(WASHINGTON, D.C.) — The executive directors of two industry groups representing the top carbon removal companies in the United States — Giana Amador of the Carbon Removal Allianceopens in a new tab and Ben Rubin of the Carbon Business Councilopens in a new tab — released the following statement in response to reports that the Department of Energy’s may move to eliminate funding for the Direct Air Capture Hubs in Louisiana and South Texas:
“Today’s news that a decision to cancel lawfully-designated funding for the TA-3 Direct Air Capture Hubs (DAC Hubs) could come soon risks handing a win to competitors abroad and undermines the commitments made to businesses, communities, and leaders in Louisiana and South Texas. Local economies were poised to benefit from billions of dollars in economic investment and thousands of in-demand jobs, and in the face of potential cuts, state and local leaders worked to educate the Department of Energy on the negative impacts of withdrawing support for the DAC Hubs.
“Carbon removal is essential to meeting our climate targets and fueling energy security — that's why it's the world’s next trillion-dollar industry. The U.S. is home to hundreds of carbon removal companies, but other countries are catching up fast.
- China has announced 37 domestic carbon management and removal projects by 2030.
- Canada offers a 60% investment tax credit for DAC projects.
- The United Kingdom provides capital grants covering up to half of DAC construction costs that are paired with long-term revenue contracts.
- Germany committed $578 million to carbon removal, and
- Japan has carved out DAC within its emissions trading system and provides 20% equity support for foreign projects.
"The U.S. DAC Hubs program, with $3.5 billion appropriated by Congress, was set to support the largest carbon removal facilities in the world and were intended to further establish American leadership in the sector. If funding for the TA-3 Hubs is cut, the door will be open for other countries to take up leadership of the industry, and claim the job creation and economic benefits of carbon removal.
“Federal, state, and local leaders have stepped up to the plate to preserve the Hubs. Louisiana Secretary for Economic Development, Susan Bonnett Bourgeois, sent a letter to the state’s congressional delegationopens in a new tab calling for the Hubs to be protected. On the impact of the DAC Hubs award in Louisiana, Governor Jeff Landryopens in a new tab saidopens in a new tab, ‘The expansion of Project Cypress Direct Air Capture Hub across the State represents the best of Louisiana — cutting edge technology at the forefront of the energy economy, powered by innovation and a broad base of highly skilled workers.’ In addition, Senator Bill Cassidyopens in a new tab saidopens in a new tab, ‘We're the pro-business party. So anytime an entity has made a significant investment, you don't pull the rug out from underneath their feet,’ and ‘The [Direct Air Capture] technology being invested in has the ability to bring a lot of jobs to my state.’ Support from leaders like Sen. Cassidy and Gov. Landry will be key to unlocking the next wave of jobs and investment in this emerging industry.
“We are committed to working with policymakers at every level to secure America’s role in building this industry. Together, we can help provide the necessary environment for American carbon removal businesses to thrive, while creating jobs, supporting our climate goals, and driving benefits for communities across the country.”
TA-3 DAC Hubs quick facts:
What is DAC? Direct Air Capture (DAC) is a technology that removes carbon dioxide directly from the atmosphere. This technology plays a pivotal role in addressing climate change by reducing the amount of carbon dioxide in the atmosphere.
What are DAC Hubs? The Direct Air Capture Hubs are large-scale carbon removal facilities being developed across the U.S., including the TA-3 Hubs in Louisiana and South Texas. These Hubs are part of the U.S. government’s Regional DAC Hubs Program, which is designed to support the scaling of DAC technology. Funded by the Department of Energy (DOE), these facilities aim to capture millions of metric tons of carbon dioxide annually.
What is planned for the Louisiana DAC Hub? Climeworks and Heirloom plan to bring approximately 2,300 jobs and a total investment of $1.0 to $1.7 billion spanning western Louisiana, including the district represented by Speaker Mike Johnson. By 2035, the direct air capture (DAC) industry could employ opens in a new tab55,000+ people in Louisianaopens in a new tab, a state with workers skilled in oil and gas operations, according to Rhodium Group. By 2050, DAC investment and operations alone could provide over 106,000 jobs in Louisiana. Louisiana's Secretary for Economic Development, Susan Bonnett Bourgeois, opens in a new tabwrote a letter to the state's U.S. senators and representativesopens in a new tab urging them to protect the DAC Hubs program, stating: “I urge you to contact DOE Secretary Chris Wright and ask him to take every necessary step to advance this critically-needed federal grant."
What is planned for the Texas DAC Hub? Occidental Petroleum is bringing opens in a new tab2,000 jobs and a total investment of $1.3 to $2 billionopens in a new tab to South Texas, where their DAC Hub is being developed. By 2035, the DAC industry could employ opens in a new tab200,000+ people in Texasopens in a new tab, according to Rhodium.
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About the Carbon Removal Alliance
The Carbon Removal Allianceopens in a new tab is a nonprofit, nonpartisan coalition building a carbon removal industry ready to reach gigaton scale by bringing innovators and policymakers together and putting quality at the center of our work. Our team comprises respected leaders in the carbon removal space, with deep expertise in public policy and affairs, communications, climate science, and emerging technologies. Our more than 25 member companies represent a diverse range of carbon removal pathways and are responsible for virtually all of the permanent carbon removal to date. United together — innovative companies, buyers, and experts — we’re ready to bring the world into the carbon removal era.
About the Carbon Business Council
The Carbon Business Councilopens in a new tab (CO2BC) is a coalition representing more than 100 carbon management companies across all major pathways who are united to build a more prosperous planet. Our coalition accelerates market development across sectors and continents through ecosystem building, policy engagement, and public affairs.