Project Cypress DAC Hub team awarded funding from U.S. DOE

Key take-aways

Climeworks, alongside project lead Battelle and project partner Heirloom, has been awarded a contract from the U.S. Department of Energy covering $50 million in funding to kickstart the direct air capture (DAC) hub ‘Project Cypress’ in Louisiana
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, including working with local workforce development groups
Climeworks will now be entering the next phase of engineering over the next 18 months, identifying Louisiana-based partners, establishing the supply chain that will allow it to build out the plant, and conducting environmental studies and reviews

Climeworks acts as anchor DAC technology provider to Project Cypress

Project Cypress in Louisiana, where Climeworks is the anchor direct air capture technology provider, has been awarded a contract from the U.S. Department of Energy (DOE)’s Office of Clean Energy Demonstrations (OCED) alongside project lead Battelle and project partner Heirloom. Following negotiations that began last August, this $50 million in funding from OCED will establish one of the nation’s first direct air capture (DAC) hubs in Louisiana.

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 (CO₂) from the air every year by 2030. Project Cypress is eligible for up to $600 million in matched federal investment under this funding opportunity.

Daniel Nathan, Chief Project Development Officer at Climeworks

This is yet another milestone on the path to multi-megaton deployment in the U.S. With this award confirmation by the U.S. government for project Cypress, we can deepen engagement with all stakeholders and initiate tangible preparation. I’m excited and this is only the beginning.

The carbon dioxide (CO₂) removal technologies at Project Cypress 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.

Alongside this community engagement work, Climeworks will now be entering the next phase of engineering over the next 18 months, identifying Louisiana-based partners, establishing the supply chain that will allow it to build out the plant, and conducting environmental studies and reviews.