Direct Air Capture Coalition reposted this
It was great to represent Mead & Hunt at the Direct Air Capture Coalition Global Direct Air Capture Conference last week. Significant progress has been made but there are also important gaps to be bridged for the industry to move from first of its kind pilot projects to full scale commercialization. Below are my key takeaways: 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠: Investors in Direct Air Capture (DAC) projects face a complex risk profile due to the emerging nature of the technology and market. Creative and innovative financing models are essential for de-risking DAC projects and encouraging investment. 𝐃𝐞𝐦𝐚𝐧𝐝: DAC companies currently depend heavily on voluntary commitments for Carbon Dioxide Removal (CDR) Credits. Instituting regulatory frameworks and compliance markets would increase the demand for CDR credits helping DAC to scale. 𝐄𝐧𝐞𝐫𝐠𝐲: DAC facilities are energy intensive and in competition with AI Data centers for clean energy sources. However, the operational and resiliency requirements of DAC facilities are more flexible than that Data centers. While DAC facilities need energy reliability, they can be designed to operate flexibly based on energy availability, especially when collocated with renewable sources. Data centers require multiple layers of redundant systems to ensure uninterrupted service. 𝐏𝐞𝐫𝐦𝐢𝐭𝐭𝐢𝐧𝐠: Permitting of Class VI wells needs to be streamlined as it is currently a critical bottleneck in scaling DAC. The complexity and length of this process can significantly delay project timelines. Several states have applied for and been granted "primacy" to manage Class VI permitting locally, which can expedite approvals. 𝐌𝐞𝐬𝐬𝐚𝐠𝐢𝐧𝐠: DAC companies must start sending the message that they are not only a climate technology but can be an economically viable solution to gain widespread adoption. Much work has been done, but there is still much work to do! #CarbonRemoval #DirectAirCapture #DAC #CarbonCapture #EPC #Engineering #Construction #AEC #Decarbonization #Energy