Dutch climate technology startup Skytree is providing the technology for the world’s first 100 per cent wind-powered Direct Air Capture (DAC) hub in Texas.
Project Concho Using Skytree Technology
Dubbed ‘Project Concho’, this ambitious project seeks to redefine carbon removal from the air by using cutting-edge DAC systems with renewable energy on an unprecedented scale. Set in Tom Green County, the project combines the expertise of innovators in carbon capture and renewable energy to address the now urgent need for scalable climate solutions. With its unique design and bold objectives, Project Concho could potentially provide a boost to combatting global CO₂ emissions.
What Is Direct Air Capture?
Direct Air Capture is a technology that removes carbon dioxide directly from the atmosphere. Unlike traditional carbon capture methods, which focus on emissions from industrial sources, DAC targets ambient air, i.e. it’s a tool for addressing legacy emissions. Once captured, CO₂ can either be stored underground or utilised in various industrial applications. While DAC technology is still in its infancy compared to other climate solutions, its potential to combat climate change at scale has drawn increasing attention and investment globally.
The Vision Behind Project Concho
Using a patented modular system called ‘Stratus’, Skytree’s advanced DAC technology, which is at the heart of Project Concho, enables the efficient capture and permanent storage of CO₂. What is particularly unusual about it in the DAC world is that it’s powered entirely by a wind farm built by Spanish renewable energy firm Greenalia, ensuring the project operates with a minimal environmental footprint.
When & How Much Carbon Will It Capture?
The initial phase of the project, scheduled to commence in 2028, aims to capture 30,000 tonnes of CO₂ annually, with plans to scale up to a staggering 500,000 tonnes per year. This scalability is central to Skytree’s modular design, which allows additional units to be seamlessly integrated as the project grows. As Elena Nikonova, Vice President of Skytree North America, says, “Deploying DAC at scale is necessary to drive down costs across the value chain and achieve greater impact.”
According to Statista.com “Global GHG emissions have continued to rise and reached a new high of 53 billion metric tons of carbon dioxide equivalent (GtCO₂e) in 2023”. This would mean that even at full capacity of 500,000 per year, this would require (many tens of) thousands of these (full-scale) projects to be running simultaneously aroundthe world, clearly a very ambitious task indeed! However, it is a start.
The Symbiotic Energy-DAC Relationship
A unique aspect of Project Concho is its synergistic relationship with the wind farm. DAC facilities are known for their high energy demands, which often make them financially and operationally challenging. However, Project Concho guarantees a consistent offloading of excess wind energy, ensuring stable revenue for Greenalia while securing low-cost renewable power for the DAC hub.
This mutually beneficial arrangement not only reduces operational costs for the DAC facility but also enhances the economic viability of wind energy projects. Alexandre Alonso, Senior Vice President of Business Development at Greenalia, has hailed this model as a “game-changer” for renewable energy partnerships.
Economic and Policy Context
The project has received significant support from the US government, reflecting a broader surge in DAC investments spurred by favourable policies and subsidies. For example, the Biden-Harris Administration recently announced $1.8 billion in funding for DAC technologies, adding to the lucrative 45Q tax credit established in the 2022 Inflation Reduction Act. Under this credit, operators can earn up to $180 per metric tonne of CO₂ captured and stored.
This policy framework, coupled with private investment, has positioned the United States as a global leader in carbon removal efforts. Skytree’s CEO, Rob van Straten, has previously noted in interviews that the US (at present) offers a unique combination of industrial demand and governmental backing, creating fertile ground for projects like Project Concho.
Benefits of the Project
If successful, Project Concho could set a new standard for integrating renewable energy and carbon capture technology. Its wind-powered approach not only minimises the carbon footprint of the DAC process but also demonstrates the feasibility of large-scale renewable energy utilisation in industrial applications.
The project is also expected to generate revenue through the sale of carbon credits, providing a financial incentive for industries to offset their emissions. By capturing and permanently storing CO₂ underground, it could directly contribute to global climate goals, such as limiting warming to 1.5°C above pre-industrial levels.
Project Concho’s scalable design could pave the way for similar ventures worldwide, particularly in regions with abundant renewable energy resources. As Nikonova says, this project “opens the door to even more ambitious and transformative carbon removal projects.”
Challenges and Criticisms
Despite its promise, it’s worth noting that Project Concho faces some challenges. The high upfront costs of both wind farms and DAC facilities remain a significant barrier, even with government subsidies. Critics also argue that DAC technologies divert attention and resources from more established and cost-effective climate solutions, such as renewable energy expansion and reforestation.
There is also scepticism regarding the reliance on carbon credits as a revenue model. For example, while they provide financial incentives for emissions reduction, carbon credits have been criticised for enabling industries to continue polluting rather than transitioning to cleaner practices. Ensuring transparency and accountability in the carbon credit market will be crucial for the long-term success and credibility of projects like Project Concho.
What About The ‘Trump Factor’?
The future of Project Concho and similar initiatives could, however, face a starkly different reality under the incoming Trump administration. Trump’s scepticism toward climate change (he once famously called it a “hoax”) and his track record of rolling back environmental regulations raise serious concerns about the level of federal support such projects might receive in the next few years. For example, Trump’s previous withdrawal from the Paris Agreement and reduced funding for renewable energy development highlight a likely focus on fossil fuels rather than progressive climate solutions like DAC. Without supportive policies or subsidies, the financial viability of large-scale carbon capture hubs could be severely undermined.
Will It Really Make A Dent?
Even with robust backing, some question whether DAC technologies can scale up quickly enough to meet the urgent need for carbon removal. Current DAC facilities capture only a minute fraction of the billions of tonnes of CO₂ emitted annually. To meet the IPCC’s target of limiting global temperature rise to 1.5°C, carbon removal technologies must achieve dramatic growth, something experts believe will require both significant technological advances and global political will. Additionally, the energy-intensive nature of DAC means that without renewable power integration, its environmental benefits could be negated. While initiatives like Project Concho show promise, their impact may be too limited unless accompanied by broader systemic changes.
Reduce Emissions First
Many critics also argue that more emphasis should be placed on reducing emissions at their source rather than relying on carbon capture to clean up the aftermath. Strategies such as transitioning industries to renewable energy, implementing stricter emissions standards, and investing in public transport and energy efficiency may offer immediate and cost-effective solutions. While DAC and similar technologies are valuable tools in the fight against climate change, their role must be complementary. Reducing emissions outright is not only faster but also addresses the root cause, making the overall climate effort far more sustainable.
Other Major Carbon Capture Projects
Project Concho is actually one of a growing list of ambitious carbon capture initiatives worldwide. Others include, for example:
Orca Plant, Iceland. Operational since 2021, this facility uses geothermal energy to capture and mineralise CO₂. It has a capacity of 4,000 tonnes per year but plans for significant expansion.
Boundary Dam, Canada. A coal-fired power station retrofitted with carbon capture technology, capable of capturing 1 million tonnes of CO₂ annually.
Porthos Project, Netherlands. A pipeline network under development to transport and store CO₂ emissions from industrial facilities beneath the North Sea.
What Does This Mean For Your Business?
The potential of Project Concho to reshape the landscape of carbon capture and renewable energy integration is undeniable in that it represents a bold step forward in addressing the complex challenge of global CO₂ emissions. By harnessing the power of wind energy to drive innovative DAC technology, the project demonstrates how industries can work together to create scalable, potentially impactful solutions. The promise of capturing up to 500,000 tonnes of CO₂ annually while maintaining a minimal environmental footprint highlights the ingenuity at the heart of this initiative, not to mention the ambition.
However, the challenges and criticisms cannot be overlooked. High costs, energy demands, and reliance on carbon credits present hurdles that must be navigated with care. Additionally, the political landscape, particularly under a Trump administration sceptical of climate science, could pose significant obstacles to the kind of support such projects need to thrive. These uncertainties make it clear that carbon capture cannot serve as a standalone solution. It must complement a broader strategy that prioritises reducing emissions at their source.
Project Concho, therefore, highlights both the potential and the limitations of current carbon capture efforts. While it offers a promising glimpse into a future where renewable energy and DAC technology work in tandem, it also reveals the urgent need for systemic change. A multifaceted approach i.e., combining bold innovation, supportive policies, and a relentless focus on reducing emissions, may be essential if we are to meet the scale of the climate crisis. Although Project Concho may appear to be a crucial piece of the puzzle, the world must not lose sight of the bigger picture.
