Utility Dive•about 1 month ago
Google just backed carbon capture tech for data center energy providers. Will other tech giants follow?
Key Takeaway
Google's investment in carbon capture for data centers creates a substantial market signal and opportunity for developers and IPPs to build and finance low-carbon generation assets.
AI Summary
- •Google's strategic backing of carbon capture (CC) technology signals a new, significant demand driver for decarbonized power, specifically for rapidly expanding data centers.
- •This initiative positions CC as a critical solution for large power consumers aiming to meet sustainability goals while ensuring reliable power for high-load growth.
- •Developers and IPPs should anticipate increased market interest and potential PPA opportunities for CC-equipped generation assets, likely leveraging IRA incentives (e.g., 45Q tax credits).
- •The move by a tech giant like Google could accelerate the commercial viability and deployment of CC across the U.S. power sector, influencing future energy procurement strategies.
Topics
ccgtdatacenteremissionsfinancingirapolicyppa
Article Content
The fast-growing electricity demands of data centers could be a game-changer for carbon capture technology in the U.S. power sector, say experts from the Payne Institute at the Colorado School of Mines.