Google and Holocene ink historic Carbon Removal Deal
In a landmark agreement, Google partners with Holocene to procure 100,000 tons of Carbon Removal credits at a record low price, marking a significant advancement in the fight against climate change.
Knoxville, TN and Mountain View, CA – October 2023: In a significant move towards achieving net-zero emissions, tech giant Google has entered into a landmark agreement with Direct Air Capture (DAC) technology company Holocene to procure 100,000 tons of carbon removal credits. The deal, announced today, signifies a record low price for DAC-based removal at $100 per ton.
DAC technology plays a crucial role in carbon capture, extracting CO2 directly from the atmosphere. The International Energy Agency (IEA) identifies it as an essential component in transitioning to a net-zero energy system. CO2 captured through DAC can be utilised as a raw material or permanently sequestered when combined with storage solutions. The Intergovernmental Panel on Climate Change (IPCC) has highlighted that limiting global warming to 1.5°C requires scaling carbon dioxide removal methods to billions of tons annually, with DAC expected to contribute significantly.
Holocene, founded in 2022 and based in Knoxville, Tennessee, offers a scalable DAC solution utilising amino acids and other organic compounds to extract CO2 from the atmosphere. The captured CO2 is concentrated and subjected to low temperatures to generate a pure CO2 stream, which is then transported for permanent underground storage.
Randy Spock, Carbon Credits and Removals Lead at Google, expressed the company's commitment to environmental sustainability in a statement:
“We’re committed to doing our part to decarbonise the global economy and reach our goal of net-zero emissions across our operations. Carbon removal technologies are key to that goal. Partnering with Holocene to reach this milestone price will be a meaningful step toward advancing the viability of DAC as a tool to fight climate change.”
Google credits multiple factors for achieving the record-low price of this agreement. These include Holocene's innovative approach combining both liquid and solid-based systems, which are expected to significantly reduce costs over time. Additionally, Google's upfront financial support and commitment to accept credits from Holocene’s forthcoming lower-cost facilities, slated for delivery in the early 2030s, played a crucial role. Holocene’s projects also qualify for the U.S. government’s 45Q tax credit, which provides a benefit of $180 per ton of carbon removed, further enhancing the financial viability of the project.
“Our partnership with Holocene aims to address one of the key barriers facing DAC technologies: the hefty price tag. While Holocene’s technology is still in the early stages of development, it has the potential to bring down costs significantly over time,” added Spock.
This agreement follows Google’s March commitment to contract for at least $35 million in carbon removal credits over the following 12 months. This initiative forms part of a larger effort by the U.S. Department of Energy (DOE) to scale the carbon removal sector through funding and technological innovations.
As the world grapples with mitigating climate change, such partnerships between technology giants and innovative carbon removal startups signify a crucial step towards achieving sustainable environmental goals and potentially revolutionising the carbon capture industry.