Project Cypress Receives $50M From DOE In First Tranche For The DAC Hub Development

Project Cypress Receives $50M From DOE In First Tranche For The DAC Hub Development - Carbon Herald

Project Cypress, one of the largest DAC initiatives in development, part of the Regional Direct Air Capture (DAC) Hubs program is announced from The U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) as a winner of a $50 million award. 

The major investment represents the first tranche of funding for activities in the program part of the initial project phase, which include planning, design, community and labor engagement. The phase is expected to take 2-3 years to be completed. 

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The award of $50 million from OCED will also mobilize $51 million in private investment for this initial phase. When fully operational, the hub should remove 1 million tons of CO2 from the air annually by 2030. 

Source: Office of Clean Energy Demonstrations

The project is located in Louisiana with the final siting and storage options still left to be determined by the project developers. The selected sites include privately owned land in Calcasieu Parish. The project is also negotiating commercial arrangements with service providers, including with Gulf Coast Sequestration, and will use viable geology that has been studied extensively for safe, permanent carbon storage.

Relevant: The U.S. Announces $6B Investment For 33 Projects For Decarbonization

The project is led by Battelle with technology providers Climeworks and Heirloom Carbon Technologies. Climeworks deploys a solid sorbent capture and thermal regeneration technology, and Heirloom utilizes limestone to absorb CO2 when exposed to air. Project Cypress will likely transport the captured CO2 to a sequestration partner who has already obtained a permit for permanent geological storage.

The project is also aligned with the Community Benefit Plan, part of President Biden’s requirement for the DAC Hubs to build workforce development and community and labor engagement strategies. The project is expected to  make robust investments in the local community and region, create new high-quality jobs, including works with local workforce development groups to identify programs to assist in job training for the project.

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