The Strategist

US offers $3.5bn in grants for carbon dioxide capture and storage

04/21/2023 - 03:33

The US government has made funds totaling $3.5 billion available for the construction of facilities using the DAC (direct air capture) technology to remove carbon dioxide from the atmosphere and store it for later use.

Nick Humphries
Nick Humphries
Reuters claims that this is the greatest grant funding ever granted globally for this use. The newspaper notes that $124 million was allotted for the planning and building of DAC complexes in Great Britain.

In addition to funding, the American government will offer tax incentives worth $180 per tonne of atmospheric carbon dioxide removed to promote the development of DAC technology.

The US Department of Energy is providing three levels of funding through the grant program: $3 million for a project feasibility study, $12.5 million for technical design and calculations, and up to $500 million for projects that are in the construction and commissioning stages. The US government wants to eventually have four major centres for the storage and collection of carbon dioxide.

According to information obtained by Reuters, at least nine bids were made in the opening round. Two of these are significant Occidental Petroleum projects, and one is being undertaken by Climeworks of Switzerland, which has already achieved the successful deployment of the largest carbon dioxide capture facility in the world, followed by mineralization in Iceland. University of Illinois and University of California at Berkeley have submitted bids.