAC) pilot plant in Squamish, BC, using a novel configuration with its unique technologies. The project validated key technologies, reduced scale-up risks, and laid the groundwork for commercial deployment focused on producing low-carbon synthetic fuels.
CE’s DAC technology removes CO2 directly from the air using a closed-loop, calcium-based chemical process adapted from systems used in the pulp and paper industry. First, an air contactor draws air into the system, where it passes through a hydroxide solution. This solution chemically binds with the CO2 molecules, removing them from the air and trapping them in the liquid solution as a carbonate salt. Next, the CO2 contained in this carbonate solution goes through a series of chemical processes to increase its concentration, purify and compress it, so it can be delivered in gas form, ready for use or storage. Additionally, the original capture chemical used in the air contactor is regenerated. These processes involve separating the salt from the solution into small pellets in a structure called a pellet reactor. The pellets are then heated in the third step, a calciner, to release the CO2 in pure gas form. This step also leaves behind calcium oxide, which is mixed with water to rehydrate it, and then it is fed back into the pellet reactor, beginning the cycle again.
Unlike traditional carbon capture methods that rely on capturing emissions from large point sources like power plants, CE’s DAC technology can be deployed anywhere, allowing it to address diffuse and mobile emissions—such as those from transportation—that are otherwise difficult to manage. Additionally, the system uses natural gas to power the process and is designed to be energy efficient. For every tonne of CO2 captured, the process produces approximately 1.5 tonnes of pipeline-grade CO2. This CO2 can be used in enhanced oil recovery or as a feedstock for producing carbon-neutral fuels, offering a scalable solution for reducing emissions.
Bringing Technologies Together to Efficiently Capture Carbon
Before this project, CE conducted research and development on DAC technology. This project combined the major units—air contactor, pellet reactor, calciner, and slaker—demonstrating that the full process could operate continuously and effectively. The project validated the overall system design and confirmed that the components work together under real-world conditions. Additionally, CE built a capable in-house operations team during the project, enabling them to perform maintenance, piping, and electrical on-site with its own internal team. This hands-on operational experience was critical and led to new equipment and operating concepts.
A significant non-technical lesson involved the target market for deployment. Originally, CE was relying on enhanced oil recovery as the first commercial market. However, through the project, the company realized this was risky due to oil price volatility. As a result, CE pivoted toward synthetic fuel production as a more viable and scalable commercialization pathway.
What’s next?
After this project was completed in 2016, CE continued to develop, mature and commercialize its core direct air capture technology. Carbon Engineering was acquired by Occidental Petroleum in 2023 for 1.1 billion dollars. Now operating through Occidental’s subsidiary 1PointFive, CE’s “liquid DAC” technology is being deployed at commercial scale in Texas, where warmer climates are better suited to the process. As of 2025, the technology is at a state where it can be built and deployed at a mega-tonne scale and is fully derisked and commercialized. Carbon Engineering’s team of innovators continues to advance the DAC core technologies while the subsidiary 1PointFive deploys plants at large, global, commercial scale