Direct Air Capture: Overcoming the Key Economic Challenges for Rapid Deployment

Finding low-cost and low-risk sequestration or utilization pathways is crucial for DAC deployment

CO2 capture by direct air capture, planned projects and in the Net Zero Scenario, 2020-2030, (source)

Direct air capture (DAC) is a promising technology for reducing atmospheric carbon dioxide (CO2) levels, but its high capital and operational costs pose significant economic challenges. However, there are potential solutions that can make DAC more affordable and economically competitive with other carbon capture technologies. One solution is to locate DAC facilities close to sequestration or use sites to reduce transportation costs. Another solution is to integrate DAC with low-cost renewable energy sources to reduce electricity costs. Additionally, integrating DAC with enhanced oil recovery (EOR) operations can provide a low-cost and sustainable sequestration pathway for captured CO2, increasing the profitability of both DAC and EOR operations. Finally, the 45Q tax credits provide a financial incentive for CO2 sequestration, further enhancing the profitability of DAC facilities. In this publication, we will explore these low-risk and low-cost sequestration or utilization pathways for captured CO2 which is crucial to make DAC economically viable.