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Carbon removal startup shifts to CO2-enhanced oil recovery

A direct air capture company originally focused on sequestering atmospheric CO₂ has pivoted to selling the gas to oil producers. The move follows reduced federal funding and weaker corporate demand for climate tech, prompting a strategic shift in its business model.

Sources: thestar.com.my

“This pivot highlights how early-stage climate tech startups are being forced to prioritize revenue over mission as funding dries up.”
— StartupReader

What it means

The shift reflects broader pressures in carbon removal, where high costs and uncertain demand have made pure-play sequestration unsustainable for some. If oil companies adopt CO₂ for enhanced recovery, it could create a near-term market—but risks undermining the startup’s original climate goals. Watch whether this becomes a trend or a last-resort move for struggling firms.

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