Project Cypress DAC Hub Team Awarded Funding from U.S. Department of Energy

Office of Clean Energy Demonstrations directs initial funding resulting from Bipartisan Infrastructure Law resulting from Bipartisan Infrastructure Law 

COLUMBUS, Ohio (March 27, 2024)—Project Cypress, a partnership led by Battelle with leading clean technology developers Climeworks and Heirloom, has been awarded a contract from the U.S. Department of Energy (DOE)’s Office of Clean Energy Demonstrations (OCED) to establish one of the nation’s first Direct Air Capture (DAC) Hubs in Louisiana following negotiations that began last August.

Funding for Project Cypress is a result of the Bipartisan Infrastructure Law’s Regional Direct Air Capture (DAC) Hubs program. With the initial award of $50 million from OCED, Project Cypress also will mobilize $51 million in private investment to begin the initial phase of the DAC Hub that, when fully operational, is intended to remove 1 million tons of excess carbon dioxide from the air every year by 2030. Project Cypress is eligible for up to $600 million in matched federal investment under this funding opportunity.  

Leaders of Project Cypress are determining final siting and storage options in Louisiana, with selected sites including privately owned land in Calcasieu Parish. Project Cypress is negotiating commercial arrangements with service providers, including with Gulf Coast Sequestration, and will use geology that has been studied extensively and deemed viable for safe, permanent carbon storage.

The carbon dioxide (CO₂) removal technologies will be powered by renewable energy and will verifiably remove CO₂ from the atmosphere and store it safely underground where it cannot worsen climate impacts. Louisiana has the ideal elements to support the scaling of carbon removal and storage technologies, featuring a long history serving as an energy leader in the U.S. The state maintains a large base of local talent and expertise in manufacturing and industrial energy and has the geologic storage capacity and available infrastructure to ensure project success.

In addition to removing CO₂ from the atmosphere, Project Cypress aims to make robust investments in the local community and region, creating new job pathways in the design, construction, and operation of the DAC Hub, including working with local workforce development groups to identify programs to assist in job training for the project.

The project partners and DOE have aligned on community benefits commitments that set parameters for designing workforce development and community and labor engagement strategies. This will be done in conjunction with communities impacted by the project and with leaders at DOE. 

Prior to award, Project Cypress partners engaged in a regional listening program that included more than 80 sessions with local groups and a community briefing in November 2023 that was attended by more than 150 people. To ensure community feedback continues to shape the project’s development, Project Cypress will expand its reach by developing a community engagement strategy with input from community partners through a two-way dialogue. Information on upcoming community engagement opportunities will be posted to projectcypress.com. 

Plans for a community workshop are underway with expectations for it to occur in summer 2024. The workshop will update the community with additional information about Project Cypress and share more information about the technologies and project partners involved and serve as an opportunity for two-way engagement between the project team and local community members. In the coming months, project partners will begin recruiting for a Community Engagement Council (CEC) with membership that is demographically representative of impacted communities/community groups. The CEC will serve as an advisory body for Project Cypress, ensuring that the community has a voice in development decisions about the DAC Hub. More information about the application process and a timeline for appointments will be forthcoming.

See the project fact sheet.

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