Direct Air Capture (DAC)
Technology that captures CO2 directly from ambient air (as opposed to from a smokestack). DAC requires significant energy and currently costs $400-$1,000+ per ton of CO2 removed, but costs are expected to decline with scale.
Why It Matters
DAC is one of the few ways to achieve "negative emissions" — actually removing historical CO2 from the atmosphere. The IRA provides $180/ton credits for DAC with permanent storage.
Related Topics
Related Terms
Carbon Capture and Storage (CCS)
Technologies that capture CO2 emissions from power plants or industrial facilities before they reach the atmosphere, then transport and store the CO2 permanently underground in geological formations.
45Q Tax Credit
A federal tax credit for capturing and permanently sequestering CO2. The IRA increased the credit to $85/ton for geological storage and $180/ton for direct air capture. Available for projects that capture specified minimum amounts annually.