US Invests $890 Million for Carbon Capture at Coal and Gas Power Stations

The US Department of Energy's (DOE) Office of Clean Energy Demonstrations (OCED) has unveiled plans to allocate a substantial sum of up to $890 million to projects operating in three natural gas and coal-fired power plants. The primary objective of these projects is to demonstrate innovative carbon capture, transport, and storage technologies, ultimately contributing to the reduction of emissions originating from these plants.

As per the DOE's announcement, the three selected projects are strategically located in California, North Dakota, and Texas. Collectively, these initiatives hold the potential to curtail an impressive 7.75 million metric tons of emissions annually from the power plants. The financial support for these projects is part of the OCED's Carbon Capture Demonstration Projects Program, which was launched in 2022 with a substantial budget of $2.5 billion. The overarching goal of this program is to expedite the demonstration and implementation of carbon management technologies. Emphasizing integrated carbon capture, transport, and storage technologies and infrastructure, the program targets their replicability and applicability at fossil energy power plants. This includes major industrial sources of CO2, such as cement pulp and paper, iron and steel, and chemical production facilities.

The program itself draws its funding from the Bipartisan Infrastructure Law, which has earmarked approximately $6.5 billion over a five-year span for carbon management projects and initiatives.

Among the projects selected for funding is the Baytown Carbon Capture and Storage (CCS) Project situated in Texas. This initiative aims to capture carbon emanating from a natural gas combined-cycle power plant and subsequently store it in Gulf Coast sites. Notably, the project is exploring the use of re-used greywater, an eco-friendly alternative to freshwater, for cooling purposes. Another selected project is Project Tundra in North Dakota, strategically targeting the Milton R. Young Station coal-fired power plant. The objective here is to capture carbon from this plant and store it permanently in saline geologic formations surrounding the facility. The third project, the Sutter Decarbonization Project located in Yuba City, California, intends to employ an innovative air-cooling system to eliminate the need for cooling water. This system is set to significantly reduce freshwater usage at the Sutter Energy Center, a natural gas combined-cycle power plant with plans for a commercial-scale carbon capture system.

These project awards align with the broader national agenda to advance carbon capture technologies, mitigate greenhouse gas emissions, and foster innovation in the energy sector. The strategic allocation of funds underscores the government's commitment to catalyzing impactful projects that contribute to the nation's carbon reduction goals and set a precedent for sustainable practices in the broader energy landscape.