Energy major Chevron has confirmed its exit from a federal partnership aimed at developing a Direct Air Capture (DAC) hub in Kern County, California, marking a notable setback for regional carbon removal ambitions.
Known as the Western Regional Direct Air Capture Hub, the project was originally selected for federal funding under the US Department of Energy (DOE) to design infrastructure capable of pulling CO2 directly from the atmosphere for permanent geological storage.
Chevron spokeswoman Chanel Jolly confirmed the company agreed to a “consensus termination” of the award with the DOE in July 2025.
The project had received an initial $3 million DOE allocation for design work, with recent reports indicating Chevron drew down roughly $1 million prior to its departure.
Jolly stated that the decision should not be viewed as a reflection of the technology’s viability or the feasibility of direct air capture initiatives broadly.
Regulatory Uncertainty Challenges US Direct Air Capture Rollout
The Kern County project was the only one of five proposed local DAC initiatives to advance through federal negotiations under the Biden administration’s $3.5 billion regional hub framework.
Kern County has long been targeted as an ideal carbon management hub due to its skilled oil and gas workforce, established capital base, and favorable geological storage formations.
Relevant: Chevron’s Gorgon CCS Project Posts Lowest Carbon Storage Levels On Record
Despite Chevron’s exit, local carbon management efforts continue forward, with California Resources Corp. advancing point-source carbon capture at its nearby Elk Hills operations.
Additionally, local developers are pursuing alternative funding options, including an $11 million demonstration program offered by the California Energy Commission.
The withdrawal highlights broader instability across the US DAC ecosystem, where shifting political priorities and regulatory uncertainty continue to challenge the commercial rollout of large-scale atmospheric carbon removal projects.
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