Carbon capture startup pivots to oil recovery amid funding squeeze
Spiritus, a startup initially focused on removing CO2 from the air for underground storage, has shifted its business model. The company will now sell captured carbon to oil producers to enhance fossil fuel extraction, reflecting broader struggles in the clean-tech sector after reduced federal support and weaker corporate demand for climate solutions.
Sources: bloomberg.com
“This pivot underscores how quickly early-stage climate tech is adapting to survive in a less favorable funding environment—prioritizing revenue over mission alignment.”
What it means
The move highlights a growing tension in climate tech: startups need near-term revenue to scale, but partnerships with oil and gas risk alienating ESG-focused investors. Whether this becomes a viable path or a short-term workaround depends on how long the funding drought lasts and whether carbon markets rebound. Competitors may face similar pressure to abandon pure-play carbon removal for more lucrative, if controversial, applications.
Read the original reporting
The outlets below did the original reporting.
- Climate Startup Shifts Focus From Carbon Removal to Oil Recovery — bloomberg.com
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