Carbon Capture Gets a $17M Vote of Confidence

Avnos lands $17M to launch its first commercial carbon removal plant, a crucial test for scalable, lower-cost capture

23 Feb 2026

The race to commercialise carbon removal in the US has taken a further step after direct air capture developer Avnos secured up to $17mn in phased project financing for its first commercial facility.

The funding will support Project Cedar, a plant designed to remove about 3,000 metric tonnes of carbon dioxide from the atmosphere each year. Structured at the project level rather than as a traditional equity raise, the agreement signals a move beyond pilot testing towards sustained operations.

While small relative to national climate targets, the facility is intended to demonstrate that next-generation direct air capture (DAC) systems can operate reliably and at costs capable of attracting infrastructure investors. Industry participants view such projects as essential to proving whether carbon removal can scale beyond demonstration plants.

Avnos is developing a process that captures carbon dioxide from ambient air while producing water as a byproduct. The company says the system reduces reliance on external heat and lowers energy use, with the aim of cutting operating costs and widening the range of potential sites. Greater flexibility could help developers secure access to storage and transport networks, which remain limited in many regions.

Shell and Mitsubishi Corporation are involved through an ongoing collaboration, building on earlier strategic support rather than representing a new standalone investment. The US Office of Naval Research is also backing the initiative. For Shell, the project forms part of a broader effort to expand its carbon management portfolio. Mitsubishi brings project development experience that could help translate early validation into larger-scale infrastructure.

Federal incentives, notably the 45Q tax credit, continue to underpin the economics of US carbon capture projects. Corporate demand for high-integrity carbon removal credits is also rising. However, long-term storage capacity and pipeline infrastructure remain constraints on wider deployment.

If Project Cedar meets its performance targets, Avnos could unlock additional financing tranches. The project will serve as an early test of whether disciplined capital can support a sector seeking to prove its commercial viability.