The United States has committed to investing $1.2 billion in Direct Air Capture (DAC) projects spearheaded by Climeworks and Oxy.

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The US government is investing $1.2 billion in two direct air capture (DAC) projects led by Occidental Petroleum and Climeworks. DAC technology involves the use of large machines to remove carbon dioxide from the atmosphere. The projects, known as Project Cypress in Louisiana and a facility in Texas overseen by Occidental Petroleum’s subsidiary 1PointFive, alongside Carbon Engineering and Worley, will together remove over 2 million tons of CO2 from the atmosphere each year.
The move places the United States as the world leader in testing DAC technology as a climate change solution. It represents the first phase of the Department of Energy’s $3.5 billion funding program for developing DAC hubs. The funding is part of the Biden Administration’s efforts to support carbon removal technologies and achieve net-zero emissions goals.
The Energy Department has also rolled out several initiatives to bring down the cost of DAC technology. This includes a procurement program for carbon credits and grants for feasibility studies and engineering and design studies.
The two DAC plants awarded the funding have different scales and use different carbon removal technologies. The Louisiana DAC plant will employ technology from Climeworks and Heirloom, using solid sorbents and the natural carbon mineralization process. Occidental Petroleum’s facility in Texas will use Carbon Engineering’s DAC technology, which uses fans powered by solar energy to draw in air and liquid sorbents to capture carbon.
Critics argue that DAC is an expensive and energy-intensive method of carbon sequestration. However, proponents claim that DAC is necessary to achieve global climate goals and serves as a “backstop technology” in conjunction with natural carbon removal solutions. Other countries, including the EU, UK, and Canada, have also recently announced funding support for DAC technology.

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