## US Department of Energy Pledges $1.2B for Carbon Removal Technology
The U.S. Department of Energy (DOE) is investing up to $1.2 billion in carbon removal technology as part of an ambitious effort to combat global warming. The funding, allocated through the Bipartisan Infrastructure Law, will be used to support two large-scale projects aimed at removing carbon dioxide from the atmosphere using Direct Air Capture (DAC) technology.
DAC is an emerging technology that uses giant vacuums to extract carbon from the air. While there are currently 18 DAC-related projects globally, the scale of these operations has been insufficient to significantly impact global warming. However, the new U.S.-based projects, one in Texas and another in Louisiana, aim to change this trajectory.
## DAC Hubs: Texas and Louisiana Projects
The two DAC hub projects are expected to remove more carbon per year than all existing projects combined. The captured carbon can then be stored underground or repurposed into building materials, agricultural products, and even manmade diamonds. Once operational, these hubs are projected to remove more than 2 million metric tons of carbon dioxide from the atmosphere annually. According to DOE Secretary Jennifer Granholm, this is equivalent to removing nearly half a million gas-powered cars from the roads.
The Texas hub is led by [Occidental Petroleum](https://www.cnbc.com/quotes/OXY/) and its subsidiary 1PointFive. They have leased 106,000 acres south of Corpus Christi for CO2 removal and storage. The hub is estimated to eventually store up to one billion metric tons of carbon in the ground and remove up to 30 million tons metric tons of CO2 per year once fully operational.
## Partnering Companies: Climeworks and Heirloom
The Louisiana hub is a joint venture by [Climeworks](https://www.cnbc.com/2021/07/23/these-companies-are-sucking-carbon-from-the-atmosphere.html) and [Heirloom](https://www.cnbc.com/2022/12/05/microsoft-backed-start-up-heirloom-uses-limestone-to-capture-co2.html). Zurich-based Climeworks currently operates the world’s largest DAC plant in Iceland, which removes about 4,000 tons of CO2 per year. California-based startup Heirloom, backed by $54 million from venture capital funds including [Breakthrough Energy](https://breakthroughenergy.org/our-work/breakthrough-energy-ventures/) and [Microsoft](https://www.cnbc.com/quotes/MSFT/), uses limestone to capture carbon from the air.
Both hubs will be powered by clean energy and are expected to create nearly 5,000 jobs. Additional funding for two more hubs is anticipated in the coming year, with the government committing up to $3.5 billion to carbon reduction technology overall.
## A Step Towards Paris Agreement Goals
While these new DAC hubs represent a significant step forward, much more remains to be done to achieve the target set by the Paris Agreement – limiting global warming to 1.5 degrees Celsius. To meet this goal, billions of tons of carbon would need to be removed each year by 2050, accounting for 10% to 20% of carbon emissions.
Original Story at www.cnbc.com – 2023-08-11 09:00:01
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