US carbon removal hub funding may face Energy Department cuts, sources say

29/3/2025 6:34

The U.S. Department of Energy is weighing cuts of hundreds of millions of dollars in grants to two projects in Texas and Louisiana aimed at demonstrating technology to capture carbon from the atmosphere at commercial scale, three sources familiar with the matter said.



The Direct Air Capture hubs, part of former President Joe Biden's effort to slash U.S. greenhouse gas emissions, were launched by the DOE's Office of Clean Energy Demonstrations to help commercialize the expensive and nascent carbon removal technology. At full operation, the two hubs could remove more than 2 million metric tons of carbon emissions per year, far more than the world's biggest operating DAC plant in Iceland.