Fukuoka startup secures funding to scale direct air capture technology

Fukuoka-based climate technology startup Carbon Xtract Co. completed the first close of its Pre-Series A funding round through a third-party allotment of shares. Lead investor Femto Partners, alongside GxPartners, Kyushu University, and co-founders Tetsuo Moriyama and Shigeki Fujikawa, participated in the allocation. The transaction restructures the company’s shareholding, placing majority voting control into the hands of executive management to accelerate operational decisions.

Established in May 2023, Carbon Xtract commercialises m-DAC®, a proprietary membrane-based direct air capture system developed at Kyushu University. Unlike traditional direct air capture systems that rely on high thermal energy to release captured carbon dioxide, the technology filters ambient air through specialised separation membranes. The compact equipment functions similarly to an air purifier, enabling decentralised installation at local industrial or commercial sites.

The capital injection will finance field demonstration trials and the setup of mass production facilities for the m-DAC® units. Carbon Xtract also plans to expand its headcount across research, development, and business management. A second close of the Pre-Series A funding round is scheduled for completion by the end of 2026. While trading firm Sojitz Corporation previously provided foundational business development support, it will maintain its role as an operational partner focusing on market entry and commercial deployment.

Currently, direct air capture technologies is an evolving innovation for addressing atmospheric carbon accumulation, while high energy costs and rigid infrastructural demands hinder adoption.