EDF Renewables, Partners to Develop DAC Facilities in Texas

EDF Renewables North America (EDFR) is developing direct air capture (DAC) facilities in Texas in collaboration with climate technology company Skytree, and Dutch carbon capture, utilization, and storage (CCUS) company Return Carbon.

Return Carbon and EDFR have executed a term sheet for delivering renewable power to large-scale DAC facilities in Texas, which will yield cost-competitive certified carbon removal credits. Skytree will provide the DAC technology and Verified Carbon will support the project with its geological sequestration expertise, Skytree said in a news release.

Return Carbon aims to develop 500,000 metric tons per year of negative emissions. The project aims to integrate DAC technology, a direct renewable power source, and the Gulf Coast’s rich geological carbon storage capacity, according to the release. The term sheet targets energy optimization through flexible use of wind energy generated by EDFR’s facilities.

The partnership envisions a behind-the-meter power purchase agreement (PPA) structure that “ensures price stability while retaining upside potential during peak electricity pricing, resulting in significant revenue optimization for EDFR’s operating renewable energy parks and competitive access to energy for the DAC park,” Skytree said. "Behind the meter" refers to energy generation, storage, and consumption systems located on the customer's side of the utility meter, allowing for on-site energy management.

‍Skytree, Return Carbon and Verified Carbon were selected through a request-for-proposal initiative launched by EDFR last year.

Gabe Messercola, Associate Director for Capital Improvements at EDF Renewables, said, “A key part of EDF Renewables’ strategy is to drive progress by accelerating the shift towards decarbonization. Direct Air Capture (DAC) can play a key role in the creation of a sustainable energy future, but the industry needs to scale quickly. Co-locating DAC development behind-the-meter will optimize renewable energy production, reduce exposure to power market fluctuations, and foster the growth of both industries. Return’s commitment to operational flexibility utilizing Skytree’s equipment, demonstrates that DAC can effectively complement intermittent renewable sources, contributing to a stronger and more resilient energy grid than we have today”.

Martijn Verwoerd, Return Carbon Managing Director, said, “The agreement with EDF Renewables is a stepping-stone for DAC development, where we can use our combined portfolios and expertise to accelerate carbon removal and provide stability on the power market. This collaboration pioneers the integration of modular DAC technology with a dedicated renewable power source and co-located carbon sequestration, creating a scalable, cost-effective, and environmentally sustainable solution”.

Elena Nikonova, VP for Strategy North America and APAC at Skytree, said, “We are honored to have been chosen alongside Return Carbon to provide our DAC technology to this large-scale and purposeful project. EDF Renewables is demonstrating true leadership in circular sustainability by integrating carbon removal directly into their business strategy. By utilizing excess renewable energy from their wind farms to power DAC, they are setting a powerful example for how we can address the climate crisis. This project is a crucial step towards the gigaton-scale carbon removal needed by 2050, a goal Skytree is deeply committed to supporting”.

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