Released November 09, 2023 | NEW DELHI
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Amid the rising urgency to address climate change, direct air capture (DAC) technology has emerged as a promising solution in the battle against rising atmospheric carbon levels. In 2022, energy-related carbon emissions reached more than 36.8 billion metric tons, growing by 0.9%, or 321 million metric tons, from 2021.
DAC pulls carbon dioxide (CO2) directly from the atmosphere for storage or utilization, as opposed to carbon capture plants attached to industrial facilities. According to the latest report by the International Energy Agency (IEA), DAC technology currently captures about 0.01 million metric tons of CO2 from the atmosphere annually.
The global concern to achieve the net zero carbon goal by 2050 is the major factor fueling the growth of DAC technology. Additionally, the increased focus on corporate sustainability responsibility is further driving the adoption of DAC, particularly among companies with higher carbon footprints.
Currently, Industrial Info is tracking 25 active DAC projects worth US$25.6 billion globally. North America leads the way with investments worth US$24.82 billion. The next top spenders are Europe and South America, with investments of US$417 million and US$20 million, respectively. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a list of detailed project reports.
Rusheen Capital Management LLC (Santa Monica, California), Occidental Petroleum Corporation (NYSE:OXY) (Houston, Texas) and CarbonCapture Incorporated (Los Angeles, California) are the top players in the DAC market, contributing around more than 95% of the total spending.
As per Industrial Info's database, the investments toward direct air capture projects have substantially increased in the past year, rising from US$3.46 million to US$25.26 billion.
Occidental Petroleum is investing US$10 billion to set up DAC units in seven grassroot direct air capture & carbon sequestration complexes. Each unit will capture up to 1 million tons per annum of carbon dioxide.
CarbonCapture is investing about US$3 billion to capture 12,000 tons of CO2 from the air, with the goal of capturing 5 megatons in phases by 2030.
While significant investments are flowing into the DAC market, deploying the technology comes with its own challenges, such as high operational costs and scaling concerns.
Currently, it can cost anywhere from US$600 to US$1,000 to remove a metric ton of carbon dioxide from the air using DAC. To deploy DAC technology on a larger scale, the cost must be reduced by at least 75%.
Strong support from various governmental policies for further innovation can significantly help ramp up the expansion of DAC. A US$115 million DAC prize program in the U.S. and significant funding for new research and development is underway in various countries such as Australia, Canada, Japan and the U.K.
Technological innovations, coupled with diverse governmental initiatives, can possibly drive down the high costs and lead to accelerated commercialization. As estimated by the IEA, DAC technologies are projected to capture more than 85 million metric tons of CO2 by 2030 and 980 million metric tons by 2050.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
DAC pulls carbon dioxide (CO2) directly from the atmosphere for storage or utilization, as opposed to carbon capture plants attached to industrial facilities. According to the latest report by the International Energy Agency (IEA), DAC technology currently captures about 0.01 million metric tons of CO2 from the atmosphere annually.
The global concern to achieve the net zero carbon goal by 2050 is the major factor fueling the growth of DAC technology. Additionally, the increased focus on corporate sustainability responsibility is further driving the adoption of DAC, particularly among companies with higher carbon footprints.
Currently, Industrial Info is tracking 25 active DAC projects worth US$25.6 billion globally. North America leads the way with investments worth US$24.82 billion. The next top spenders are Europe and South America, with investments of US$417 million and US$20 million, respectively. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a list of detailed project reports.
Rusheen Capital Management LLC (Santa Monica, California), Occidental Petroleum Corporation (NYSE:OXY) (Houston, Texas) and CarbonCapture Incorporated (Los Angeles, California) are the top players in the DAC market, contributing around more than 95% of the total spending.
As per Industrial Info's database, the investments toward direct air capture projects have substantially increased in the past year, rising from US$3.46 million to US$25.26 billion.
Occidental Petroleum is investing US$10 billion to set up DAC units in seven grassroot direct air capture & carbon sequestration complexes. Each unit will capture up to 1 million tons per annum of carbon dioxide.
CarbonCapture is investing about US$3 billion to capture 12,000 tons of CO2 from the air, with the goal of capturing 5 megatons in phases by 2030.
While significant investments are flowing into the DAC market, deploying the technology comes with its own challenges, such as high operational costs and scaling concerns.
Currently, it can cost anywhere from US$600 to US$1,000 to remove a metric ton of carbon dioxide from the air using DAC. To deploy DAC technology on a larger scale, the cost must be reduced by at least 75%.
Strong support from various governmental policies for further innovation can significantly help ramp up the expansion of DAC. A US$115 million DAC prize program in the U.S. and significant funding for new research and development is underway in various countries such as Australia, Canada, Japan and the U.K.
Technological innovations, coupled with diverse governmental initiatives, can possibly drive down the high costs and lead to accelerated commercialization. As estimated by the IEA, DAC technologies are projected to capture more than 85 million metric tons of CO2 by 2030 and 980 million metric tons by 2050.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
