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

ERock will provide equipment for 470 megawatts of capacity to Anthropic. Photo courtesy ERock

Two months after its $400 million IPO, Houston-based ERock (NYSE: EROC) has landed a power-generator deal with AI powerhouse Anthropic, owner of the Claude platform.

In its Q2 earnings report, ERock says it will provide equipment to Anthropic with a 470-megawatt capacity. ERock specializes in utility-grade, onsite microgrid power systems for data centers and other customers. The company previously did business as Enchanted Rock.

The Anthropic deal adds to ERock’s backlog of about $1.7 billion in orders—a figure representing a 1,000 percent year-over-year jump in backorders thanks in large part to the AI boom. ERock expects most of the backlog to convert to revenue by the end of 2027, said Ian Blakely, the company’s chief financial officer.

Bank of America analyst Ross Fowler says the Anthropic contract boosts confidence in ERock’s ability to secure other major deals, according to Traders Union. The Anthropic deal is ERock’s third major data center contract, with separate Anthropic deals for operations and maintenance services expected to follow, Fowler said.

CEO John Carrington says Anthropic’s order “reinforces the momentum” ERock is witnessing across its customer base.

“We are seeing a lot of interest in Texas. It seems to be the easiest place to get a site set up,” company President Corey Amthor said

In its Q2 earnings release—its first as a public company—ERock also reported:

  • Launching generator-assembly operations at its Hyperion equipment factory in Northwest Houston. The plant will expand ERock’s assembly capabilities to 1.2 gigawatts of capacity by the end of 2026.
  • Starting construction of a $473 million, 366-megawatt El Paso Electric natural-gas-powered plant to supply power for Meta Platforms’ $14 billion, 1,000-acre AI data center campus in El Paso. Meta is the parent company of the Facebook and Instagram social media companies.

“Meta gains access to an operational data center years earlier than may otherwise be possible, while El Paso Electric gains a flexible, low-cost, low-emissions grid asset that can support long-term system reliability,” Carrington said.

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