A report Wednesday by the Carbon Removal Alliance, a nonprofit representing the industry, outlined recommendations to improve monitoring, reporting, and verification. Photo via Getty Images

The unregulated carbon dioxide removal industry is calling on the U.S. government to implement standards and regulations to boost transparency and confidence in the sector that's been flooded with billions of dollars in federal funding and private investment.

A report Wednesday by the Carbon Removal Alliance, a nonprofit representing the industry, outlined recommendations to improve monitoring, reporting, and verification. Currently the only regulations in the U.S. are related to safety of these projects. Some of the biggest industry players, including Heirloom and Climeworks, are alliance members.

“I think it’s rare for an industry to call for regulation of itself and I think that is a signal of why this is so important,” said Giana Amador, executive director of the alliance. Amador said monitoring, reporting and verification are like “climate receipts” that confirm the amount of carbon removed as well as how long it can actually be stored underground.

Without federal regulation, she said “it really hurts competition and it forces these companies into sort of a marketing arms race instead of being able to focus their efforts on making sure that there really is a demonstrable climate impact.”

The nonprofit defines carbon removal as any solution that captures carbon dioxide from the atmosphere and stores it permanently. One of the most popular technologies is direct air capture, which filters air, extracts carbon dioxide and puts it underground.

The Inflation Reduction Act and the Bipartisan Infrastructure Law have provided around $12 billion for carbon management projects in the U.S. Some of this funding supports the development of four Regional Direct Air Capture Hubs at commercial scale that will capture at least 1 million tons of carbon dioxide annually. Two hubs are slated to be built in Texas and Louisiana.

Some climate scientists say direct air capture is too expensive, far from being scaled and can be used as an excuse by the oil and gas industry to keep polluting.

Gernot Wagner, a climate economist at Columbia Business School at Columbia University, said this is the “moral hazard” of direct air capture — removing carbon from the atmosphere could be utilized by the oil and gas industry to continue polluting.

“It does not mean that the underlying technology is not a good thing,” said Wagner. Direct air capture “decreases emissions, but in the long run also extends the life of any one particular coal plant or gas plant.”

In 2023, Occidental Petroleum Corporation purchased the direct air capture company, Carbon Engineering Ltd, for $1.1 billion. In a news release, Occidental CEO Vicki Hollub said, “Together, Occidental and Carbon Engineering can accelerate plans to globally deploy (the) technology at a climate-relevant scale and make (it) the preferred solution for businesses seeking to remove their hard-to-abate emissions.”

Jonathan Foley, executive director of Project Drawdown, doesn't consider carbon dioxide removal technologies to be a true climate solution.

“I do welcome at least some interventions from the federal government to monitor and verify and evaluate the performance of these proposed carbon removal schemes, because it’s kind of the Wild West out there,” said Foley.

“But considering it can cost ten to 100 times more to try to remove a ton of carbon rather than prevent it, how is that even remotely conscionable to spend public dollars on this kind of stuff?” he said.

Katharine Hayhoe, chief scientist of The Nature Conservancy and a distinguished professor at Texas Tech University, said standards for the direct carbon capture industry “are very badly needed” because of the level of government subsidies and private investment. She said there's no single fix for the climate crisis, and many strategies are needed.

Hayhoe said these include improving the efficiency of energy systems, transitioning to clean energy, weaning the world off fossil fuels and maintaining healthy ecosystems to trap carbon dioxide. On the other hand, she said, carbon removal technologies are “very high hanging fruit.”

"It takes a lot of money and a lot of energy to get to the top of the tree. That’s the carbon capture solution,” said Hayhoe. “Of course we need every fruit on the tree. But doesn’t it make sense to pick up the fruit on the ground, to prioritize that?”

Other climate scientists are entirely opposed to this technology.

“It should be banned,” said Mark Z. Jacobson, professor of civil and environmental engineering at Stanford University.

Carbon removal technologies indirectly increase the amount of carbon dioxide in the atmosphere, Jacobson said. The reason, he said, is that even in cases where direct air capture facilities are powered by renewable energy, the clean energy is being used for carbon removal instead of replacing a fossil fuel source.

“When you just look at the capture equipment, you get a (carbon) reduction," Jacobson said. "But when you look at the bigger system, you’re increasing.”

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Guest column: How growing energy demand will impact the Texas grid

Guest Column

Although Texas increased its power supply by 35% over the last four years, a recent report from ERCOT predicts that Texas’ energy demand will nearly double by 2030, with power supply projected to fall short of peak demand in a worst-case scenario beginning in summer 2026. There are many factors and variables that could either increase or decrease the grid’s stability.

Homebuilding in Texas

One of the most easily identifiable challenges is that the population of Texas is continuing to grow, which places greater demand on the state’s power grid. With its booming population, the state is now the second most populous in the country.

In 2024, Texas led the nation in homebuilding, issuing 15% of the country's new-home permits in 2024. Within the first two months of 2025, Houston alone saw more than 11,000 new building permits issued. The fact that Houston is the only major metro in the United States to lack zoning laws means it does not directly regulate density or separate communities by use type, which is advantageous for developers and homebuilders, who have far fewer restrictions to navigate when constructing new homes.

Large-scale computing facilities

Another main source of the growing demand for power is large-scale computing facilities such as data centers and cryptocurrency mining operations. These facilities consume large amounts of electricity to run and keep their computing equipment cool.

In 2022, in an effort to ensure grid reliability, ERCOT created a program to approve and monitor these large load (LFL) customers. The Large Flexible Load Task Force is a non-voting body that develops policy recommendations related to planning, markets, operations, and large load interconnection processes. LFL customers are those with an expected peak demand capacity of 75 megawatts or greater.

It is anticipated that electricity demand from customers identified by ERCOT as LFL will total 54 billion kilowatt-hours (kWh) in 2025, which is up almost 60% from the expected demand in 2024. If this comes to fruition, the demand from LFL customers would represent about 10% of the total forecast electricity consumption on the ERCOT grid this year. To accommodate the expected increase in power demand from large computing facilities, the state created the Texas Energy Fund, which provides grants and loans to finance the construction, maintenance, modernization, and operation of electric facilities in Texas. During this year’s 89th legislative session, lawmakers approved a major expansion of the Texas Energy Fund, allocating $5 billion more to help build new power plants and fund grid resilience projects.

Is solar power the key to stabilizing the grid?

The fastest-growing source of new electric generating capacity in the United States is solar power, and Texas stands as the second-highest producer of solar energy in the country.

On a regular day, solar power typically constitutes about 5% of the grid’s total energy output. However, during intense heat waves, when the demand for electricity spikes and solar conditions are optimal, the share of solar power can significantly increase. In such scenarios, solar energy’s contribution to the Texas grid can rise to as much as 20%, highlighting its potential to meet higher energy demands, especially during critical times of need.

While the benefits of solar power are numerous, such as reducing greenhouse gas emissions, lowering electricity bills, and promoting energy independence from the grid, it is important to acknowledge its barriers, such as:

  • Sunlight is intermittent and variable. Cloudy days, nighttime, and seasonal changes can affect energy production, requiring backup or storage solutions. Extreme weather conditions, such as hailstorms, can damage solar panels, affecting their performance and lifespan.
  • The upfront costs of purchasing and installing solar panels and associated equipment can be relatively high.
  • Large-scale solar installations may require significant land area, potentially leading to concerns about land use, habitat disruption, and conflicts with agricultural activities.
  • Integrating solar power into existing electricity grids can pose challenges due to its intermittent nature. Upgrading and modifying grids to handle distributed generation can be costly.

Although Texas has made progress in expanding its power supply, the rapid pace of population growth, homebuilding, and large-scale computing facilities presents challenges for grid stability. The gap between energy supply and demand needs to continue to be addressed with proactive planning. While solar power is a promising solution, there are realistic limitations to consider. A diversified approach that includes both renewable and traditional energy sources, along with ongoing legislative movement, is critical to ensuring a resilient energy future for Texas.

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Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

Enbridge activates first solar power project in Texas

power on

Canadian energy company Enbridge Inc., whose gas transmission and midstream operations are based in Houston, has flipped the switch on its first solar power project in Texas.

The Orange Grove project, about 45 miles west of Corpus Christi, is now generating 130 megawatts of energy that feeds into the grid operated by the Electric Reliability Council of Texas (ERCOT). ERCOT supplies electricity to 90 percent of the state.

Orange Grove features 300,000 solar panels installed on more than 920 acres in Jim Wells County. Construction began in 2024.

Telecom giant AT&T has signed a long-term power purchase agreement with Enbridge to buy energy from Orange Grove at a fixed price. Rather than physically acquiring this power, though, AT&T will receive renewable energy certificates. One renewable energy certificate represents the consumption of one megawatt of grid power from renewable energy sources such as solar and wind.

“Orange Grove is a key part of our commitment to develop, construct, and operate onshore renewable projects across North America,” Matthew Akman, executive vice president of corporate strategy and president of renewable power at Enbridge, said in 2024.

Orange Grove isn’t Enbridge’s only Texas project. Enbridge owns the 110-megawatt Keechi wind farm in Jacksboro, about 60 miles northwest of Fort Worth, and the 249.1-megawatt Chapman Ranch wind farm near Corpus Christi, along with a majority stake in the 203.3-megatt Magic Valley I wind farm near Harlingen. The company’s 815-megawatt Sequoia solar project, east of Abilene, is scheduled to go online in early 2026. Enbridge has signed long-term power purchase agreements with AT&T and Toyota North America for energy produced by Sequoia.

During a recent earnings call, Enbridge President and CEO Greg Ebel said that given the “unprecedented demand for power generation across North America,” driven largely by explosive growth in the data center sector, the company expects to unveil more renewable energy projects.

“The policy landscape for renewables is dynamic,” Ebel said, “but we think we are well-positioned with our portfolio of late-stage (projects).”