Low-carbon heat sources for DAC: What to expect from new U.S. DOE-funded projects?

May 20, 2022 | Case Study

Direct air capture (DAC) is a key piece of the U.S. climate strategy. In addition to a rapidly growing private sector that spans new entrants and significant investments, government support plays a strong role in propagating DAC adoption in the country. Under the Infrastructure and Jobs Act, the U.S. Department of Energy (DOE) allocated USD 6.5 billion for carbon management over the next several years, 56% of which targets DAC. The U.S. DOE will provide:

  • USD 3.5 billion to develop four DAC hubs, each with a CO2-capture capacity of at least 1 Mtonne/a
  • USD 115 million for DAC technology competitions (USD 100 million for commercial technologies and USD 15 million for precommercial technologies)

Funding for DAC projects traditionally targets material development and scale up, but the first DAC projects to receive funding from the DOE assess DAC technologies colocated with different low-carbon heat sources. The studies are meant to provide a better understanding of new system costs and performance before implementing commercial-scale projects and help evaluate potential business cases for DAC.

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