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Google has taken a bold step with Holocene in the fight against climate change. (Photo: iStcok)
American tech giant Google has announced a partnership with carbon capture startup Holocene, signing a contract worth up to $10 million. Starting in 2030, Google plans to purchase carbon credits at a very low price of $100 per ton. This bold and unprecedented collaboration has attracted significant attention due to the high costs associated with direct air capture of carbon dioxide.
Google to help Holocene lower development costs
Experts generally agree that for direct air capture (DAC) technology to be widely implemented, costs need to drop to $100 per ton. This so-called 'holy grail' price threshold is challenging to achieve in the short term. Even Climeworks, a Swiss startup operating the world’s largest DAC facility in Iceland, aims to reduce costs by 50% by 2030, but the cost per ton will still need to be between $400 and $600.
According to official statements, Holocene employs innovative technology using amino acids and other organic compounds to continuously capture carbon dioxide from the air. This CO2 is then concentrated and heated at low temperatures to create a pure CO2 stream suitable for transport and storage. Compared to other energy-intensive methods, Holocene’s approach is more cost-effective and scalable, although the technology is still in the early development stages.
Google not only sees potential in Holocene's innovative technology for significant cost reductions over time but is also providing partial upfront payments to accelerate development and reduce initial costs. The project qualifies for tax incentives under the U.S. Inflation Reduction Act (IRA), which also helps alleviate Holocene's cost pressures.
Challenges in carbon capture remain
Holocene, founded in 2022, has received recognition from Bill Gates' Breakthrough Energy, the U.S. Department of Energy, and Frontier. Funding from contracts, grants, and awards totals approximately $8 million. Holocene’s current pilot project can capture 10 tons of CO2 per year, and a demonstration plant scheduled for 2026 is expected to scale this up to several thousand tons annually.
The challenges of DAC extend beyond just costs. According to the media platform focused on carbon credits, Carbon Credits, the rising demand for clean energy driven by data centers means DAC must compete for low-carbon energy resources. For instance, the CarbonCapture's Project Bison was recently forced to abandon its facility plans in Wyoming due to this competition.
Furthermore, current carbon capture technology can only remove 2,000 tons of CO2 per year, falling far short of the expert-set goal of removing billions of tons annually. The demand for carbon removal services also remains uncertain.
Source: Google, Axios, Carbon Credits, Holocene
