While some climate change is normal, human actions have dramatically accelerated it. And this has led to increased severe weather events, rising sea levels, and global warming. With the Paris Agreement in place and many countries onboard with reducing their emissions, we have a clear pathway to slowing and even reversing climate change. Unfortunately, the world is still off-track for meeting the goals of the Paris Agreement, so we all need to do more.
To try to help get the U.S. on track and potentially spur the same action worldwide, the government has announced major funding to kick-start growth in the U.S. carbon removal industry. This technology remains relatively new and still needs more research to meet the levels needed to make a significant impact, but the hope is these funds will help get that in motion.
Learn all the details about the billions of dollars the U.S. government is injecting into the carbon-removal industry and how it can help the environment below.
How Much Did the U.S. Government Commit to Funding Carbon Removal?
The U.S. Department of Energy (DOE) recently announced it would commit $3.7 billion to finance projects to remove carbon dioxide (CO2) from the atmosphere. This is in an attempt to kickstart our commitment to emit net-zero greenhouse gas emissions (GHG emissions) by 2050 and slow climate change through the commercialization of carbon sequestration and storage.
In a second round of funding the DOE announced another $2.52 billion for two carbon capture initiatives. Of these funds, $820 million will go to 10 projects targeting the de-risking of carbon-capture technology. This will help organizations test new technology in the power and industrial sectors.
The remaining $1.7 billion will support six carbon-capture demonstration projects showing how the technology works and can be replicated and installed at power plants and in the cement, pulp and paper, iron, and steel industries.
This influx of cash will help fund the government’s previously announced plans to finance four direct air capture hubs (DAC hubs) that remove CO2 from the air and store it underground.
In addition to this funding and the four CO2 removal facilities, the DOE also announced programs that will bolster research on carbon removal technology and provide grants to state and local governments and utilities for carbon use. These programs are funded through the bipartisan infrastructure law.
What Else Is the Government Offering to Boost DAC Commercialization?
On top of offering grants to build these carbon-absorbing facilities, the government is also offering a tax credit for carbon sequestration. All carbon absorption is eligible for a tax credit of $85 per metric ton when it’s permanently stored or $60 when it’s used for enhanced oil recovery (EOR) or industry.
To be eligible for this tax credit, power plants must absorb at least 18,750 metric tons of CO2 annually, and other industries must absorb at least 12,500 tons.
On top of this, organizations that build carbon-absorption facilities will receive an even larger tax credit of $180 per metric ton of carbon removed and permanently stored and $130 per metric ton of carbon used for enhanced oil recovery or industry. To qualify for the tax credit, these facilities must absorb at least 1,000 tons of carbon annually.
So, if a facility can absorb the 1 million metric tons of CO2, as the U.S. government anticipates, it can get a hefty $130 million to $180 million tax credit.
For all the tax credits mentioned above, organizations have until 2033 to begin constructing their carbon absorption technology to qualify — a seven-year extension on the previous tax credits.
How Much CO2 Can These Facilities Remove?
There has been a lot of development in CO2 removal technology. Currently, 18 direct air capture plants operate worldwide, each capturing 0.01 megatons (Mt) — a megaton is 1 million tons — of CO2 annually. The first of the facilities funded through this initiative is already in advanced development, and it’s projected to remove 1 Mt of CO2 annually. That’s equal to removing over 200,000 fossil-fuel-burning vehicles off the road.
By 2030, experts anticipate the technology will be available to scale these facilities up to 60 Mt of CO2 removal annually.
What Will Happen with the Captured CO2?
You’re likely wondering what happens to all the CO2 these facilities capture. They can’t store it forever, right? The storage facilities are designed for permanent geological storage — storage deep within geological formations. One permanent solution in the works is a plant that pumps the CO2 underground so it can combine with basalt and turn into stone.
However, other options exist too, such as using the captured carbon in food processing or creating sustainable synthetic fuel. In these instances, the organizations operating these carbon capture facilities can sell the CO2 to other companies to help recoup some of their costs.
Some examples of how this CO2 can be used include:
- Enhanced oil recovery: When an oil well runs dry, a small amount of oil is often left in the bottom. Oil companies then rely on pressure — often from pressurized CO2 — to get the leftover oil out of the ground.
- Synthetic fuels: When combined with hydrogen, CO2 becomes a synthetic fuel that various industries can burn. Then, these industries can recapture the CO2 emissions to prevent releasing it into the atmosphere again. They then restart the process, making it almost like a renewable energy source.
- Crop growth: Plants and trees use CO2 for photosynthesis, and selling compressed CO2 to greenhouses can help spur crop yield. One company sells 900 metric tons (tonnes) of CO2 to a pickle company to aid in cucumber growth.
How Much Does It Cost to Capture and Store Carbon?
Capturing carbon and storing it is far from a free act. These companies will incur significant expenses in performing this important climate action. Depending on the facility, capturing a metric ton of CO2 costs between $100 and $1,000. However, experts in the field say these estimates are “unduly pessimistic” and believe this cost can get as low as $94 per tonne as technology advances.
As the technology continues to develop and lowers in cost, this price could fall even further, making it a reality for more industries to install them at their factories and power plants. And the U.S. government is helping push this along with all the funds it’s pouring into the environment-saving technology.
Who Bid for a $500 Million U.S. Climate Grant for Direct Air Carbon Capture?
Two corporations have partnered with a nonprofit organization to bid for a $500 million grant from the U.S. to build a commercial direct air capture facility. The two corporations are Switzerland’s Climeworks and California’s Heirloom, and the nonprofit joining the project is Battelle.
These three organizations are no strangers to climate technology. Battelle has worked with carbon capture tech in the past and even managed some of the government’s centers and labs. Heirloom operates a small-scale carbon-capture demonstration project in California, and Climeworks operates the largest DAC facility in the world, which removes 4,000 metric tons of CO2 annually.
Other companies are closing in on applying for federal funding for their DAC projects. Occidental Petroleum plans to build a $1.1 billion DAC facility in Texas, with a projected start in 2024. Another company in California plans to build a facility in Wyoming that could remove 5 million metric tons of CO2 annually by 2030.
Other organizations are likely putting together proposals to deliver to the U.S. Department of Energy for review, and we’ll learn more about those as they are approved and funded.
Who Is Funding Carbon Capture?
While the U.S. Department of Energy is heading up these initiatives, the funding will come from a different source. Both the $3.7 billion to fund the four decarbonization facilities and the $2.52 billion to fund de-risking of carbon-capture technology and developing carbon-capture demonstrations will come from President Biden’s $1 trillion bipartisan infrastructure law. This law earmarked funds for refurbishing roads, bridges, and airports as well as reducing carbon emissions.
What Carbon Removal Organizations Are on the Stock Market?
With a healthy influx of cash from the federal government, carbon removal companies on the stock market may be a sound investment for climate-focused investors. Some publicly traded companies to consider include:
- Global Thermostat
- Occidental Petroleum
- Equinor
- Aker Carbon Capture
- Delta CleanTech
These five companies are all traded publicly on the stock market, but a leader in this space, Climeworks, is not. You may still want to watch Climeworks, as it may choose to go public and offer shares on the open market.
DAC Facilities Will Help, But You Can Still Play a Role
The DOE’s major funding to kick-start U.S. carbon-removal industry will likely be a big boost to our goal of reaching net-zero emissions as a nation. The potential to remove millions of tons of CO2 is just one part of the equation. This will also help commercialize the technology, which can drive down the price to build DAC facilities and make them even more efficient, compounding our ability to suck CO2 from the atmosphere and store it or reuse it in various eco-friendly ways.
While these DAC facilities will help, you can still play a huge role by reducing your carbon footprint by purchasing carbon credits. These credits can offset a wide range of things, including commercial flights, vacations, and more.
Check out Terrrapass’ wide range of carbon credits, and find one that can help you offset your CO2 emissions and help slow the impacts of climate change and global warming.
Brought to you by terrapass.com
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DGB Group (Euronext: DGB) stands at a defining crossroads in its corporate journey. Where just a few years ago the company was focused on restructuring and resolving legacy challenges, it is now demonstrating real momentum: audited financial results, commercial traction in the voluntary carbon market, and a strong pipeline of international nature restoration projects. In a recent interview on RTL7–a Dutch television channel known for its business and financial programming–CEO Selwyn Duijvestijn offered a candid reflection on this progress. This article highlights the key takeaways.
Disseminated on behalf of StorEn.
Demand for home energy storage is booming, with up to 47% of US homes expected to have rooftop solar installations by 2050. But there’s one major flaw: the batteries powering those systems don’t last.
That’s why StorEn has created a home battery with the potential to last twice as long as Tesla’s Powerwall (the current market leader).
Here’s why investors need to watch this company.
How StorEn Is Solving the Home Battery Problem
Most home battery systems, including Tesla’s Powerwall, rely on lithium-ion technology. These batteries degrade quickly, pose safety risks, and create environmental waste. They typically need replacement every 5–10 years and aren’t built for long-term use. They can also burn for days when disaster strikes, releasing toxic fumes, as we saw in the recent California wildfires.
That’s why the most advanced power plants in the world have been using vanadium flow technology. It’s the same reliable, low-risk battery tech that powers major cities around the world today.
No one has been able to scale vanadium flow tech down to the residential level. But StorEn is doing it with their first-of-its-kind vanadium flow battery for homes. Instead of 10 years, it’s built to last 20. It’s also small enough to fit inside a garage, with a non-flammable and 100% recyclable design.
Why StorEn Is A Major Energy Disruptor
The residential energy storage market is expected to surpass $90 billion by 2033, and lithium-ion batteries simply aren’t sustainable enough to meet demand.
That’s why, while Tesla’s Powerwall holds 62% of the market, StorEn is a prime contender to dominate in the rise of home energy storage.
Not only can StorEn power homes for up to 20 years, but their solution also unlocks major commercial potential in the telecom and microgrid markets.
Amid this once-in-a-generation shift in energy, StorEn has all the pieces to thrive. What’s more, they have the track record to prove it.
StorEn Is Proving Themselves As We Speak
With a pipeline of $11M+ in forecasted revenue and a community of 9,000+ investors already, StorEn is on track to become the leader in long-duration home energy storage.
The company is led by pioneers in energy storage and battery chemistry, including CEO Angelo D’Anzi, a 23-year veteran in fuel cell and electrolyzer development. Angelo himself holds 18 WIPO patents in Vanadium Flow Batteries and Fuel Cells.
Now, this team has patented a vanadium flow battery compact enough to power homes—with the same durability and reliability trusted by cities and industrial plants.
And you have an opportunity to join them.
Why Now Is the Time to Invest in StorEn
As clean energy adoption grows, the need for longer-lasting, safer, and more sustainable batteries is becoming urgent.
StorEn has raised $12.5M from 9,000+ investors and is preparing for global expansion.
As lithium supply chains face pressure and investors seek genuine innovation, StorEn’s vanadium flow technology offers the long-term solution the market has been anticipating.
Become a StorEn shareholder as they redefine energy storage.
This is a paid advertisement for StorEn’s Regulation CF offering. Please read the offering circular at https://invest.storen.tech/
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Carbon Footprint
Saudi Arabia’s Carbon Ambition: NEOM’s Enowa and VCM Ink 30M Tonnes Carbon Credit Deal
The Voluntary Carbon Market Company (VCM) and Enowa, NEOM’s energy and water arm, have struck a landmark deal to deliver at least 30 million tonnes of high-integrity carbon credits by 2030. This long-term agreement shows Enowa’s promise to offset its unavoidable emissions. It also supports global climate action. This is especially true for projects in the Global South, which gain stable, long-term funding. The first delivery occurred in December 2024.
VCM launched Saudi Arabia’s first carbon credit exchange in November 2024. It was founded by the Public Investment Fund (PIF) with 80% ownership and the Saudi Tadawul Group with 20%.
The platform offers top-level carbon trading, clear price discovery, global registry access, and aims to support Islamic finance structures. It also operates an auction system and will introduce spot trading in 2025.
This agreement highlights the growing demand. The global voluntary carbon market is expected to rise from $2 billion in 2020 to $250 billion by 2050. This growth is fueled by both companies and projects.
A Game-Changing Carbon Credit Pact
The VCM–Enowa agreement is a big step in voluntary carbon markets. It moves from one-time purchases to a long-term approach. Under the deal, Enowa will secure 30 million tonnes of high-quality carbon credits by 2030—about 3 million tonnes annually. This steady volume helps stabilize the market for everyone. It also unlocks vital funding for climate projects worldwide.
For developers, especially in the Global South, such long-term offtake agreements mean:
- Reduce risk,
- Support scalability, and
- Allow for better project planning.
As VCM CEO Riham ElGizy noted:
“The long-term agreement between VCM and Enowa to facilitate the delivery of over 30 million tons of carbon credits by 2030 marks a significant moment in Saudi Arabia’s journey to drive growth in global voluntary carbon markets. It helps Enowa compensate for today’s emissions while creating sustainable infrastructure for the long term.”
Enowa, already active in previous VCM auctions, becomes the first company in Saudi Arabia to enter such a long-term deal. Acting CEO Jens Madrian said it reflects their commitment to NEOM’s goal of 100% renewable energy. NEOM’s green infrastructure vision aligns closely with Enowa’s emissions management strategy.
This deal is huge: 30 million tonnes over ten years equals the yearly emissions of a mid-sized industrial country. This sets a high standard for corporate climate action in the area.
Building a Mature Carbon Market in Saudi Arabia
The VCM–Enowa deal also strengthens Saudi Arabia’s growing carbon trading ecosystem. Launched in November 2024, VCM’s voluntary carbon exchange is the Kingdom’s first institutional-grade platform. It provides key market tools such as auctions, RFQ features, block trades, and a new spot market. These tools improve price transparency, boost liquidity, and give access to a global registry.
Through successful auctions in 2022, 2023, and 2024, VCM has transacted over 4.7 million tonnes of carbon credits with buyers from 15+ countries. Projects include reforestation, soil carbon, clean cookstoves, and renewables. These show a strong demand for quality credits in many regions.
VCM stands out by aligning with both international standards and regional needs. It is creating Shariah-compliant infrastructure. This allows more MENA-based investors to use ethical finance tools. Its support ecosystem helps project developers in Africa and the Middle East. It includes advisory services and registry integrations. This way, developers can gain visibility and find long-term buyers.
This platform arrives as voluntary carbon markets face scrutiny over credibility. Backed by PIF and Tadawul, VCM provides a transparent, high-integrity marketplace. As ICVCM and COP29’s Article 6.4 advance global standards, VCM is positioning itself to lead regionally and globally.
Saudi Arabia aims to replicate its energy market leadership in climate finance. VCM’s success could channel billions into emerging economies and close the climate finance gap—estimated at $1.5–$2 trillion annually by the UN and World Bank. Voluntary carbon markets are increasingly vital to this mission.
Enowa and NEOM: A Blueprint for Net Zero
Enowa, the energy and water subsidiary of NEOM, plays a central role in advancing Saudi Arabia’s carbon neutrality goals. As part of the futuristic NEOM development, Enowa is building a 100% renewable-powered energy system that relies on solar, wind, green hydrogen, and cutting-edge digital infrastructure. This carbon-free framework is central to NEOM’s ambition to become a global model for low-emission urban living.
Enowa’s long-term agreement with VCM reflects its strategy to tackle unavoidable emissions through high-integrity carbon credits, complementing its broader sustainability efforts.
The company is actively involved in deploying smart grid technologies and water recycling systems that support circular economies. Its approach aligns with international net-zero frameworks, aiming to drastically reduce operational emissions while fostering innovation in climate resilience.
$250B and Counting: Why Voluntary Carbon Markets Are Booming
Voluntary carbon markets are set for explosive growth. Reports predict an increase from $2 billion in 2020 to $250 billion by 2050, with interim estimates ranging from $45 billion to $100 billion by 2030.
MSCI forecasts market expansion from $1.4 billion in 2024 to potentially $35 billion in high-demand scenarios by 2030. Around the world, projects that cut or eliminate carbon are getting more funding through voluntary carbon credits. There is strong demand for credits that also support community development and protect biodiversity.
Why Corporate Commitments Demand Certainty
Companies—especially those in tech, energy, and manufacturing—seek reliable offsets to meet net-zero goals. Long-term purchase agreements like VCM–Enowa’s offer greater credibility and transparency than spot buys.
They make sure that top-quality credits come from projects in developing countries. This aligns emissions cuts with sustainable development. In turn, these agreements help build carbon market capacity in the Global South.
Challenges and the Path to Integrity: Fixing Trust in Carbon Credits
However, voluntary carbon markets face credibility issues. High-profile cases, such as problems in Kenya’s Northern Rangelands project—backed by Meta and Netflix—have sparked concerns. With Verra reviewing the project amid legal and environmental scrutiny, trust in carbon credits has taken a hit.
New rules from COP29’s Article 6.4 and efforts like ICVCM’s framework seek to enhance market integrity and transparency.
VCM’s institutional focus, long-term contracts, and integration with recognized standards are designed to reduce these risks by ensuring quality and oversight.
Saudi Arabia’s Big Carbon Bet Has Global Stakes
Meanwhile, Saudi Arabia’s move through VCM positions it at the forefront of voluntary carbon market expansion in the Middle East. Globally, Asian and South American countries are also scaling their own platforms and frameworks. Deals involving multinational firms and sovereign or semi-sovereign buyers lend scale and legitimacy to these markets.
This shift supports climate finance goals:
- Global climate funding currently stands at roughly $120 billion annually for low‑ and middle‑income countries, well short of the $300 billion yearly target by 2035 agreed at COP29.
Carbon markets like VCM can help fill that gap, particularly in driving private investment.
The VCM–Enowa agreement sets a new standard in voluntary carbon trading—long-term, high-volume, and high-integrity. Voluntary markets will likely grow a lot in the coming decades, and deals like this build trust and stability. They also provide financial security for climate projects in developing economies. With improved standards in place, voluntary carbon credits can become a powerful tool in global efforts to reach net-zero.
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