California-based climate tech company CarbonCapture has announced it will pause its Wyoming-based Project Bison, a large-scale Direct Air Capture (DAC) carbon removal project, due to growing competition for renewable energy in the state from data center operators. Founded in 2019, CarbonCapture specializes in DAC machines that use solid sorbents to absorb CO2 from the atmosphere. Their modular and upgradeable systems allow for next-generation sorbents to be integrated over time, reducing costs without needing new facilities. In partnership with Frontier Carbon Solutions, CarbonCapture planned to develop the Wyoming facility in phases through 2030, aiming for a carbon capture and storage capacity of 5 million tons annually. However, CEO Adrian Corless highlighted that securing affordable clean energy and carbon storage infrastructure is crucial for scaling DAC technology. The company faced sudden competition for white power from growing data centers, so it decided to scrap Project Bison and find a new location for the first project of its kind. Corless pointed to intense data center competition due to the growing AI needs of major tech companies such as Microsoft, Google and Amazon, which has increased sales of clean energy. In March 2024, CarbonCapture raised $80 million in Series A funding to develop and deliver its DAC systems.
The company has signed $26 million in carbon credits, including permits to remove more than 55,000 tons of CO2. It should be noted that Microsoft and Amazon are the primary buyers of these carbon credits from CarbonCapture projects. The company confirmed to customers that the first credits will be completed through a commercial pilot of 2,000 tons per year, four Leo Series units, which will be delivered early next year. More information about this pilot will be released in the coming months. Project Bison was also selected for $12.5 million in funding from the US Department of Energy (DOE). CarbonCapture is discussing with the DOE whether this fund can be moved to a new location. DAC technology, which captures carbon dioxide directly from the atmosphere for permanent use or storage, is considered a critical tool for achieving zero cost. According to the Intergovernmental Panel on Climate Change (IPCC), limiting global warming to 1.5 °C would require carbon removal processes, including DAC, to reach billions of tons per year in in the coming decades.