Climeworks, a global leader in carbon removal technology, is set to construct a $100 million facility in Calcasieu Parish, Louisiana. This plant intends to capture up to 1 million tons of carbon dioxide directly from the air annually by 2030. The development is a significant step in addressing climate change, leveraging innovative direct air capture (DAC) technology, which differs from traditional methods focused on emissions from specific sources.
The planned facility, Project Cypress Southwest, will be located on private land near the Port of Vinton. It is part of a larger initiative, the Project Cypress Direct Air Capture Hub, which aims to become one of the world's largest DAC hubs. This ambitious project will be supported by an additional $50 million in private investments, complementing the initial funding from the U.S. Department of Energy.
The economic impact of the plant on the region is notable. It is expected to generate 800 construction jobs and more than 300 indirect positions, offering average salaries of $123,000 for 140 permanent employees. In collaboration with Battelle, an independent nonprofit science organization, Climeworks is working to secure a suitable site for safely storing the captured carbon dioxide underground.
Susan B. Bourgeois, Secretary of Louisiana Economic Development, emphasized the state's strategic role in the evolution of the energy sector, highlighting the benefits this project brings in terms of employment and innovation. The development aligns with Louisiana’s robust history in manufacturing and industrial activities, which Daniel Nathan, Climeworks' Chief Project Development Officer, acknowledges as beneficial due to the region’s ideal workforce and geographical characteristics.
The company's decision to establish operations in Louisiana is driven by the state's unique geological features, particularly the extensive capacity for safe and permanent carbon dioxide storage in the subsurface layers. As the company sets sights on beginning construction by the third quarter of 2026, Climeworks remains committed to running its facilities on renewable energy, as exemplified by its existing plant in Iceland.
To ensure the project's success, the Louisiana Economic Development has provided Climeworks with a comprehensive support package. This includes workforce development solutions through LED FastStart and participation in the state's Industrial Tax Exemption and Quality Jobs programs. These measures are pivotal in fostering the growth and establishment of this high-tech, environmentally beneficial endeavor. The arrival of Climeworks in Louisiana not only positions the state as a forward-thinking energy leader but also as a contributor to global climate initiatives aiming for a sustainable future.
