dac funding

DOE deploys more than $10M into Houston-related carbon capture projects

Four direct air capture projects with ties to Houston just received federal funding. Photo via Getty Images

Four carbon capture projects with ties to the Houston area have collectively received more than $10 million in funding from the U.S. Department of Energy.

What follows is a funding rundown for the four direct air capture (DAC) projects. DAC pulls carbon dioxide emissions from the atmosphere at any location, while carbon capture generally is done where the emissions happen.

This funding announcement comes on the heels of a subsidiary of Houston-based Occidental receiving about $600 million from the Department of Energy (DOE) for establishment of a DAC hub in South Texas.

Western Regional Direct Air Hub

Houston-based Chevron New Energies, the low-carbon subsidiary of energy giant Chevron USA, is collecting nearly $5 million in funding — $3 million of it from the DOE — for a potential DAC hub in the Bakersfield, California, area.

Chevron says it plans to install equipment at its cogeneration plant in Central California’s San Joaquin Valley so it can inject and permanently store carbon dioxide emissions underground. This is Chevron’s first carbon capture and storage project.

A cogeneration plant produces several forms of energy from a single fuel source.

Last year, Chevron was the lead investor in a $381 million series E funding round for Svante, a Canada-based producer of carbon capture technology.

“Several carbon capture technologies exist today, and they all have important roles to play in addressing the diverse requirements of hard-to-avoid emissions,” Claude Letourneau, president and CEO of Svante, said in a June 2023 announcement about the Central California DAC hub.

Pelican-Gulf Coast Carbon Removal project

Louisiana State University in Baton Rouge has attracted nearly $4.9 million in funding — including nearly $3 million from the DOE — for the proposed Pelican-Gulf Coast Carbon Removal project in the Pelican State. Partners in the Pelican project include the University of Houston and Shell, whose U.S. headquarters is in Houston.

The DAC project would remove CO2 in the atmosphere and permanently store it underground.

Red Rocks DAC Hub

Houston-based Fervo Energy is earmarking earmark its nearly $3.6 million in funding — including almost $2.9 million from the DOE — for development of the Red Rocks DAC Hub in southwest Utah.

Fervo believes more than 10 gigawatts of geothermal resources are available in southwest Utah that would translate into the potential storage of up to 100 million tons of CO2 each year.

“Scaling DAC technology will require abundant clean, firm power and heat to build truly carbon-negative projects,” Fervo says in a LinkedIn post. “As the leader in next-generation geothermal, Fervo is well positioned to support and accelerate the commercial deployment of DAC, while placing Utah at the heart of the energy transition.”

Houston Area DAC Hub

GE Research, the Niskayuna, New York-based R&D arm of General Electric, has scooped up more than $3.3 million in funding — including over $2.5 million from the DOE — to explore creating a DAC hub in the Houston area that would involve clean energy, such as renewable or nuclear power.

The project, being developed in conjunction with Omaha, Nebraska-based energy company Tenaska, would be designed to remove 1 million metric tons of CO2 from the air and permanently store it or use it in a value-add project (or both). Tenaska opened an office in Houston in 2019.

“We know that to truly bring an economical, commercial-scale solution in DAC to the market, it will require a collaborative effort with government, industry, and academic partners,” David Moore, leader of GE’s carbon capture team, said in March 2023. “If we do this right, we could have a commercially deployable DAC solution around the end of this decade.”

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A View From HETI

The report concludes that natural gas would need to remain a “foundational component of the region’s energy system” to meet the demands of AI data centers. Photo courtesy UH

A new study from the University of Houston estimates that the U.S. will need more than $1 trillion in new midstream energy infrastructure investment by 2052 to meet the rising energy demands from data centers in the age of artificial intelligence.

According to the report, this would average $40 billion to $48 billion per year across investments in natural gas, oil, natural gas liquids, hydrogen and CO2 infrastructure.

UH, in collaboration with the INGAA Foundation and Wood and ESMIA Consultants, released the 2025 North American Midstream Infrastructure Report, which details the needs, pipelines and associated infrastructure necessary to meet global market needs and increased energy demands. UH led the consortium that conducted the analysis. Paul Doucette, hydrogen program officer at UH, served as the principal investigator of the report.

According to the U.S. Department of Energy, data center energy consumption could reach 800 terawatt-hours annually by 2050, a roughly 167 percent increase from 300 terawatt-hours in 2025. Meanwhile, electricity generation from all energy sources is projected to reach 5,858 terawatt-hours in 2052, a 27 percent increase over current levels.

The report proposes two routes to meeting this level of demand.

The first scenario is a reference case based on current federal, state and provincial policies as of April 1, 2025. The second option presents a low-carbon scenario. The report concludes that natural gas would need to remain a “foundational component of the region’s energy system” in both scenarios.

“Meeting energy demand is a critical challenge right now, and this report quantifies the necessary midstream infrastructure and corresponding development dollars needed to meet that demand,” Hebe Shaw, executive director of the INGAA Foundation, said in a news release. “Meeting the energy needs of North America will require sustained investment and development, which must begin now to ensure a safe, reliable and affordable energy system.”

The report also identified several key midstream infrastructure requirements, including:

  • 103,000 miles of new natural gas gathering pipelines
  • 37,000 miles of additional natural gas transmission pipelines, which includes approximately 33,800 miles in the United States
  • 24 million jobs over 25 years

The report adds that hydrogen, carbon capture, utilization, and storage (CCUS), and other decarbonization strategies can help meet infrastructure needs.

UH released a condensed version of the report here.

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