To the naked eye, direct air capture machines look like shipping containers stacked on top of each other, dominating open stretches of land. They are designed to eliminate carbon: either by sucking it out of the air and storing it deep underground, or by turning it into something solid, removing it from the atmosphere permanently.
The technology has caught the attention of the Biden administration, Tesla and SpaceX CEO Elon Musk, and companies like Alphabet and Meta. Proponents say carbon capture technology is a creative and essential way to rapidly slow global warming and reach net zero emissions by 2050. Critics say it is more important to focus on reducing greenhouse gases by changing behavior in society.
Still, the spending bill offers companies a tax credit of $180 per ton of carbon they capture, up from $50 per ton — a boon for industry. To be eligible, projects would have to remove at least 1,000 tonnes of carbon, down from the more restrictive 100,000 tonnes.
Adrian Corless, CEO of Pasadena, Calif.-based Carbon Capture, said these changes will help his business expand. Currently, he said, it costs his company roughly $400 to $500 per ton of carbon captured to operate.
Having a larger tax credit makes his business more attractive to investors and less dependent on philanthropic dollars, he said. Dropping the project size limit to qualify allows his company to partner with states, corporations and other entities on smaller projects across the country.
“This allows us to enter the market and start business in 2023,” he said. “And that allows us to scale our volumes quickly.”
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