Google Strikes Landmark Deal with Carbon Removal Start-Up

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Google's new partnership with Holocene gives the tech giant access to the cheapest carbon removal service ever seen
Google has partnered with Holocene to advance direct air capture technology, aiming to slash costs and scale up carbon dioxide removal technologies

Google has announced a pioneering agreement with direct air capture (DAC) provider Holocene. At just US$100 per ton of carbon dioxide removed, the deal between the two companies is the lowest price on record for DAC.

In sustainability circles, this deal is already being discussed as potentially pivotal in reducing the cost of DAC technology hereafter.

Experts widely agree that to halt global warming, billions of tons of CO2 must be removed from the atmosphere annually by 2050. DAC, which extracts CO2 directly from the air for permanent storage or reuse, is no silver bullet, but it is increasingly being spoken of as a crucial weapon in the fight for decarbonisation.

A visual representation of the amount of concentrated carbon dioxide polluting Earth’s atmosphere each day, with New York for scale | Credit: Carbon Visuals

However, the technology has faced substantial hurdles in achieving commercial viability. Current DAC plants struggle to deliver more than 2,000 tons of carbon removal credits per year, with prices hovering in the hundreds of dollars per ton of CO2 removed. 

These high costs and low efficiencies have deterred widespread investment from companies and governments alike.

Google's partnership with Holocene, however, is aiming to tackle this affordability problem head on.

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Why is Holocene’s carbon capture so cheap?

The deal's unprecedentedly low cost is down to a number of things. In a promotional video explaining the new partnership, Google itself describes the investment in Holocene as “an early bet”. 

Google sees potential in the start-up’s idiosyncratic approach to carbon capture. Total success is by no means guaranteed, but there is a hope that Holocene’s technology will be scalable like no carbon capture system that has come before.

Google has committed to providing upfront financial support for Holocene’s endeavours, while agreeing to accept credits from its lower-cost facilities, scheduled for delivery in the early 2030s.

Another helpful factor is the US government's 45Q tax credit. This provides suppliers with an additional US$180 per ton of carbon removed. This policy incentive, coupled with Google's commitment, creates a more attractive investment proposition for DAC technologies.

Google is leveraging the US government’s tax credit system to invest in sustainable technology

What makes Holocene different?

Holocene's technology stands out for its use of amino acids and organic compounds to capture CO2 from ambient air continuously. The captured CO2 is then concentrated and heated at low temperatures, producing a pure CO2 stream ready for transport and permanent storage. 

This approach addresses the high energy and capital costs typically associated with DAC, as it can utilise low-temperature heat from carbon-free or waste heat sources and employs widely available industrial equipment.

Under the terms of the agreement, Holocene will capture and store 100,000 tons of CO2 by the early 2030s—equivalent to removing emissions from approximately 20,000 petrol-powered vehicles driven for a year. While this volume significantly surpasses current DAC solutions, it remains a fraction of the carbon removal needed on a global scale.

Holocene’s first target is to remove 100,000 tons of CO2 from the atmosphere, equivalent to a year’s worth of emissions from 20,000 cars | Credit: Xeno_Sapien

Nevertheless, industry experts believe this deal could be a real stepping stone. Achieving cheap DAC, even at a small scale, could bolster market confidence in the technology's potential, paving the way for the success of future developments.

The future of carbon capture

By demonstrating a path to dramatically lower costs, this agreement may encourage other tech giants and investors to follow suit.

While carbon capture solutions like DAC are important, they cannot reduce harmful emissions at source. With that said, they could form an important part of a patchwork solution aimed at mitigating climate change.

Google emphasises that this deal is just one part of a broader strategy: "Beyond this deal, we'll continue to support catalytic technologies across many carbon removal pathways that will help us — and the world — reach net zero emissions.”

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