Has Prometheus Just Rewritten Carbon Economics?

Prometheus announces DAC cost of under US$50 per ton, prompting reassessments of decarbonization strategies as competition accelerates

7 Aug 2025

A US start-up has announced a major advance in carbon removal technology, stating it can capture carbon dioxide from the air for less than US$50 per tonne, a cost level that could alter decarbonisation strategies across North America.

Prometheus, a California-based company, said its new direct air capture system represents a significant improvement in affordability for a sector long limited by high costs and slow deployment. The claim has drawn attention from policymakers and investors as competition increases among carbon removal developers.

The announcement comes during a period of rapid growth in the field, with energy groups such as Occidental Petroleum investing in carbon capture and storage. Analysts said Prometheus’s cost target, if validated, could challenge established players and accelerate market adoption, although large scale commercial deployment remains unproven.

The company pairs its redesigned air capture unit with a process that converts captured carbon into synthetic fuels. This allows facilities to be built in high solar resource regions rather than near industrial centres. Founder Rob McGinnis said the approach “unlocks the best solar locations” and aligns with a wider industry move toward modular and decentralised technology. A 200 tonne per year demonstration plant is now under construction.

The timing coincides with stricter climate regulations and growing demand for verified carbon credits. Experts noted that early stage cost claims require independent confirmation and that matters such as energy supply, land availability and financing will influence how quickly the technology can scale.

If confirmed, the company’s numbers could affect synthetic fuel economics and corporate net zero plans. For now, the cost target has added momentum to North America’s carbon removal race and highlighted the sector’s increasing role in regional climate strategy.