Octavia Carbon Raises $5M to Scale Carbon Capture Technology in Kenya

Octavia Carbon to expand Direct Air Capture operations, targeting CO2 storage in Kenya's Rift Valley

As climate change accelerates and demands for environmental solutions grow, Direct Air Capture (DAC) technologies are emerging globally to combat rising carbon dioxide (CO2) levels in the atmosphere. One such company, Octavia Carbon, based in Kenya, is leading the charge in Africa, developing technologies to capture CO2 from the air and store it underground, helping mitigate global warming.

Founded in 2022 by Martin Freimüller and Duncan Kariuki, Octavia Carbon has quickly established itself as a pioneer in the African climate tech landscape. The company recently closed a $5 million seed round, led by Lateral Frontier and E4E Africa, with additional participation from Catalyst Fund, Launch Africa, Fondation Botnar, and Renew Capital. This funding will enable Octavia to scale its operations and establish a full-scale Direct Air Capture storage plant in Kenya’s Rift Valley.

A Direct Air Capture Pioneer in Africa

Octavia Carbon’s core mission is to address the rising concentration of CO2 in the atmosphere, a leading driver of climate change. Using DAC technology, the company captures CO2 from the air, liquefies it, and stores it underground in porous volcanic rock formations. This method turns CO2 into rock, effectively locking it away and preventing its release back into the atmosphere.

Freimüller, the startup’s CEO, explains that the geology of Kenya’s Rift Valley, with its abundant porous basalt rocks, is uniquely suited for storing CO2. “Kenya is really unique in having the East African Rift Valley, and that is really important for two reasons. The geology is great because it has porous volcanic rocks—specifically basalts—that can store CO2 underground. The capacity of that geology is huge,” he said. The region’s volcanic rocks are rich in calcium and magnesium, which naturally react with CO2 to form carbonate minerals such as limestone. This natural process, which typically takes thousands of years, is accelerated by Octavia’s technology, allowing for more immediate and effective carbon sequestration.

Leveraging Renewable Energy for Carbon Capture

One of the key challenges in scaling DAC technology globally is the high energy consumption required to capture and process CO2 from the air. However, Octavia Carbon has a strategic advantage in Kenya, thanks to the country’s abundant renewable energy resources, particularly geothermal energy. Freimüller notes that using renewable energy, especially waste heat from geothermal plants, drastically reduces the operational costs of their DAC systems. This gives Octavia a competitive edge over similar companies operating in regions that rely on fossil fuels and have to buy renewable energy credits to offset their carbon footprint.

The use of renewable energy allows Octavia to capture CO2 more sustainably, aligning with global efforts to transition to cleaner energy sources. The company currently operates two DAC machines with a total capture capacity of 50 tonnes of CO2 per year but plans to significantly increase this figure. By 2025, with the opening of a new storage site operated by partner company Cella Mineral Storage, Octavia aims to reach a capture capacity of 1,500 tonnes annually.

Scaling Operations and Future Plans

Octavia Carbon’s recent $5 million seed funding will support its ambitious growth plans. The company intends to scale its carbon capture operations beyond its current capacity, increase research and development efforts, and expand its reach into the global carbon removal market. A key part of its business model involves selling carbon credits to corporations looking to offset their carbon emissions. These carbon credits represent verified reductions in atmospheric CO2 and are highly sought after by businesses aiming to meet sustainability targets.

Octavia’s carbon credits have already attracted significant interest, with the company pre-selling 2,000 tonnes of CO2 credits, generating over $1 million in revenue. As the company scales, it aims to reduce the cost of capturing one tonne of CO2 from its current range of $680 to $820 down to around $100 per tonne, which would dramatically improve its margins and make DAC technology more commercially viable.

“We’ve been developing the tech, and now we’re taking it out of the lab for carbon removal at scale in the field,” said Freimüller. “Once we have that liquid CO2, we give it to our storage partner, and they inject it underground at high pressures to seep into volcanic rock pores. It’s a naturally occurring process, and we’re just accelerating it in areas where it hasn’t really happened over long periods.”

Octavia Carbon is positioned to play a crucial role in the global effort to reduce atmospheric CO2 levels. As one of only 18 companies worldwide deploying DAC technology, it joins industry leaders like Climeworks and Carbon Engineering in developing machines that directly capture CO2 from the air. What sets Octavia apart, however, is its ability to harness Kenya’s geothermal energy resources, significantly lowering the cost and environmental impact of its operations.

As the world moves toward net-zero emissions by 2050, technologies like DAC will be essential for removing the remaining carbon dioxide from the atmosphere. Octavia Carbon’s successful seed round, innovative use of geothermal energy, and plans to scale its operations underscore the growing demand for effective climate solutions and the startup’s potential to become a global player in the fight against climate change.