SEP’s Directive to the Senate’s Infrastructure Bill
SEP’s Cleantech Innovation Hubs Survey and Sectors System Can Direct the Implementation of Four Direct Air Capture Hubs Funded by the Senate’s Infrastructure Bill
By Delaney Khung
August 11, 2021
On Tuesday, the U.S. Senate passed its $1.2 trillion bipartisan infrastructure bill. The bill amends Section 969D of the Energy Policy Act of 2005 and designates $3.5 billion to the development of four regional direct air capture (DAC) hubs — each aimed to capture and sequester more than one million metric tons of CO2 from the atmosphere. The success of these four hubs partially depends on large initial capacity. Saoradh Enterprise Partners’ (SEP) inaugural Cleantech Innovation Hubs Survey locates the regions developing the DAC technology that is critical for large initial capacity.
SEP segments cleantech innovation into nine sectors and ranks 40 hubs by sector strength. One sector, titled Carbon and Minerals, includes the cleanup of mining, power production, oil, gas production, and the gas grid. Carbon capture, utilization, and storage technologies — including DAC — are tracked in this sector and represent a standout solution. The Cleantech Innovation Hubs Survey ranks hubs, or regionally connected cities, innovating Carbon and Mineral technologies based on research, technology development, venture development, and cleantech infrastructure. The five hubs strongest in the Carbon and Mineral sector are as follows:
Bay Area: San Francisco, Oakland, Berkeley, San Jose, Sunnyvale, and Santa Clara
Clean Range: Denver, Aurora, Lakewood, Boulder, and Fort Collins
Research Triangle: Durham, Chapel Hill, Raleigh, and Cary
New York: New York City, Newark, and Jersey City
D.C.: Washington D.C., Alexandria, and Arlington
Similarly, the Senate defines regional DAC hubs as regions or inter-regions with a network of DAC projects, CO2 consumers, CO2 transportation infrastructure, sequestration infrastructure, and storage capacity. Priority is given to two economically distressed communities, areas with existing carbon-intensive industries, and areas with large initial capacity. Areas with strong initial capacity correlate to areas with strong DAC innovation. Subsequently, SEP’s five Cleantech Innovation Hubs with strength in Carbon and Minerals may provide the Senate an accurate picture of successful DAC hub placement.
Applications for DAC hubs will be accepted within 180 days of the infrastructure bill’s enactment, and the Senate selects the four DAC hubs no later than three years after the application period closes. Allocation of all $3.5 billion is expected to occur before 2026.
Delaney Khung is an analyst at SEP and our Topic Reports Lead.