Sucking carbon from the air reaps $3.5B

Presented by Chevron: Your guide to the political forces shaping the energy transformation

Dec 14, 2022 View in browser   By Arianna Skibell Presented by Chevron The world's first commercial direct air capture plant from Climeworks. | Julia Dunlop/Climeworks Fusion energy isn't the only climate moonshot getting attention this week. The Energy Department also announced a $3.5 billion initiative to suck carbon out of the atmosphere. The program will fund four regional hubs that would remove more heat-trapping pollution from the sky than all of the world's existing direct air capture facilities combined, write POLITICO's E&E News reporters Corbin Hiar and Carlos Anchondo. The record infusion of cash is igniting a high-stakes race to shape the future of direct air capture technology and supercharge the nascent industry. But some proponents are frustrated with a recent change to the program that would allow future hubs to use the carbon dioxide they trap for enhanced oil production. "To allow the oil companies to participate in this government-supported enterprise is stunning and disorienting when we're listening to [President Joe] Biden and DOE officials talk about their climate goals," John Noël, a senior climate campaigner with Greenpeace USA, told Corbin and Carlos. Still, the announcement made clear that hub projects that include oil may have a difficult time obtaining funding. Preference will be given to applications with the greatest net climate benefit, DOE said. The prize money, which comes from the bipartisan infrastructure law of 2021, will be distributed over the next five years in two competitions. It's likely to bolster growing interest among corporations and startups who see the business potential of sucking greenhouse gas emissions from the atmosphere. Already this year, companies have announced new projects in Texas and Wyoming. While many climate hawks once considered direct air capture a distraction from mitigating future emissions, scientists now largely agree it will be necessary to limit global warming to 1.5 degrees Celsius — the international target established by the 2015 Paris Agreement. The technology is considered particularly critical for a future where all industries have weaned themselves off fossil fuels as much as possible, but the world still needs to offset some CO2 pollution from industries that struggle to fully decarbonize, such as agriculture.   It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. Listen to today's POLITICO Energy podcast Today in POLITICO Energy's podcast: Ben Lefebvre and Josh Siegel break down what to know about the Energy Department's nuclear fusion experiment and how lawmakers are reacting.   A message from Chevron: At Chevron, we're working to help progress the energy sector forward. Subscribe to The Human Energy Newsletter to receive our recently published methane report, energy news, powerful insights, and the latest on our efforts to bring affordable, reliable, ever-cleaner energy to the world.   Power Centers Energy Secretary Jennifer Granholm discusses fusion research. | J. Scott Applewhite/AP Photo Fusion power plant The Energy Department is looking to fund research into developing a utility-scale power plant capable of delivering at least 50 megawatts of fusion energy to the grid, writes Peter Behr. Applications for the $50 million research grant end Thursday, following this week's news that scientists for the first time produced a fusion reaction that generated more energy than it consumed. Carbon border tax The European Union's climate import tax could galvanize a congressional conversation about enacting a similar policy in the United States, writes Nick Sobczyk. Republicans have grown increasingly interested in the policy as a way to promote U.S. industry and fight Chinese imports, and climate advocates across the political spectrum are hoping the European Union's move will accelerate that support. Keep gas out of it German Economy Minister Robert Habeck wants to maintain gas supplies from Qatar, despite the corruption scandal unfolding in Brussels, writes Gabriel Rinaldi. While in Brussels for an energy ministers' meeting, Habeck said that the alleged corruption of EU politicians by Qatar should not be mixed up with the issue of gas purchases.   A message from Chevron:   in other news Arctic sea ice meets land along the upper Baffin Bay coast near Greenland. | Mario Tama/Getty Images The great melt: Warmer and stormier conditions are destabilizing the Arctic, a report says. Heat: A new study links heart disease deaths to extreme temperatures.   A NEW POLITICO PODCAST: POLITICO Tech is an authoritative insider briefing on the politics and policy of technology. From crypto and the metaverse to cybersecurity and AI, we explore the who, what and how of policy shaping future industries. We're kicking off with a series exploring darknet marketplaces, the virtual platforms that enable actors from all corners of the online world to traffic illicit goods. As malware and cybercrime attacks become increasingly frequent, regulators and law enforcement agencies work different angles to shut these platforms down, but new, often more unassailable marketplaces pop up. SUBSCRIBE AND START LISTENING TODAY.     Subscriber Zone A showcase of some of our best subscriber content. A spinning turbine from Dominion Energy Inc.'s pilot offshore wind project. | Francis Chung/POLITICO Nine states along the Eastern Seaboard are working on a regional fund to pay fishermen for lost catches as developers build offshore wind farms near the Atlantic coast. The new U.S. climate law will trigger a major expansion of critical minerals and other imports, despite concerns that many trading partners are raising about its provisions. Texas launched its own green bank to help families and small businesses drive down their carbon emissions and utility bills, despite conservative opposition. That's it for today, folks! Thanks for reading.   A message from Chevron: From news and updates on Chevron's renewable fuel projects to the latest energy reports, The Human Energy Newsletter will keep you better informed on the entire energy sector. Subscribe to the newsletter and be the first to receive news and updates directly to your inbox. Subscribe now.     POLITICO AT CES 2023 : We are bringing a special edition of our Digital Future Daily newsletter to Las Vegas to cover CES 2023. The newsletter will take you inside the largest and most influential technology event on the planet, featuring every major and emerging industry in the technology ecosystem gathered in one place. The newsletter runs from Jan. 5-7 and will focus on the public policy related aspects of the event. Sign up today to receive exclusive coverage of CES 2023.       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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