The United States Department of Energy (DOE) has launched a major initiative to combat climate change, offering up to $1.8bn in funding to support the development and commercialisation of direct air capture (DAC) technologies.
This move marks a significant step toward achieving large-scale carbon removal from the atmosphere, reinforcing America’s global competitiveness in clean energy and creating economic opportunities for communities nationwide.
What is direct air capture?
Direct air capture is an advanced climate technology designed to remove carbon dioxide (CO2) directly from the atmosphere.
Unlike traditional carbon capture methods that focus on emissions from industrial sources, DAC targets CO2 that has already been released, referred to as ‘legacy emissions.’ This makes DAC a critical tool for addressing historical contributions to climate change.
Direct air capture systems use chemical processes to capture CO2, which can then be stored underground in geological formations or utilised in products like concrete or synthetic fuels.
By providing a scalable solution to remove atmospheric carbon, DAC holds immense potential for mitigating the impacts of climate change and achieving net-zero emissions goals.
Regional DAC Hubs Program: Building a national network
The funding initiative is part of the DOE’s Regional DAC Hubs program, which aims to create a nationwide ecosystem of DAC facilities and supporting infrastructure.
These hubs are designed to foster collaboration between technology developers, industry stakeholders, and local communities, ensuring that DAC technologies can scale effectively.
The initiative’s first solicitation in August 2023 selected 21 projects for award negotiations, including two major hubs in Louisiana and Texas.
These projects span a range of development stages, from feasibility studies to front-end engineering and design (FEED) efforts, laying the groundwork for future DAC hubs.
Comprehensive funding opportunities
The $1.8bn funding opportunity focuses on mid- and large-scale commercial direct air capture facilities and complementary infrastructure platforms.
By addressing critical gaps in the commercialisation process, the funding aims to accelerate the transition from pilot projects to fully operational hubs.
Here’s a breakdown of the three primary funding areas:
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Infrastructure Access Platforms
Up to $250m per project is available to support 1-3 infrastructure access platforms. These host sites will provide DAC developers with access to clean energy and shared CO2 storage or utilisation solutions, reducing barriers to entry for emerging technologies.
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Mid-Scale Commercial DAC Facilities
This category will fund 4-8 mid-scale DAC facilities, each capable of capturing between 2,000 and 25,000 tons of CO2 annually.
With a maximum funding allocation of $50m per project, these facilities will help developers prove their technology and business models on a smaller scale before scaling up.
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Large-Scale Commercial DAC Facilities
Designed for larger operations, this category will fund 2-6 facilities with a minimum capture capacity of 25,000 tons of CO2 per year. Each project is eligible for up to $600m, supporting the transition to full-scale commercial operations.
The DOE intends to offer recurring funding opportunities to ensure that the DAC industry continues to innovate and expand. This sustained support will allow for the inclusion of next-generation DAC technologies and high-impact projects, fostering continuous growth and development.
Advancing climate solutions
The widespread deployment of direct air capture technologies represents a pivotal moment in the fight against climate change.
By addressing legacy emissions and supporting a robust network of DAC hubs, the US is paving the way for a cleaner, more sustainable future.
The initiative not only mitigates environmental impacts but also creates new jobs and economic opportunities for American communities and industries.
With this funding, the US takes a bold step toward achieving its climate goals and securing a sustainable future for generations to come.