Utility Dive•22 days 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.