Heirloom has already secured a significant portion of its capacity for two upcoming projects in the state, having pre-sold capabilities to prominent partners including JPMorgan Chase, Klarna, Meta, Microsoft, and Stripe.
OCCIDENTAL’S FIRST INDUSTRIAL-SCALE DAC FACILITY, IN ECOTR COUNTY, TEXAS, IS EXPECTED TO RETURN TO SERVICE NEXT YEAR AFTER A MAJOR OVERHAUL. OnePointFive, a subsidiary of the corporation, is experiencing rapid growth, having partnered with influential players including Microsoft and Trafigura to explore opportunities.
The corporation failed to respond to inquiries about its plans for securing deals related to the DAC Hubs-funded initiative. Accordingly, Michael Avery, president of 1PointFive, remarked confidently: “We’re continuing to witness increasing recognition and enthusiasm for resilient carbon capture solutions, such as direct air capture, to address remaining emissions across various sectors.”
In its final month, the Department of Energy’s Office of Clean Energy Demonstrations is poised to disburse up to $1.6 billion to multiple Direct Air Capture (DAC) facilities, as well as the supporting infrastructure that may include roads, bridges, and pipelines.
Significantly shrinking the scope of eligible amenities, the company reduced the size of those that could potentially qualify for a second round of grant funding. The company stated it may likely seek “medium-scale” projects capable of removing 2,000 to 25,000 metric tons of carbon dioxide annually, as well as “large-scale” initiatives that would capture at least 25,000 tons. The initiative further stated its intention to allocate a portion of the residual funds “to facilitate current and prospective recipients in overcoming critical hurdles or core business difficulties that extend beyond the award’s specific scope and financial provisions.”
Industry watchers inferred a heightened sense of urgency from this statement, suggesting that companies were seriously considering escalating efforts to provide additional support for carbon dioxide removal (CDR) initiatives. The potential for direct authorities procurement to drive large-scale carbon reductions lies in its ability to acquire significant quantities of emissions credits that can be applied towards national goals under the Paris climate agreement, or leveraged through federal subsidies to offset the cost of corporate purchases.
Andreasen and Amador urged the Department of Energy to dedicate at least $500 million, out of a total $3.5 billion, to support these initiatives. Repurposing funds through the DAC Hubs program could lead to building fewer or smaller vegetation projects, but it may increase the likelihood of success for those that are developed.
A public good?
While Breakthrough Power presents itself as a neutral entity, its true nature remains shrouded in uncertainty. The enterprise division of the group has made significant strides in its carbon elimination business. It’s not uncommon for a business coalition, akin to the Carbon Removal Alliance, to urge governments to grant tax incentives, subsidies, or other forms of federal support to its member companies.
The US provides crucial support to businesses through the DAC Hubs initiative, including a $20 per ton subsidy for every ton of carbon dioxide captured and stored beneath the earth’s surface via direct-air-capture plants?
The U.S. Department of Energy’s Office of Fossil Fuel and Carbon Management has launched a pilot initiative to directly purchase carbon removal technologies last year, with $35 million in available financing. In May, 24 semifinalists were selected for acquisition contracts, alongside companies like Climeworks, Ebb Carbon, and others. To accelerate our sustainability goals, we aim to select up to 10 companies that can secure as much as $3 million by selling their share of captured carbon dioxide, which will be transported and utilized.
