The hybrid direct air capture (HDAC) specialist Avnos has secured up to $17 million in phased project financing from Shell US Gas and Power, LLC and Mitsubishi Corporation (Americas) to build its flagship facility, “Project Cedar.”
Project Cedar is set to deploy four HDAC modules capable of capturing around 3,000 metric tons of CO₂ annually and producing more than 6,000 tons of clean water as a co-product, scheduled to start operations by end of 2026 in the U.S.
Avnos reports access to over $100 million in combined private and public funding to date, signalling investor confidence in carbon-removal infrastructure and the shift from pilot to commercial deployment.
Commercializing carbon removal
Avnos has secured up to $17 million in project financing from Shell US Gas and Power and Mitsubishi Corporation (Americas) to develop its first commercial-scale Hybrid Direct Air Capture (HDAC™) facility, Project Cedar. The funding extends both companies’ earlier strategic support following Avnos’ Series A investment round and will accelerate the shift from pilot testing to scalable carbon removal infrastructure.
Technology and deployment model
Unlike conventional direct air capture systems that require external heat and large volumes of water, Avnos’ HDAC design eliminates those inputs and instead generates clean water as a by-product of CO₂ capture. This water-positive architecture makes the technology more resource-efficient and deployable across a wider range of geographies. Project Cedar will include four HDAC modules designed to remove roughly 3,000 tons of CO₂ per year while producing more than 6,000 tons of clean water. The specific U.S. site will be announced at a later stage, with operations planned to begin by the end of 2026.
Investors and strategic partnerships
The participation of Shell and Mitsubishi demonstrates growing industrial interest in carbon removal beyond traditional carbon capture and storage (CCS). Both companies are supporting Avnos’ development of a commercially viable, repeatable model for large-scale carbon removal. With this new round, Avnos has secured access to over $100 million in combined private and public funding, positioning the company as a leading player in next-generation carbon management.
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Governance, policy and market implications
For C-suite and ESG leaders, the project raises important considerations. The water-positive design could expand DAC deployment potential in water-scarce regions, aligning with sustainability and resilience criteria. As direct air capture technologies mature, attention will increasingly turn to governance frameworks covering measurement, verification, and permanence. The involvement of Shell and Mitsubishi suggests that global energy players are integrating carbon removal into their broader decarbonisation portfolios, bridging innovation and policy priorities.
What investors and corporates should take away
Corporates assessing net-zero strategies should note that Avnos’ HDAC model aims for scalable, repeatable deployment rather than limited demonstration projects. The financing reflects rising investor confidence in commercially viable carbon removal infrastructure. For investors, HDAC’s water-generating capability offers diversified value streams, potentially relevant to sectors like utilities, data centres, and industrial cooling. Early engagement in resource-efficient carbon removal technologies could provide long-term strategic advantages as carbon markets and reporting standards evolve.
Global significance
While Project Cedar will be based in the U.S., its implications are international. The technology’s modularity and water-positive profile could unlock deployment opportunities in arid or industrializing regions, influencing how global climate finance flows toward carbon removal. As standards under initiatives such as the Science Based Targets initiative (SBTi) and Article 6 of the UNFCCC advance, Avnos’ model offers a case study in how private capital and industrial partnerships can accelerate credible, scalable carbon removal.
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