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Ambient Carbon is doing the methane equivalent of point source carbon capture in dairy barns.

In the world of climate and energy, “emissions” is often shorthand for carbon dioxide, the most abundant anthropogenic greenhouse gas in the world. Similarly, talk of emissions capture and removal usually centers on the growing swath of technologies that either prevent CO2 from entering the atmosphere or pull it back out after the fact.
Discussions and frameworks for reducing methane, which is magnitudes more potent than CO2 in the short-term, have been far less common — but the potential impact could be huge.
“If you can accelerate the decrease of methane in the atmosphere, you actually could have a much more significant climate impact, much faster than with CO2,” Gabrielle Dreyfus, chief scientist at the Institute for Governance & Sustainable Development, told me. “People often talk about gigatons of CO2 removal. But because of the potency of methane, for a similar level of temperature impact, you’re talking about megatons.”
Over the past year or so, this conversation has finally started to gain traction. Last October, the National Academies of Sciences, Engineering, and Medicine released a report on atmospheric methane removal, recommending that the U.S. develop a research agenda for methane removal technologies and establish methodologies to assess their impacts. Dreyfus chaired the committee that authored the report.
And one startup, at least — Denmark-based Ambient Carbon — is trying to commercialize its methane-zapping tech. Last week, the company announced that it had successfully trialed its “methane eradication photochemical system” at a dairy barn in Denmark, eliminating the majority of methane from the barn’s air. It’s also aiming to deploy a prototype in the U.S., at a farm in Indiana, by year’s end.
The way the company’s process works is more akin to point source carbon capture, in which emissions are pulled from a smokestack, than it is to something like direct air capture, in which carbon dioxide is removed from ambient air. Inside a dairy barn, cows are continually belching methane, producing high concentrations of the gas that are typically vented into the atmosphere. Instead, Ambient Carbon captures this noxious air from the barn’s ventilation ducts and brings it into an enclosed reactor.
Inside the reactor, which uses electricity from the grid, UV light activates chlorine molecules, splitting their chemical bonds to form unstable radicals. These radicals then react with methane, breaking down the potent gas and converting it into CO2, water, and other byproducts. The whole process mimics the natural destruction of atmospheric methane, which would normally take a decade or more, while Ambient Carbon’s system does it in a matter of seconds. Much of the chlorine gets recycled back into the process, and the CO2 is released into the air.
That might sound less than ideal. Famously, carbon dioxide is bad. This molecule alone is responsible for two-thirds of all human-caused global warming. But because methane is over 80 times as potent as CO2 over a 20-year timeframe, and since it would eventually break down into carbon dioxide in the atmosphere anyway, accelerating that inevitable process turns out to be a net good for the climate.
“The amount of CO2 produced by methane when it oxidizes has about 50 times smaller climate effect than the methane that produced it,” Zeke Hausfather, a climate scientist and climate research lead at Stripe, told me. “So you get a 98% reduction in the warming effects by converting methane to CO2, which I think is a pretty good deal.”
As he sees it, preventing methane emissions in the first place or destroying the molecules before they’re released, as Ambient Carbon is doing, is far more impactful than pursuing after-the-fact atmospheric methane removal. Because while CO2 can linger in the air for centuries — making removal a necessity for near-term planetary cooling — when it comes to methane, “if you cut emissions, you cool the planet pretty quickly, because all that previous warming from methane goes away over the course of a decade or two.”
Agriculture represents 40% of global methane emissions, the largest single source, making the industry a ripe target for de-methane-ization. Ambient Carbon’s tech is only really effective when methane concentrations are relatively high, the company’s CSO, Matthew Johnson, told me — which still leaves a large addressable market given that in many parts of the world, cows are mostly kept in dairy barns, where methane accumulates.
In its trial, Ambient Carbon’s system eliminated up to 90% of dairy barn methane at concentrations ranging from 4.3 parts per million to 44 parts per million. But while the system can theoretically operate at the lower end of that range, Johnson told me it’s only truly energy efficient at 20 parts per million and above. “It’s a question of cost benefit, because we could remove 99% [of the methane from dairy barns] but if you do that, that marginal cost is more energy,” Johnson explained, telling me that the company’s system will likely aim to remove between 80% to 90% of barn methane.
One reason methane destruction and removal technology hasn’t gained much traction is that capturing methane — whether from the atmosphere, a smokestack, or a ventilation duct — is far more challenging than capturing CO2, given that it’s so much less prevalent in the atmosphere. Atmospheric methane is relatively diffuse, with an average concentration of just about 2 parts per million, compared with roughly 420 parts per million for CO2. “I heard the analogy used that if pulling carbon dioxide out of the atmosphere is finding a needle in a haystack, pulling methane out of the atmosphere is pulling dust off the needle in that haystack,” Dreyfus told me.
Because of methane’s relative chemical stability, removing it from the air also requires a strong oxidant, such as chlorine radicals, to break it down. CO2 on the other hand, can be separated from the air with sorbents or membranes, which is a technically simpler process.
Other nascent approaches to methane destruction and removal include introducing chlorine radicals into the open atmosphere and adding soil amendments to boost the effectiveness of natural methane sinks. Among these options, Ambient Carbon’s approach is the furthest along, most well-understood, and likely also lowest-risk. After its successful field trial, “there is not much uncertainty remaining about whether or not this does the claimed thing,” Sam Abernethy, a methane removal scientist at the nonprofit Spark Climate Solutions, told me. “The main questions remaining are whether they can be cost-effective at progressively lower concentrations, whether they can get more methane destroyed per energy input. And that’s something they’ve been improving every year since they started.”
Venture firms have yet to jump onboard though. Thus far, Ambient Carbon’s funding has come from agricultural partners such as Danone North America and Benton Group Dairies, which are working with the company to conduct its field trials. Additional collaboration and financial support comes from organizations such as the Hofmansgave Foundation, a Danish philanthropic group, and Innovation Fund Denmark. Johnson told me the startup also has a number of unnamed angel investors.
Whether or not this tech could ever become efficient enough to tackle more dilute methane emissions — and thus make true atmospheric methane removal feasible — remains highly uncertain. Questions also remain about how these technologies, if proven to be workable, would ultimately be able to scale. For instance, would methane destruction and removal depend more on government policies and regulations, or on market-based incentives?
In the short term, voluntary corporate commitments appear to be the main drivers of interest when it comes to methane destruction specifically. “A lot of food companies have made public pledges that they’re going to reduce their greenhouse gas emissions,” Johnson told me. As he noted, ubiquitous brands such as Kraft Heinz, General Mills, Danone, and Starbucks have all joined the Dairy Methane Action Alliance, which aims to “accelerate action and ambition to drive down methane emissions across dairy supply chains,” according to its website.
The way Ambient Carbon envisions this market working, its food industry partners would be the ones to encourage farms to buy the startup’s methane-destroying units, and would pay farmers a premium for producing low-emissions products. This would enable farmers to cover the system’s cost within five years, and eventually generate additional revenue. Whether the food companies would pass the green premium onto consumers, however, remains to be seen.
But as with the carbon dioxide removal sector, voluntary corporate commitments and carbon crediting schemes will likely only go so far. “Most of what’s going to drive methane elimination is going to be policy,” Hausfather told me. Denmark, where Ambient Carbon conducted its first trial, is set to become the first country in the world to implement a tax on agricultural emissions, starting in 2030. Europe also has a comprehensive greenhouse gas reduction framework, as do states such as California, Washington, and New York.
“It’s such a low-hanging fruit of climate impacts that it’s hard to imagine it’s not going to be regulated pretty substantially in the future,” Hausfather told me. But stringent regulatory requirements are often shaped by the technologies that have been established as effective. And in that sense, what Ambient Carbon is doing today could help pave the way for the ambitious methane targets of tomorrow.
“Moving from a lot of the voluntary pledges that we have towards more mandatory requirements I think is going to have a really important role to play,” Dreyfus told me. “But I think it’s going to be easier if we have more proven technologies to get there.”
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It’s either reassure investors now or reassure voters later.
Investor-owned utilities are a funny type of company. On the one hand, they answer to their shareholders, who expect growing returns and steady dividends. But those returns are the outcome of an explicitly political process — negotiations with state regulators who approve the utilities’ requests to raise rates and to make investments, on which utilities earn a rate of return that also must be approved by regulators.
Utilities have been requesting a lot of rate increases — some $31 billion in 2025, according to the energy policy group PowerLines, more than double the amount requested the year before. At the same time, those rate increases have helped push electricity prices up over 6% in the last year, while overall prices rose just 2.4%.
Unsurprisingly, people have noticed, and unsurprisingly, politicians have responded. (After all, voters are most likely to blame electric utilities and state governments for rising electricity prices, Heatmap polling has found.) Democrat Mikie Sherrill, for instance, won the New Jersey governorship on the back of her proposal to freeze rates in the state, which has seen some of the country’s largest rate increases.
This puts utilities in an awkward position. They need to boast about earnings growth to their shareholders while also convincing Wall Street that they can avoid becoming punching bags in state capitols.
Make no mistake, the past year has been good for these companies and their shareholders. Utilities in the S&P 500 outperformed the market as a whole, and had largely good news to tell investors in the past few weeks as they reported their fourth quarter and full-year earnings. Still, many utility executives spent quite a bit of time on their most recent earnings calls talking about how committed they are to affordability.
When Exelon — which owns several utilities in PJM Interconnection, the country’s largest grid and ground zero for upset over the influx data centers and rising rates — trumpeted its growing rate base, CEO Calvin Butler argued that this “steady performance is a direct result of a continued focus on affordability.”
But, a Wells Fargo analyst cautioned, there is a growing number of “affordability things out there,” as they put it, “whether you are looking at Maryland, New Jersey, Pennsylvania, Delaware.” To name just one, Pennsylvania Governor Josh Shapiro said in a speech earlier this month that investor-owned utilities “make billions of dollars every year … with too little public accountability or transparency.” Pennsylvania’s Exelon-owned utility, PECO, won approval at the end of 2024 to hike rates by 10%.
When asked specifically about its regulatory strategy in Pennsylvania and when it intended to file a new rate case, Butler said that, “with affordability front and center in all of our jurisdictions, we lean into that first,” but cautioned that “we also recognize that we have to maintain a reliable and resilient grid.” In other words, Exelon knows that it’s under the microscope from the public.
Butler went on to neatly lay out the dilemma for utilities: “Everything centers on affordability and maintaining a reliable system,” he said. Or to put it slightly differently: Rate increases are justified by bolstering reliability, but they’re often opposed by the public because of how they impact affordability.
Of the large investor-owned utilities, it was probably Duke Energy, which owns electrical utilities in the Carolinas, Florida, Kentucky, Indiana, and Ohio, that had to most carefully navigate the politics of higher rates, assuring Wall Street over and over how committed it was to affordability. “We will never waver on our commitment to value and affordability,” Duke chief executive Harry Sideris said on the company’s February 10 earnings call.
In November, Duke requested a $1.7 billion revenue increase over the course of 2027 and 2028 for two North Carolina utilities, Duke Energy Carolinas and Duke Energy Progress — a 15% hike. The typical residential customer Duke Energy Carolinas customer would see $17.22 added onto their monthly bill in 2027, while Duke Energy Progress ratepayers would be responsible for $23.11 more, with smaller increases in 2028.
These rate cases come “amid acute affordability scrutiny, making regulatory outcomes the decisive variable for the earnings trajectory,” Julien Dumoulin-Smith, an analyst at Jefferies, wrote in a note to clients. In other words, in order to continue to grow earnings, Duke needs to convince regulators and a skeptical public that the rate increases are necessary.
“Our customers remain our top priority, and we will never waver on our commitment to value and affordability,” Sideris told investors. “We continue to challenge ourselves to find new ways to deliver affordable energy for our customers.”
All in all, “affordability” and “affordable” came up 15 times on the call. A year earlier, they came up just three times.
When asked by a Jefferies analyst about how Duke could hit its forecasted earnings growth through 2029, Sideris zeroed in on the regulatory side: “We are very confident in our regulatory outcomes,” he said.
At the same time, Duke told investors that it planned to increase its five-year capital spending plan to $103 billion — “the largest fully regulated capital plan in the industry,” Sideris said.
As far as utilities are concerned, with their multiyear planning and spending cycles, we are only at the beginning of the affordability story.
“The 2026 utility narrative is shifting from ‘capex growth at all costs’ to ‘capex growth with a customer permission slip,’” Dumoulin-Smith wrote in a separate note on Thursday. “We believe it is no longer enough for utilities to say they care about affordability; regulators and investors are demanding proof of proactive behavior.”
If they can’t come up with answers that satisfy their investors, ultimately they’ll have to answer to the voters. Last fall, two Republican utility regulators in Georgia lost their reelection bids by huge margins thanks in part to a backlash over years of rate increases they’d approved.
“Especially as the November 2026 elections approach, utilities that fail to demonstrate concrete mitigants face political and reputational risk and may warrant a credibility discount in valuations, in our view,” Dumoulin wrote.
At the same time, utilities are dealing with increased demand for electricity, which almost necessarily means making more investments to better serve that new load, which can in the short turn translate to higher prices. While large technology companies and the White House are making public commitments to shield existing customers from higher costs, utility rates are determined in rate cases, not in press releases.
“As the issue of rising utility bills has become a greater economic and political concern, investors are paying attention,” Charles Hua, the founder and executive director of PowerLines, told me. “Rising utility bills are impacting the investor landscape just as they have reshaped the political landscape.”
Plus more of the week’s top fights in data centers and clean energy.
1. Osage County, Kansas – A wind project years in the making is dead — finally.
2. Franklin County, Missouri – Hundreds of Franklin County residents showed up to a public meeting this week to hear about a $16 billion data center proposed in Pacific, Missouri, only for the city’s planning commission to announce that the issue had been tabled because the developer still hadn’t finalized its funding agreement.
3. Hood County, Texas – Officials in this Texas County voted for the second time this month to reject a moratorium on data centers, citing the risk of litigation.
4. Nantucket County, Massachusetts – On the bright side, one of the nation’s most beleaguered wind projects appears ready to be completed any day now.
Talking with Climate Power senior advisor Jesse Lee.
For this week's Q&A I hopped on the phone with Jesse Lee, a senior advisor at the strategic communications organization Climate Power. Last week, his team released new polling showing that while voters oppose the construction of data centers powered by fossil fuels by a 16-point margin, that flips to a 25-point margin of support when the hypothetical data centers are powered by renewable energy sources instead.
I was eager to speak with Lee because of Heatmap’s own polling on this issue, as well as President Trump’s State of the Union this week, in which he pitched Americans on his negotiations with tech companies to provide their own power for data centers. Our conversation has been lightly edited for length and clarity.
What does your research and polling show when it comes to the tension between data centers, renewable energy development, and affordability?
The huge spike in utility bills under Trump has shaken up how people perceive clean energy and data centers. But it’s gone in two separate directions. They see data centers as a cause of high utility prices, one that’s either already taken effect or is coming to town when a new data center is being built. At the same time, we’ve seen rising support for clean energy.
As we’ve seen in our own polling, nobody is coming out looking golden with the public amidst these utility bill hikes — not Republicans, not Democrats, and certainly not oil and gas executives or data center developers. But clean energy comes out positive; it’s viewed as part of the solution here. And we’ve seen that even in recent MAGA polls — Kellyanne Conway had one; Fabrizio, Lee & Associates had one; and both showed positive support for large-scale solar even among Republicans and MAGA voters. And it’s way high once it’s established that they’d be built here in America.
A year or two ago, if you went to a town hall about a new potential solar project along the highway, it was fertile ground for astroturf folks to come in and spread flies around. There wasn’t much on the other side — maybe there was some talk about local jobs, but unemployment was really low, so it didn’t feel super salient. Now there’s an energy affordability crisis; utility bills had been stable for 20 years, but suddenly they’re not. And I think if you go to the town hall and there’s one person spewing political talking points that they've been fed, and then there’s somebody who says, “Hey, man, my utility bills are out of control, and we have to do something about it,” that’s the person who’s going to win out.
The polling you’ve released shows that 52% of people oppose data center construction altogether, but that there’s more limited local awareness: Only 45% have heard about data center construction in their own communities. What’s happening here?
There’s been a fair amount of coverage of [data center construction] in the press, but it’s definitely been playing catch-up with the electric energy the story has on social media. I think many in the press are not even aware of the fiasco in Memphis over Elon Musk’s natural gas plant. But people have seen the visuals. I mean, imagine a little farmhouse that somebody bought, and there’s a giant, 5-mile-long building full of computers next to it. It’s got an almost dystopian feel to it. And then you hear that the building is using more electricity than New York City.
The big takeaway of the poll for me is that coal and natural gas are an anchor on any data center project, and reinforce the worst fears about it. What you see is that when you attach clean energy [to a data center project], it actually brings them above the majority of support. It’s not just paranoia: We are seeing the effects on utility rates and on air pollution — there was a big study just two days ago on the effects of air pollution from data centers. This is something that people in rural, urban, or suburban communities are hearing about.
Do you see a difference in your polling between natural gas-powered and coal-powered data centers? In our own research, coal is incredibly unpopular, but voters seem more positive about natural gas. I wonder if that narrows the gap.
I think if you polled them individually, you would see some distinction there. But again, things like the Elon Musk fiasco in Memphis have circulated, and people are aware of the sheer volume of power being demanded. Coal is about the dirtiest possible way you can do it. But if it’s natural gas, and it’s next door all the time just to power these computers — that’s not going to be welcome to people.
I'm sure if you disentangle it, you’d see some distinction, but I also think it might not be that much. I’ll put it this way: If you look at the default opposition to data centers coming to town, it’s not actually that different from just the coal and gas numbers. Coal and gas reinforce the default opposition. The big difference is when you have clean energy — that bumps it up a lot. But if you say, “It’s a data center, but what if it were powered by natural gas?” I don’t think that would get anybody excited or change their opinion in a positive way.
Transparency with local communities is key when it comes to questions of renewable buildout, affordability, and powering data centers. What is the message you want to leave people with about Climate Power’s research in this area?
Contrary to this dystopian vision of power, people do have control over their own destinies here. If people speak out and demand that data centers be powered by clean energy, they can get those data centers to commit to it. In the end, there’s going to be a squeeze, and something is going to have to give in terms of Trump having his foot on the back of clean energy — I think something will give.
Demand transparency in terms of what kind of pollution to expect. Demand transparency in terms of what kind of power there’s going to be, and if it’s not going to be clean energy, people are understandably going to oppose it and make their voices heard.