Carbon capture technology has long been hailed as one of the best tools we have for combatting climate change, but without a tangible product to sell, the economics of carbon-removing projects has been fuzzy and unappealing for investors.
These days, however, the economic and political pieces required for this technology to take off are beginning to fall into place. Carbon Engineering, a leading company in direct air capture technology (DAC), which uses low-carbon energy to remove carbon dioxide, published a report a little less than a year ago suggesting they could remove and store CO2 for under $100 per ton. Thanks to some recent U.S. policy developments, companies like theirs can now receive a $35-50 tax credit for each ton of the CO2 they remove. At the same time, private investments in the technology are nearing $200 million.
All of this, combined with a recent report that specifies a definite need for the use of carbon capture technology should the US want to meet the targets outlined by the Paris Agreement, makes the case for investing in direct air capture technology more compelling than ever.
