Climate tech startup Vaulted Deep raises $32M to inject carbon-containing waste deep underground and combat carbon emissions
Carbon emissions are one of the major drivers of climate change, trapping heat in the atmosphere and fueling extreme weather, rising sea levels, and biodiversity loss. According to Bloomberg climate data, global energy-related CO₂ emissions rose by 1.1% in 2023, hitting a record high of 37.4 billion tons. This marks an increase of 410 million tons from 2022 levels.
Tackling this growing threat requires innovative approaches to reduce and offset emissions, and that’s where climate tech startup Vaulted Deep steps in. The company has developed a method to lock away planet-warming carbon by injecting carbon-containing waste deep underground, leveraging technology from the oil industry to address the problem at scale.
On Thursday, Vaulted Deep announced it had raised $32 million in venture capital funding to expand its operations, including a new site in Colorado. The funding round was led by Prelude Ventures, with participation from Lowercarbon Capital and other investors.
With the new funding, it plans to open additional sites, including one in Colorado, furthering its ability to sequester carbon at scale. The company currently generates revenue by providing waste disposal services alongside its carbon removal activities.
The year-old startup has caught the interest of both investors and carbon credit buyers with its efficient approach to carbon removal, using oilfield techniques to flush carbon-laden waste down wells, bypassing the lengthy development cycles and high costs of more experimental technologies.
Founded by Julia Reichelstein (CEO) and Omar Abou-Sayed (Executive Chairman), Vaulted Deep’s process is straightforward but powerful. The company collects organic waste—such as biosolids from municipal plants and livestock manure—and injects it about a mile underground at facilities in Los Angeles and Kansas.
“We’ve shown we can move quickly, offer carbon removals that are in demand, and get new sites operational,” Reichelstein said in a statement.
Vaulted Deep’s customers include Frontier, a coalition that evaluates new carbon removal technologies and coordinates purchases for companies like Alphabet, Stripe, Meta Platforms, and Shopify. Frontier has facilitated the purchase of credits for over 150,000 metric tons of carbon removal, with Vaulted Deep already contributing over 5,000 tons at a rate of just under $400 per metric ton.
Venture capitalist Matt Eggers of Prelude Ventures told Reuters that Vaulted’s approach is more advanced than many other young companies in the carbon removal space. However, he acknowledged that regulatory hurdles, such as permitting, could present challenges.
As the U.S. faces shifting political dynamics under the return of Donald Trump, some climate advocates worry that the federal climate agenda could lose momentum. Yet Frontier’s head of deployment, Hannah Bebbington, remains optimistic, highlighting bipartisan support for carbon removal projects, particularly in states that welcome the jobs and investment these projects bring.
With a market for voluntary carbon credits valued at $723 million in 2023, down from $2 billion in 2022 due to repeated controversies, the carbon removal industry faces both opportunities and challenges. Nonetheless, Vaulted Deep aims to expand rapidly in line with projected targets of 100 million tons by 2030 and 5 billion tons by 2050, filling a critical gap in the climate tech landscape.