The U.S. Department of Energy on Tuesday agreed to commit $3.7 billion to finance projects to remove planet-warming carbon from the atmosphere and meet the nation's goal of net-zero greenhouse gas emissions by 2050.
Tuesday's announcement formalizes a previously announced plan to finance four direct air capture hubs to draw carbon dioxide from the air and store it underground.
The Department of Energy estimates that initiatives taken through the Inflation Reduction Act and Bipartisan Infrastructure Law will by 2030 push economy-wide greenhouse gas emissions 40% below 2005 levels. Dozens of U.S. carbon capture projects have been proposed to take advantage of Federal 45Q tax credits provided by the IRA. Direct air-capture projects receive a per-tonne credit of $180 versus $50 previously.
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