Frontier Signs $30.6M Deal With Phlair for CO₂ Removal

Frontier has signed a historic $30.6 million contract with Phlair, symbolizing a key milestone in the development of direct air capture technology. The record-breaking deal signifies the first significant electrochemical DAC deployment and targets the removal of 47,000 tons of CO₂ from the air during 2027-2030. The deal facilitates the establishment of Phlair's first commercial-scale DAC plant in Alberta, Canada, a key breakthrough after a prior prepurchase of 275 tons in September 2023.

Frontier and Phlair's collaboration is significant not just in terms of its financial size but also because of the novel method of carbon removal it introduces. Phlair's technology makes use of an all-electric design that lowers energy costs by a considerable margin compared to traditional direct air capture. The underpinning of this innovation lies in an electrochemical process using a hydrogen-looping electrolyzer. In contrast to conventional DAC systems that involve heating capture materials—a process that increases energy consumption and expense—Phlair captures and releases CO₂ without heat, at a cost of around $15 per ton of CO₂. Not only does this innovation reduce energy costs but also fits with increasing calls for cost-efficient solutions in the fight against climate change.

One of the main selling points of Phlair is its adaptive energy approach. Phlair's system is geared to run efficiently using renewable sources of energy, including behind-the-meter solar power that differentiates it from competitors. Through on-site solar power use, Phlair does not have to contend with grid connection complexities and gets to benefit from cheaper energy costs. This innovation sets Phlair apart as the first DAC company to utilize a behind-the-meter solar solution, an action that has the potential to redefine industry norms on both energy efficiency and sustainability. Malte Feucht, Phlair Cofounder and CEO, highlighted the importance of the agreement, stating that "this offtake unlocks and reduces the cost of our supply chain, fast-tracking Phlair's scale-up by several years." He further stated that Project Dawn—the first DAC facility to be powered by behind-the-meter solar—exemplifies a distinct advantage in energy procurement that can have significant consequences for future carbon removal projects.

The Phlair's DAC system technology is scalable and modular in nature, enabling easy integration with established industrial systems and supply chains. The modularity not only reduces the upfront costs of DAC installations but also provides developers with the option to build out systems in stages. The capacity to develop these systems in stages also allows firms to ramp up carbon removal activity on a stepwise basis in tandem with changing market needs and improvements in technology. This kind of adaptable strategy is essential for working with the tremendous scale of the carbon removal challenge, as it offers a workable route towards gigaton reductions in atmospheric CO₂ over periods of time.

Frontier Head of Deployment Hannah Bebbington emphasized the strategic value of the innovation. She noted that Phlair's integration of electrochemical capture and adaptive energy management is one possible route toward developing energy-efficient DAC systems. Bebbington says that combining these advanced technologies could be critical to making the kind of massive carbon removal necessary to achieve international climate goals. By investing in Phlair's cutting-edge technology, Frontier is placing itself at the forefront of an industry that is innovating rapidly to tackle climate change.

Frontier Founding Members, an alliance that encompasses industry giants such as Stripe, Google, Shopify, and McKinsey Sustainability, together with iconic brands such as Autodesk, H&M Group, Workday, and Salesforce, supported the transaction. Their support reinforces the increasing acknowledgment by large corporations that scalable and affordable carbon removal is not just an environmental necessity but a business strategic priority. Additionally, Frontier's partnership with WattTime also enhances the project by combining real-time grid emissions data. This integration will allow portfolio companies to make data-driven, informed choices regarding their sources of energy so that DAC projects are positively impacting net carbon removal and overall sustainability objectives.

Project Dawn, as it has been dubbed, will be an important proof point for the viability of electrochemical DAC technology. Its successful rollout in Alberta can be the stepping stone for projects of this kind across the globe, proving that low-cost, scalable carbon removal is achievable. The project complements larger corporate net-zero plans and reaffirms that creative energy solutions can be utilized to mitigate the climate crisis. While the world struggles to cut greenhouse gas emissions urgently, the agreement is a welcome step towards revolutionizing how carbon removal is being done on a industrial scale.

Through the integration of innovative electrochemical processes with adaptive renewable energy management, Frontier and Phlair are pioneering a new direction for the carbon removal sector. Not only does their partnership hold out enormous environmental potential, but it also establishes a new standard for cost-effective and scalable DAC systems. As Project Dawn transitions from vision to reality, it is a testament to the strength of innovation in leading the way to a more sustainable world.