Skytree will advance work on its first Skypark project in Iceland with a newly secured $1.1 million (€1 million) development loan from Invest International.

The financial support will go towards the project’s engineering, permitting, site preparation studies and the conversion of offtake letters of intent into binding contracts.

This new Skypark project follows the model already deployed by Skytree in the Netherlands, as part of a joint venture with Lingezegen Energy. 

Skyparks are Skytree’s regional Direct Air Capture (DAC) hub model that offers CO2-as-a-service. These ambitious projects bring together a site and energy partner, capital providers, and local CO2 offtakers, establishing and running a regional CO2 supply hub.

The projects in the Netherlands and in Iceland are part of Skytree’s wider pipeline of similar Skypark projects which the company is developing internationally.

The Skypark in Iceland will leverage the country’s abundant geothermal energy to supply both renewable electricity and heat for DAC operations. With this project, Skytree will unlock a regional carbon dioxide supply in a market that currently mostly relies on imported CO2. 

While harmful when accumulated in excessive amounts in the atmosphere, captured pure CO2 is actually a valuable material in many industries, including for greenhouse growers, food and beverage producers, and dry ice and food packaging companies. 

Conventionally, this CO2 is sourced as a by-product of ammonia production, oil refineries, and various industrial processes. However, with industrial emitters prioritizing its underground storage and rising transportation costs and geopolitical tensions, this material is becoming increasingly challenging to secure.

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