Updated on November 5, 2024. A previous version of this article incorrectly stated that Climeworks has plans for an additional facility and has received more funding.
Leading direct air capture (DAC) developer Climeworks has attracted more local support for the Regional DAC hub in Southwest Louisiana.
The carbon removal company has been offered an incentive package from Louisiana Economic Development (LED), an organization focused on developing a strategic plan for the state and advising on policies, programs and initiatives that promote its economic growth.
The company is expected to take part in Louisiana’s Industrial Tax Exemption program which offers an 80% property tax abatement for up to 10 years on a manufacturer’s new investment.
LED will support the project with access to its Quality Jobs program, which provides payroll benefits as an inducement for businesses to locate or expand operations in the state.
The package also includes workforce development solutions through the LED FastStart program, which provides customized employee recruitment, screening, training development and delivery for companies.
“Climeworks is wielding a new solution to the ongoing issue of carbon dioxide and its effect,” Southwest Louisiana Economic Development Alliance President and CEO George Swift said. “Their direct air capture facility will not only mean 140 direct jobs but also hundreds of ancillary jobs and widespread economic ripples in the Vinton community. They are investing in Vinton today and their work also invests in the future of our region.”
The Regional DAC Hub in Louisiana
Project Cypress, a collaboration that combines the technology and services of Climeworks, Battelle, and Heirloom, aims to extract carbon dioxide from the atmosphere and improve the livelihoods of local communities through various job opportunities and economic development in the region.
Climeworks is projected to make a final investment decision and start construction activities in Q3 of 2026, while operations at the new DAC facility are expected to begin by the end of 2027.
According to current evaluations, through this initiative, Climeworks will be able to create 140 direct jobs with an additional 800 construction work opportunities.
Read more: CapturePoint Selected To Transport And Store Project Cypress CO2 For Climeworks
