Direct air capture (DAC) technology developer Climeworks announced its plans to build a facility in southwest Louisiana as part of the Project Cypress DAC Hub. The company will mobilize an additional $50 million in private investment to match the initial $50 million in funding from the U.S. Department of Energy to create one of the world’s largest DAC hubs.
The company is expected to create 140 direct new jobs with an average annual salary of $123,000. Climeworks also estimates that the project will support 800 construction jobs. Louisiana Economic Development estimates that the project will result in 329 indirect new jobs, for a total of 469 new jobs in the Southwest Region.
“Louisiana has the keys to drive global growth, innovation and excellence in the energy sector now and for generations to come,” LED Secretary Susan B. Bourgeois said. “We are excited about the unique opportunity this project represents for the workers of southwest Louisiana, and look forward to working with Climeworks and our partners to make their vision a reality.”
The new facility, known as Project Cypress Southwest, is a joint effort between Climeworks and independent nonprofit science organization Battelle. It would be built on private land next to the Port of Vinton.
“Louisiana is of particular interest to us for several reasons,” Climeworks Chief Project Development Officer Daniel Nathan said. “The porous geology of the subsurface – which has been well-studied by the U.S. Geological Survey – provides extensive capacity for safe and permanent carbon dioxide storage. In addition, the state’s long history in manufacturing and industrial processes has made for a workforce ideal for supporting the needs of a Direct Air Capture hub – jobs that will be additive to the companies with a longstanding presence in the area.”
DAC technology extracts CO2 directly from the atmosphere at any location, differing from carbon capture which is generally carried out at the point of emissions. Climeworks is working to secure a service provider to transport and store the captured CO2 safely underground at a carbon sequestration site to be determined at a later date.
Climeworks expects to make a final investment decision and begin construction in Q3 of 2026. Production at the new DAC facility is anticipated to begin by the end of 2027.
To support the project in Calcasieu Parish, LED offered the company a competitive incentives package including the comprehensive workforce development solutions of LED FastStart. The company is also expected to participate in the state’s Industrial Tax Exemption and Quality Jobs programs.
“Climeworks is wielding a new solution to the ongoing issue of carbon dioxide and its effect,” Southwest Louisiana Economic Development Alliance President and CEO George Swift said. “Their direct air capture facility will not only mean 140 direct jobs but also hundreds of ancillary jobs and widespread economic ripples in the Vinton community. They are investing in Vinton today and their work also invests in the future of our region.”