Skytree lands €1 million loan to build first Iceland carbon-capture hub
What's the deal? Skytree has secured a €1 million ($1.1 million) development loan from Invest InternationalDealroom has a profile for this one. Try Dealroom → to build its first Skypark project in Iceland. The money will fund engineering, permitting, site preparation studies, and the conversion of offtake letters of intent into binding contracts.
What's a Skypark? It's Skytree's regional direct air capture (DAC) hub model, which offers CO2-as-a-service. Each hub brings together a site and energy partner, capital providers, and local CO2 buyers to run a regional supply operation.
Why Iceland? The project will tap the country's geothermal energy for the renewable electricity and heat that DAC operations require. Skytree aims to unlock a local carbon dioxide supply in a market that currently relies mostly on imports.
The Iceland project follows a model Skytree already deployed in the Netherlands through a joint venture with Lingezegen EnergyDealroom has a profile for this one. Try Dealroom →. Both sit within a wider pipeline of Skypark projects the company is developing internationally.
Why now? Captured CO2 is a valuable input for greenhouse growers, food and beverage producers, and dry ice and packaging firms. That material is getting harder to secure as industrial emitters prioritise underground storage and face rising transport costs and geopolitical tensions.
What's the timeline? Development and site preparation run through 2026 and 2027. DAC installation and commercial operations are both expected in 2028.
What they're saying: "The real story here isn't one project — it's that the model travels," said Camille Hanna, VP Skyparks at Skytree. "Wherever we find clustered industrial demand for CO2, cost-effective renewable energy, and customers tired of price spikes and supply interruptions, we can build a Skypark."
The signal: Skytree is betting that carbon capture pays off faster as a regional supply business than as a climate play alone. By anchoring projects to long-term offtake contracts and local demand, it's pitching DAC as infrastructure rather than offset.
Read more: carbonherald.com
Image credit: Generated with Gemini
