New Analysis Shows State By State Direct Air Capture Deployment In The US

New Analysis Shows State By State Direct Air Capture Deployment In The US - Carbon Herald
Source: Rhodium Group – Direct Air Capture Deployment and Economic Opportunity: State-by-State. https://rhg.com/research/direct-air-capture-deployment-and-economic-opportunity-state-by-state/

Independent research provider Rhodium Group released a new analysis showing the potential of the direct air capture opportunity in the US. The report named Direct Air Capture Deployment and Economic Opportunity: State-by-State follows the potential for DAC development in each state by 2035 and 2050. Apart from the capture capacity potential, it also looks into the jobs opportunities to be created in the space. 

According to Rhodium Group’s 2023 projection on US emissions from another research published last year, the current policy support in the US could result in the deployment of up to 84 MMT/yr of direct air capture capacity by 2035. The country’s economic climate for DAC development has been characterized as positive for the nascent sector. The US government has enacted a tax credit of up to $180 per ton of carbon dioxide removed and stored under section 45Q of the tax code and $3.5 billion in funding for regional direct air capture hubs.

Relevant: Direct Air Capture Plants Expected To Generate An Average Of Over 1,500 Jobs

Due to this substantial opportunity in the sector, the analysis says that in the near-term or by 2035, nearly all states have potential to deploy at least one direct air capture facility, with the top 5 states with near-term deployment and job development opportunities being Texas (0.9 – 13.9 MMT/CO2 per year), Iowa (0.4 – 6.1 MMT/CO2 per year), Louisiana (0.4 – 6 MMT/CO2 per year), Nebraska (0.2 – 3.7 MMT/CO2 per year), and Oklahoma (0.2 – 3.4 MMT/CO2 per year).

Texas stands out as having a high economic opportunity compared to other states due to its large land area and substantial low-carbon energy and storage resource potential. The data for the carbon capture potential for the top 5 states by 2050 is as follows: Texas (107.4 – 351.9 MMT/CO2 per year), New Mexico (37.2 – 105.7 MMT/CO2 per year), Alaska (30.2 – 99.1 MMT/CO2 per year), Kansas (28.6 – 93.9 MMT/CO2 per year), and Oklahoma (28.5 – 93.3 MMT/CO2 per year). 

Relevant: New Oxford Institute Study Examines What Is Needed To Scale Direct Air Capture

Texas also offers the largest jobs opportunities with 970 – 19,370 number of potential jobs by 2035 and 98,520 – 423,430 jobs by 2050. 

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