Skytree has secured a $1.1 million (€1 million) development loan from Invest International to advance its first Skypark project in Iceland, the Amsterdam-based direct air capture (DAC) company confirmed.

The financing covers engineering, permitting, site preparation studies and the conversion of offtake letters of intent into binding contracts. Skytree will spend 2026 and 2027 on development and site work, with DAC installation and commercial operations targeted for 2028.

How does Iceland fit Skytree's regional hub model?

The Iceland site follows the template Skytree first established in the Netherlands through a joint venture with Lingezegen Energy. Skytree describes Skypark as a regional DAC hub that delivers CO2-as-a-service, bundling a site and energy partner, capital providers, and local CO2 offtakers into a single regional supply chain.

Iceland's geothermal resources will supply both renewable electricity and process heat for the DAC operations. Skytree framed the project as a way to build a regional CO2 supply in a market that currently depends heavily on imports.

Why is the local CO2 supply chain under pressure?

Captured CO2 feeds greenhouse growers, food and beverage producers, dry ice suppliers and food packaging companies. Most of this material historically entered the market as a byproduct of ammonia production, oil refining and other industrial processes.

Three structural shifts are tightening supply, according to industry reporting Skytree cited:

• Industrial emitters are prioritizing underground CO2 storage over venting.
• Transportation costs are climbing.
• Geopolitical disruptions have interrupted conventional supply routes.

The combination is pushing buyers toward locally produced alternatives.

What does the Invest International loan unlock?

Invest International's facility is sized for pre-construction work rather than full build-out. Skytree said the funding closes permitting, engineering and site studies while moving LOIs toward take-or-pay style contracts. The Iceland Skypark is one of several projects in the company's international Skypark pipeline, all structured around long-term offtake agreements and locally generated CO2.

Camille Hanna, VP Skyparks at Skytree, stated: "The real story here isn't one project — it's that the model travels. Wherever we find clustered industrial demand for CO2, cost-effective renewable energy, and customers tired of price spikes and supply interruptions, we can build a Skypark."

She added: "We have a pipeline of these projects across the globe, and each one follows the same playbook: long-term offtake contracts, stable pricing, and CO₂ that's produced locally instead of shipped in."

What milestones determine whether the 2028 start holds?

Three dated checkpoints will decide whether Iceland's first Skypark reaches commercial operations on schedule:

• 2026: Completion of development, engineering and permitting work.
• 2027: Site preparation phase.
• 2028: DAC unit installation followed by commissioning and commercial operations in the same year.

Converting the current offtake LOIs into binding contracts is the near-term gating item. Without those signed agreements, the bankable structure underpinning the Invest International facility does not move forward to construction financing.

A second gating factor is cost of capture relative to imported industrial-grade CO2 pricing. Skytree's business model depends on its delivered CO2 remaining competitive against conventional byproduct sources, particularly in food-grade and beverage-grade applications where purity specifications are strict.

The next regulatory milestone to watch is the Icelandic permitting pathway for CO2 handling and a DAC-specific facility license. Approval timelines in Iceland have not yet been disclosed by Skytree, and the company has not named a contracted EPC partner for the 2028 installation phase.