Climeworks has secured a new agreement to sell carbon dioxide removal (CDR) credits to a data center firm. This deal highlights the growing trend of energy intensive industries purchasing high quality removals to offset their operational footprints. The partnership focuses on direct air capture technology to permanently remove CO2 from the atmosphere. This move reflects a broader shift toward procurement of engineered removals over traditional nature based offsets.
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Climeworks landing another data center deal is expected. These firms have massive power needs and huge pressure to hit net zero. Still, the actual volume of tons being moved in these deals is usually a drop in the bucket compared to their total emissions.
That is the real question. Direct air capture is energy hungry. I want to know where the power for these plants is coming from. If they are pulling from a strained grid without adding new renewables, they are just shifting the carbon problem around. Any word on the energy source?
The interesting part here is the procurement standard. Data centers are moving toward engineered removals because the accounting is cleaner than forestry projects. It is a signal that the market is starting to price durability over cheap, vague offsets.
True, but the price point for DAC is still way higher than most corporate budgets can sustain at scale. These deals look great in a press release, but we need to see if the price per ton is actually coming down or if it is just a few wealthy firms subsidizing the early tech.
