Hybrid direct air capture (DAC) startup Avnos has raised up to $17 million from Mitsubishi Corporation and Shell’s U.S. gas and power business to construct its first commercial-scale facility capable of extracting both carbon dioxide and water from the atmosphere.
The New Jersey-based company said the new plant, expected to come online by the end of 2026, will capture 3,000 tonnes of CO₂ and generate 6,000 tonnes of clean water annually. The facility will house four hybrid DAC systems at a U.S. site yet to be disclosed.
Avnos’ “hybrid DAC” (HDAC) system differs from conventional DAC technologies, which are often energy- and water-intensive due to their reliance on heat-based processes. Instead, Avnos uses a moisture-based absorbent that eliminates the need for thermal energy and produces clean water as a by-product.
“This collaboration validates that Avnos’ HDAC technology can deliver carbon removal under real-world conditions, without the heat and water constraints that limit conventional DAC,” said Avnos Chief Executive Will Kain. “We’re building a replicable blueprint to scale HDAC worldwide.”
The latest investment follows Shell’s earlier involvement in Avnos’ $80 million multi-year strategic partnership in 2023 alongside ConocoPhillips and JetBlue. In February 2024, Avnos also completed a $36 million funding round led by NextEra Energy Resources, joined by Shell, Safran Group’s venture arm, Envisioning Partners, and Rusheen Capital Management.
The company began operations on a demonstration unit earlier this year in Bridgewater, New Jersey, funded by the U.S. Office of Naval Research. With Thursday’s announcement, Avnos said it has now secured access to more than $100 million in combined public and private financing.
Kain said the new facility represents “proof that carbon removal can be real, repeatable and scalable,” underscoring the potential for the technology to help meet global decarbonisation goals.
