California Takes the Lead with $11.8 Million Funding for First-Ever Direct Air Capture Hub

A groundbreaking venture is poised to revolutionize California’s carbon reduction efforts. The potential to eliminate over 1 million metric tons of carbon dioxide annually looms as a consortium of organizations, led by utility Southern California Gas Company (SoCalGas), secures up to $11.8 million in funding from the U.S. Department of Energy (DOE). Their audacious goal? To establish California’s first full-scale direct air capture and storage network of hubs.

This pivotal funding aims to propel the development of a regional carbon management hub in Kern County, California. Following the successful realization of this prototype, the consortium envisions replicating similar facilities across the state. With representation from nearly 40 organizations spanning industry, government, technology, labor, and workforce development, this collaborative effort signifies a convergence of expertise and vision.

The projected impact of this visionary hub is nothing short of remarkable. Its potential to extract more than 1 million metric tons of carbon dioxide annually equates to eradicating the emissions of 220,000 gasoline-powered vehicles on the road each year. Beyond its significant strides towards California’s climate targets, the creation of each hub promises to deliver a two-fold benefit: the cultivation of high-paying permanent jobs and the establishment of workforce development programs. This profound potential is championed by Carbon TerraVault Holdings, a subsidiary of the California Resources Corporation, which masterminded the consortium.

The timeline for hub deployment hinges on the receipt of subsequent DOE funding for the stages of development and construction. As Richard Venn, spokesperson for the California Resources Corporation, noted, the operational trajectory will be influenced by these vital funding allocations.

Direct air capture technology, while in its nascent stage, presents a transformative opportunity for states and regions to invest in a new era of clean technology. It’s a technology capable of extracting carbon dioxide from the atmosphere, either storing it permanently underground or utilizing it in carbon-containing products like concrete. A global movement is underway, with at least 27 direct air capture plants commissioned worldwide and plans for another 130 facilities in various stages of development, as reported by the International Energy Agency.

California’s funding infusion is part of a comprehensive DOE initiative to champion engineered carbon removal. A recent announcement revealed a commitment of up to $1.2 billion to establish two commercial-scale direct air capture facilities in Texas and Louisiana. These facilities are projected to collectively eliminate over 2 million metric tons of carbon dioxide emissions annually. U.S. Secretary of Energy, Jennifer Granholm, recognizes the pivotal role these investments play in shaping a direct air capture industry that’s indispensable for addressing climate change.

As Granholm aptly states, “Cutting back on our carbon emissions alone won’t reverse the growing impacts of climate change; we also need to remove the CO2 that we’ve already put in the atmosphere…”

The DOE’s unwavering commitment extends to 19 additional projects, including the Kern County hub, which are poised to receive support in the formative stages of project development, including feasibility assessments.

Maryam Brown, president of SoCalGas, underscores the importance of carbon management, alongside electrification and clean fuels, in charting a viable path to carbon neutrality. SoCalGas plays a vital role, conducting a front-end engineering design study focused on transporting captured carbon to permanent storage.

With DOE funding earmarked for 2024 to conduct studies on the planned facilities in Kern County, the stage is set for a transformative journey. The consortium’s sights are set on initiating facility development and construction in 2025, accompanied by additional funding requests next year. The road ahead is one of promise, potential, and the power to shape a greener, more sustainable future for California and beyond.