As we conclude this pivotal year, we remain committed to removing billions of tons of carbon dioxide from the air

2024 shattered global temperature records. Every single month saw global temperatures exceeding 1.5°C above pre-industrial levels. This wasn't an isolated spike – each of the past ten years rank among the warmest on record, painting a clear picture of our rapidly warming planet. Our climate crisis is no longer a future threat; it's unfolding before our eyes with unprecedented speed.

That’s the grim news. The more hopeful outlook is the momentum we’re seeing in global policy and corporate action around carbon removal – which is the only solution capable of turning back the clock on global warming. Japan has announced that its emissions trading scheme, which becomes mandatory as early as 2026, will include CO2 removals. Under this framework, carbon removal technologies like Direct Air Capture (DAC) can be used to offset up to 5 percent of an entity's emissions – representing billions of dollars in annual demand from the world's fifth-largest emitter. Similarly, the European Union's Emissions Trading Scheme (ETS), which traded approximately 48 billion euros of allowances in 2023, is actively exploring the integration of CO2 removals. Both the EU ETS and UK ETS are in formal processes to determine how Direct Air Capture and other removal technologies will fit into these trading schemes, signaling growing recognition that carbon removal will be essential to turning back the clock and meeting climate targets.

At Heirloom, 2024 was marked by increasing progress in scaling our technology to meet this growing demand for carbon removal. We logged one year of operations at our facility in Tracy, California, generating valuable learnings and improvements that will be crucial as we build larger projects, including in Louisiana where we received the first funding allocation under the Department of Energy's Direct Air Capture Hub program.
Our momentum attracted $150 million in Series B funding from investors who recognize the critical role affordable carbon removal will play in addressing climate change. The participation of Japan Airlines, Mitsubishi, Mitsui, MOL, and Siemens – companies representing some of the world's most difficult to decarbonize industries – validates our approach to developing low-cost DAC technology. This investment provides us with the capital to advance technologies and process improvements that directly impact our cost profile, including increasing carbonation rates, expanding automation throughout our facilities, and reducing energy use.

Looking ahead to 2025, we're excited to continue this progress. We’ll share more detailed information about the technical and process improvements that are significantly driving down our costs; expand our partnerships with carbon removal buyers; and advance our announced projects. Most importantly, we'll maintain our relentless focus on what matters most: making carbon removal affordable enough to scale to make a meaningful climate impact.

As we close out this pivotal year, I'm more convinced than ever that we're on the right path. The urgency of the climate crisis, combined with growing policy support and technological progress, creates both the imperative and the opportunity to scale carbon removal to the levels our planet needs. Thank you for being part of our journey.