In a major, bold move to take on climate change, the U.S. Department of Energy, as part of the Biden-Harris Administration, said it will invest up to $1.8 billion to expand the development and infrastructure of Direct Air Capture (DAC) technologies. Funding is a critical component of the President’s Bipartisan Infrastructure Law that aims at scaling up the mid-to large-sized DAC projects and building Regional DAC Hubs. They directly capture carbon dioxide from the atmosphere targeting legacy emissions by which attaining the U.S. goal of net-zero carbon emissions by 2050 will be achieved.
Direct Air Capture: The Key Technology for Net-Zero Goals
Direct Air Capture: Direct Air Capture (DAC) becomes an essential component of the strategies put forward to curb the worst impacts of climate change. This happens when chemical processes are used to capture carbon dioxide directly from the air, and the CO2 can either be left to safely anchor underground or used to produce invaluable products, like carbon-containing concrete. On the contrary, DAC technologies can eliminate legacy emissions acquired over several decades from the atmosphere by preventing re-emission of CO2. In this manner, they are imperative to reaching long-term climate goals.
Estimation from the DOE indicates that net-zero carbon emissions by the end of 2050 would require the drawing of between 400 million and 1.8 billion metric tons of CO2 yearly from the atmosphere. The fresh funding by the Biden-Harris Administration is focused on commercialization and deployment of DAC technologies across the United States. It’s sure to support America’s leadership in clean energy transition.
Focus areas for funding: In the Mid- to Large-Scale DAC Projects and Infrastructure
To achieve this, the U.S. DOE intends to utilize the $1.8 billion to build mid- to large-scale DAC facilities plus the necessary infrastructure to make them operational. Released through the Office of Clean Energy Demonstrations within the DOE, the money will also accelerate the development of regional DAC hubs—that central locations around which CO2 capture and processing infrastructure will be sited. Funding is categorized under the following three broad areas:
1. Infrastructure Scaling Platforms: It will invest up to $250 million per project in building host sites that provide DAC developers with shared clean energy resources and CO2 processing infrastructure. As such, these platforms will form critical nodes that will escalate the scaling up of DAC technologies because multiple projects will share resources, thus making it cheaper and more scalable.
2. Mid-Scale DAC Facilities: The DOE plans to support 4-8 DAC facilities that will be able to capture between 2,000 and 25,000 metric tons of CO2 per annum. Each of those projects will have a maximum of $50 million. Mid-scale facilities are important demonstration activities of DAC at commercial scale before larger more extensive systems are planned.
3. Industrial scale DAC facilities Funding for 2 to 6 industrial scale DAC facilities with a capacity to capture more than 25,000 metric tonnes of CO2 per year. Each such facility would be able to draw up to $600 million in funding. As industrial scale facilities would capture massive amounts of CO2 per annum, they are expected to significantly offset the net goal.
The strict stipulation that must accompany all projects seeking funds is a 50% cost share of non-federal investment. This makes sure the federal support is complimented by private sector investment and furnishes public-private collaboration for innovation and scalability.
Strategic Goals and Long-Term Vision
Investing in DAC hubs aligns with the overall ambition of building a strong, lasting clean energy economy within the United States. The DOE incentivizes regional carbon capture activities through a system that encourages advances in hub development. The hubs are likely to be part of the overall carbon management infrastructure, along with carbon pipelines and permanent storage facilities.
Advancing DAC technology is a critical part of the strategy for the reduction of atmospheric CO2 levels and further stimulating innovation in CCS. Essentially, it makes DAC systems rather unusual, which enables them to address legacy emissions that are CO2 already in the atmosphere, as complementary efforts toward decarbonization, such as renewable energy transition and improvement of energy efficiency.
Future Opportunities and Industry Day
The solicitations for the first round of funding would be available in winter 2024 and will provide developers with the opportunity to apply for support at scale-up. The flexibility of the funding by the DOE would ensure developers utilize the most advanced systems available in order to position the selected projects for maximum impact.
The DOE will host an Industry Day in November 2024 to foster collaboration and provide detailed process guidance. Potential DAC developers, investors, and other stakeholders will have a chance to come together and discuss available project opportunities, drive partnership formation, and explore synergies in the still-evolving carbon capture sector.
Consecutive Releases: Building off Past Success
The latest award follows on from where DOE selected 21 projects, which included some for DAC Hubs in Louisiana and Texas, to submit to feasibility assessments and design studies that support future development of the DAC project. These pioneering studies laid down precursors for larger-scale projects that are now supported by this fresh funding.
With the roll out of support for DAC technologies continuing, the U.S. aims to lead the global wave in capturing and storing atmospheric carbon. Scaling facilities for DACs and building related infrastructure is one step closer toward the implementation of its net-zero carbon emission goal by mid-century while innovation in the clean energy sector is enhanced.