Google has signed a major deal with Holocene, a Direct Air Capture (DAC) technology company, for 100,000 tons of carbon credits. The agreement includes a minimum $100/ton fee for DAC-based carbon removal. Required by the International Energy Agency (IEA) to achieve net neutrality, DAC technology removes CO2 directly from the atmosphere. The captured carbon dioxide can be stored as a raw material or permanently, a necessary process that is essential to meet the climate levels set by the Intergovernmental Panel on Climate Change (IPCC ). Holocene, built in 2022 and based in Knoxville, Tennessee, offers a scalable DAC solution that uses amino acids and other organic compounds to capture CO2. The CO2 is oxidized and heated to form a clean stream suitable for transportation and underground storage. This innovative approach is seen as a major step forward in reducing the costs associated with carbon removal. Randy Spock, Google’s director of carbon acquisitions and acquisitions, emphasized the importance of this partnership in Google’s overall strategy to achieve zero cost. This agreement is an important step towards strengthening DAC technology by reducing costs. Factors lowering the price include Holocene’s liquid-solid hybrid systems, Google’s early financial support and a commitment to accept credit from even the smallest Holocene installations that come online early of the 2030s.
Additionally, Holocene’s projects are eligible for the U.S. government’s 45Q tax credit, which offers $180 per ton of carbon removed, further supporting cost reduction. Spock noted that while DAC technology is still developing, the partnership with Holocene addresses one of the major barriers: high costs. The deal follows Google’s March announcement of a commitment to purchase at least $35 million worth of carbon removal credits over the next year. This commitment aligns with the U.S. Department of Energy’s initiative to scale the carbon removal sector by funding innovative technologies. The agreement highlights Google’s ongoing efforts to decarbonize its operations and support advancements in carbon removal technologies, signaling a promising step forward in the global fight against climate change.