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That’s how much the U.S. should be spending per year by 2050 to achieve net zero, according to a new Rhodium Group report.

Money seems to be pouring into the field of carbon removal from every direction. Every other week there’s an announcement about a new project. Multimillion dollar carbon removal procurement deals are on the rise. The Department of Energy is rolling out grants as part of its $3.5 billion “direct air capture” hubs program and also funding research and development. Some carbon removal companies can even start claiming a $130 tax credit for every ton of CO2 they suck up and store underground.
The federal government alone spends just under $1 billion per year on carbon removal research, development, and deployment. According to a new report from the Rhodium Group, however, the U.S. is going to have to spend a lot more — roughly $100 billion per year by 2050 — if carbon dioxide removal, or CDR, is ever going to become a viable climate solution.
“The current level of policy support is nowhere near what's needed for CDR to play the role that people say it needs to play in solving climate change,” Jonathan Larsen, one of the authors, told me. “We wanted to reset the policy conversation with that in mind.”
Carbon removal is what’s implied by the “net” in net-zero — a way to compensate for whatever polluting activities are going to take longer to replace with clean solutions. It will be impossible to achieve net-zero emissions by 2050, either at the national or global level, without removing carbon from the atmosphere. But how much carbon removal will we need, and how do we make sure we’re ready to deploy it?
These questions are, in a sense, unique to the field. When we talk about cutting carbon emissions from buildings or transportation, experts are relatively confident in the set of solutions and the scale of the task — they know how many buildings and cars there are and can make reasonable estimates of growth rates.
But carbon removal is a moving target. We know how much we’re removing today — roughly 5 million metric tons, mostly from nature-based solutions like planting trees. Based on current policies, Rhodium estimates we could scale that up to about 50 million metric tons by 2035. But figuring out how much we need depends entirely on how successful we are at decarbonizing everything else. Even if we know we need to electrify all our cars, for example, no one can say whether that will happen by 2050, or at least not with any meaningful degree of certainty.
The Rhodium Group report attempts to narrow the range of this uncertainty so that policymakers can better attack the problem. The authors looked at a handful of different decarbonization roadmaps for the U.S. and found that the minimum amount of carbon removal needed to compensate for residual emissions in 2050 is 1 gigaton, which is the same as one billion metric tons, or a 20x increase from where current policies will get us. It's also equal to about 20% of the carbon that the U.S. emitted last year. “There's a very likely scenario where we need a lot more than that,” said Larsen. “There's scenarios where we need less. But most of the studies out there say at least a gigaton.”
Even if it’s only a rough estimate, landing on a number is useful, he told me. Rhodium Group spends a lot of time answering questions about, for example, what some new policy means for achieving Biden’s goal of cutting emissions in half by 2030. “I don't know if we’d get those questions if there wasn't a 50% target to shoot for,” he said. “So I think this way, people can be like, what does this next wave of policy support for CDR do for getting the U.S. on track for a gigaton?”
The level of investment it will take to get there is also highly uncertain. The authors did a quick back-of-the-envelope calculation to land on $100 billion by 2050: We need to be removing a minimum of one billion tons by then, and the Department of Energy has a goal to bring the cost of carbon removal down to $100 per ton.
The meat of the new report focuses on how to bridge the gap between the roughly $1 billion we spend today and $100 billion, which starts, according to the authors, with treating carbon removal as a public service. It’s not like other climate solutions such as wind turbines or heat pumps, they write, which can rely on private markets to provide predictable demand or to stimulate innovation. “There are very few pathways one can envision where the private sector is going to both scale and deliver those tons,” Larsen told me. Voluntary carbon removal purchases by companies could play a role, he said, but it will not be big enough to get to a gigaton.
Rhodium recommends expanding and extending many of the federal policy programs that already exist — by, for example, providing more R&D funding, doing more government procurement, handing out more loan guarantees, and creating more “hubs” centered on other approaches besides direct air capture, like enhanced weathering or biomass burial. Right now, the tax credit for capturing carbon from the air and burying it underground can only be claimed for 12 years, and projects have to start construction by 2032. The authors call for extending the claim period and moving up the construction start deadline. They also recommend expanding the program to apply to a wider range of carbon removal methods.
A common criticism of government support for carbon removal is that policy makers will over-rely on it. If we aim to do 1 gigaton of carbon removal, does that mean we won’t cut emissions as much as we could have? What happens if, for whatever reason, we can’t achieve the 1 gigaton?
Larsen disagreed with that framing. For one, it’s easy to turn it around: If we don’t scale up the capacity to remove carbon, and we also don’t eliminate emissions by mid-century, we’re not even going to have the option to halt climate change at that point.
But also, decarbonization shouldn’t stop in 2050, he said. If we can achieve that 1 gigaton of annual removal and then keep cutting emissions from remaining sources, we could eventually get to net-negative emissions — even without more CDR. In other words, if we reach a point where we’re removing more than we’re emitting, we could start to reverse global warming, not just stop it.
“I know that's, like, sci-fi,” he told me. “But that's ultimately where we as a species have to go and that’s why setting a target here of at least a gigaton, to me, does not take away the need to reduce elsewhere.”
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“Engineered hydrogen” companies make up a hefty portion of the latest Activate Fellowship class, announced Tuesday morning — a reliable harbinger of investments to come.
The hype around clean hydrogen has come in waves, with investors and policymakers betting that the versatile molecule could help decarbonize everything from fertilizer production to long-haul shipping and heavy industry. Different production methods have come in and out of vogue: Around 2020 it was using carbon capture and storage, then electrolysis powered by clean electricity and subsidized by generous tax credits in the Inflation Reduction Act. More recently, venture capitalists have poured money into the search for naturally occurring deposits hidden underground.
So far, none of these approaches has delivered cheap, low-carbon at any kind of scale. Yet enthusiasm for this latest frontier — so-called geologic hydrogen — has continued to build.
Much of that excitement stems from an even newer concept, alternately known as engineered geologic hydrogen or engineered mineral hydrogen. This is the idea that if naturally occurring hydrogen deposits — which require a precise mixture of geologic conditions — prove too rare or difficult to find, scientists can engineer those subsurface conditions themselves, producing this valuable molecule straight from the earth wherever the right iron-rich rocks are found. Essentially, the approach trades exploration risk for engineering risk.
“I think it’s really a natural evolution,” Sophie Broun, CEO of the seed-stage engineered hydrogen company Anning Corporation, told me. “It’s the evolution that we’ve seen play out from oil and gas — conventional to unconventional — from geothermal to [enhanced geothermal systems], and now we’re seeing it in geologic hydrogen.”
Broun is a member of the new class of Activate Fellows announced on Tuesday morning. The two-year fellowship provides early-stage founders with funding for research and development, as well as a network of fellow founders, mentors, investors, and corporate partners. It’s helped seed cohorts of companies that have gone on to form brand new industries, from clean cement startups Brimstone and Sublime Systems to thermal energy players Antora Energy and Electrified Thermal Solutions.
Dan Recht, Activate’s chief fellowship officer, thinks that the nascent geologic hydrogen industry — which includes both natural and engineered deposits — is next. “This process of seeing these up and coming sectors and industries is routine for us at Activate,” he told me. “At the end of our selection process we now have a pretty good sense of, oh, the U.S. is going to have a geologic hydrogen industry.”
Of the 50 fellows selected this year, nine work in energy. Of those nine, three are hydrogen companies: geologic hydrogen startups Anning and Hydrify, as well as Brint Tech, which is developing hydrogen leak detectors. Anning is squarely an engineered hydrogen company, aiming to stimulate the production of the molecule underground using an undisclosed technology, while Hydrify is building tools to better locate where natural hydrogen deposits already exist.
Like Broun, Recht sees a clear parallel with the geothermal industry, where Fervo Energy is manipulating the subsurface to create the conditions necessary for geothermal power production and Zanskar is using artificial intelligence models to identify previously overlooked conventional geothermal resources. Anning could become the Fervo of hydrogen, while Hydrify could be its Zanskar, he told me. The parallels also extend beyond the companies themselves: The drilling techniques that underpin geothermal development — largely adapted from the oil and gas industry — stand to be just as critical to unlocking geologic hydrogen, which could give this emerging tech a similar bipartisan appeal.
Natural hydrogen company Koloma is by far the best capitalized startup in this space, having raised around $400 million from big-name backers such as Breakthrough Energy Ventures, Amazon’s Climate Pledge Fund, and Khosla Ventures. That said, it has yet to publish any results indicating it’s discovered commercially significant new deposits. That relative silence from the industry’s biggest player has helped fuel the dreams of the even-more-nascent engineered players such as Anning, Vema Hydrogen, Addis Energy, GeoKiln and Eden GeoPower, who think they can achieve quicker, more consistent breakthroughs.
“By being able to deploy the engineered solution, we’re able to be repeatable and scalable, and ultimately, that’s what customers and infrastructure providers need,” Broun told me. Being able to produce hydrogen closer to where it’s actually used could slash transportation costs, often one of the most expensive parts of the hydrogen value chain as the gas typically must be compressed or liquified before transport. “Being able to place that engineered system at a location that’s much more within your control, I think that that is a far stronger or more appealing business case in many cases,” she explained.
Anning raised a pre-seed round last year, and is now raising a $6 million seed round, which would put it more or less on par with other early players in the engineered hydrogen subsector. Vema has raised the most thus far, bringing in an oversubscribed $13 million seed round last February from a group of climate-focused investors including Extantia Capital and Propeller, and is now raising its Series A.
Vema drills its wells into iron-rich rock formations known as ophiolites, then injects water and a proprietary catalyst to trigger serpentinization, a natural geochemical reaction between water and iron minerals that produces hydrogen gas. While this process would typically unfold over millions of years, Vema says it’s aiming to speed up that reaction by a factor of 10,000 to generate commercial quantities of hydrogen on a human timeframe. The resulting hydrogen gas would then flow back to the surface through the well, where it would be purified before its delivery to customers.
The company’s senior vice president of operations, Colin McCulley, told me he expects that it can all be done for less than $1 per kilogram, the so-called “magic number where you start to compete with petroleum-derived hydrogen.” And Vema’s CEO, Pierre Levin, told TechCrunch that once the startup dials in its tech, the price will eventually drop to less than 50 cents per kilogram, making it definitively the cheapest form of hydrogen yet developed.
The company is currently conducting pilot testing in Quebec, home to the well-mapped Thetford Mines ophiolite deposits. But while Vema has yet to release any early results from this pilot, it’s already laying the groundwork for rapid commercialization. Late last year, Vema signed a conditional 10-year offtake agreement with the off-grid data center power startup Verne to supply up to 36,000 metric tons per year of hydrogen, with delivery expected to begin “as soon as 2028.” Then last week, the startup inked a nonbinding memorandum of understanding with Montreal-based sustainable aviation fuels developer SAF + International Group to supply 4,000 tons of hydrogen annually, also beginning “in approximately 2028.” The group will make that fuel at a facility co-located with Vema’s planned Quebec production site to minimize transport costs.
A report shared with me last month from the Cleantech Group, a San Francisco-based market intelligence and advisory firm, cast some doubts on that timeline, however. It called the 2028 target “over aggressive,” given that Vema will need to build a first of its kind facility to fulfill its deals with Verne and SAF + International Group.
“This is the Earth. This isn’t like your lab space where you can exactly control the pressure and temperature and conditions that exist downhole,” Diana Rasner, author of the report and the firm’s group lead for materials and chemicals, told me. “You’re going into territory you can’t see, or that you don’t know how it behaves day to day, let alone like on the scale of what you would think hydrogen production needs to be.”
Even McCulley admits that it’s a stretch, telling me that, “If we have realistic complexity in our project, it will be difficult to deliver on this timeline.” But he thinks the ambition is essential to demonstrate near-term demand and secure commitments for larger projects down the road. He expects the industry to really hit its stride between 2035 and 2040, by which point he says Vema could be looking at a fourth or fifth large-scale commercial project at costs competitive with fossil fuel-derived hydrogen.
But Vema is now facing competition from startups pursuing markedly different approaches to the same problem. Because heat is a natural accelerant of serpentinization, a company called GeoKiln is forgoing chemical catalysts altogether in favor of underground electric heaters designed to stimulate and speed up hydrogen production. Meanwhile, Eden GeoPower plans to apply high voltage electricity to fracture surrounding rocks, which also releases heat and exposes fresh reactive rock surfaces.
Then there’s Addis Energy, which is betting that ammonia production offers a stronger commercial proposition. Hydrogen is often an intermediate molecule in the process of producing ammonia, which is widely used in fertilizers and has become newly interesting for low-carbon shipping fuel. Addis aims to skip that conversion step entirely by injecting water, its own proprietary catalyst, plus a nitrogen-containing compound into the subsurface, triggering a chemical reaction that directly produces ammonia — a molecule that’s simple to transport using existing shipping infrastructure.
Eden raised a $12 million seed round in 2023, backed by a mix of oil and gas industry investors and sustainability-focused funds, while Addis raised a $8.3 million seed round late last year led by climate tech VC At One Ventures.
But investing in the space, Rasner told me, isn’t something everyone in the VC community is comfortable with these days. “It’s not to say that they didn’t believe in it,” she said of investors who did eventually pull the trigger. But it certainly wasn’t an easy decision. As promises of affordable, low-carbon hydrogen production have come and gone, there’s an undeniable aura of uncertainty around the industry, a feeling that has only grown stronger since the Trump administration curtailed clean hydrogen subsidies and froze funding for the previous Biden administration’s hydrogen hubs initiative.
With natural hydrogen players such as Koloma yet to deliver on their early momentum, Rasner told me many would-be backers are approaching the sector with a general attitude best summarized as, “You’re going to be able to do the thing that a lot of the big names in this space haven’t been able to prove out yet, but on your own terms? What’s the catch?”
Recht, however, naturally has a more optimistic outlook. The subsurface has long supplied the minerals that underpin our modern economy, and now it’s increasingly being tapped for geothermal energy as well. In his view, it’s only natural that it might be able to deliver the long-promised hydrogen economy.
“It turns out we’re really good at digging stuff up out of the ground cheaply. If you look at what has humanity decided to do with the past century, it’s to get good at that.”
Current conditions: New England is bracing for a series of severe thunderstorms this afternoon with the potential to cause widespread damage from winds and flooding • A firefighting helicopter crashed while battling Colorado’s Gold Mountain Fire, killing the pilot • Temperatures in Delhi, India, are nearing 100 degrees Fahrenheit today.
Dubai is planning to build a new port and container terminal on the United Arab Emirates’ east coast in a bid to circumvent the Strait of Hormuz and neuter Iran’s ability to leverage its control of the waterway toward geopolitical ends. On Monday, the Financial Times reported that DP World, the logistics giant and port operator based in the glitzy Emirati megacity, was working on a new port in the coastal area of Fujairah. The company’s Jebel Ali hub, located near the contested maritime route, has long served as “Dubai’s crown jewel.” But the newspaper said “shifting some of the port’s capacity outside Dubai marks a seismic change for the emirate, which has established itself as a global trade and finance hub partly off the back of Jebel Ali’s growth.” After all, activity at the port nosedived by as much as 95% after the United States and Israel began bombing Iran in February.
Meanwhile, the war appears to be back on. After resuming mutual attacks last week, President Donald Trump said Monday the U.S. would reinstate its blockade of Iran’s ports. “The U.S.A. will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’” Trump wrote in a post on his Truth Social network.
With the world’s largest fleet of nuclear reactors, the U.S. has the capacity to pump out about 97 gigawatts of atomic energy. If every project now waiting in the pipeline goes forward, the country could nearly double that total capacity. A new analysis by the Breakthrough Institute, a think tank, found that the U.S. has 74 gigawatts of projects in various stages of development. “While it is unlikely that all of that capacity will ultimately be built, if even a fraction of it is deployed it would mark a historic turnaround for the U.S. nuclear industry,” Joy Jiang, an analyst at the Breakthrough Institute who authored the paper, wrote in a blog post. And more appears to be coming: New Jersey Governor Mikie Sherrill signed a bill Monday that creates a new procurement process for building a new nuclear plant in the state.
In Belgium, meanwhile, the government just approved nearly $12.5 million in funding for eight nuclear energy research projects as Prime Minister Bart De Wever seeks to reverse his country’s previous phaseout policy. On Monday, NucNet reported that the government wanted to restore nuclear power to its “rightful place” in the Belgian energy mix.
The International Brotherhood of Electrical Workers, or IBEW, added a record 30,000 new members so far this year, up from 24,000 a year ago. The milestone, announced Monday in a post on X, highlights a looming challenge for Democrats who are embracing the populist wing of the party’s calls for a moratorium on data center construction, no doubt a large part of what’s led to the recent hiring boom. “The building trades unions that the left’s major decarbonization agenda revolves around putting to work are further alienated by data center rejection (instead of regulation),” Fred Stafford, the pseudonymous socialist energy researcher and Heatmap contributor, wrote in a post on X. Still, the political dynamics are hard to pass up for left-wing candidates and advocacy groups. As Semafor reporter David Weigel wrote on X, moderates worry that coming out against a data center will activate opposition spending from the AI industry’s political action committees. “No such worries on the left, which wasn’t getting that money,” he wrote.
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Turkey is building its first nuclear plant and billions of dollars of new hydroelectric dams. But that doesn’t mean wind and solar don’t have a part. On Monday, Renewables Now reported that, over the weekend, the Turkish Ministry of Energy and Natural Resources published announcements for nearly two dozen renewable energy tenders scheduled for this year, with a target of deploying 2.4 gigawatts of new projects.
Shortly after the 2024 presidential election, Heatmap’s Katie Brigham declared “the death of ‘climate tech.’” By that, she meant that the incoming Trump administration would kibosh use of that two-word phrase to describe next-generation technologies that could generate power without emissions or reduce the impacts of global warming in other ways. But the sector is mounting quite a comeback. In the first half of this year, the global climate tech sector notched its busiest six months on record. A Bloomberg write-up of a new analysis by the market research firm Currence identified 153 transactions in the first half of 2026. That’s an eye-popping 70% hike from the same period last year.
It’s been 36 years since the signing of the Americans with Disability Act, yet the country remains tragically inaccessible to people who use wheelchairs, walkers, and canes. (For a disturbing account of just how bad things are in the nation’s largest city, listen to this old “This American Life” episode about lawyer and advocate Britney Wilson’s struggle to use Access-a-Ride, New York City’s para-transit provider.) It’s a problem Tesla aims to change. The auto giant is building a wheelchair-accessible self-driving taxi. But Electrek cautioned that Tesla “gave no timeline, no vehicle, and no details, and it’s not clear the ‘active product’ is anything more than the Robovan it unveiled nearly two years ago.” Nevertheless, I’d welcome its entry to the roads.
At this point, I think it’s clear that AI data centers are unpopular.
You probably know it, at least. I was preparing talk about data center opposition on a podcast today and I took the opportunity to dive back into our data, so I certainly know it. At this point, we’ve written about results from our polling that show Americans overwhelmingly oppose local data center construction, that majorities of Americans now support a national data center moratorium, and that the only group of Americans who feels more optimistic than pessimistic about artificial intelligence is … men older than 65 years old.
So I got curious: Given all that, who actually supports AI data centers?
One question from our recent Heatmap Pro poll, conducted by Embold Research, helps give us a sense. This is the profile of someone our data says would support a data center built in their local area:
A few facets stand out. These data center YIMBYs are more likely to be men, and more likely to be 2024 Trump voters, but they’re not locked into one age demographic or voting cohort. A third are Harris supporters, and roughly a third are women. Data center YIMBYs are more likely to be older than 50, but the majority isn’t overwhelming.
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Perhaps more surprising: The group has many more people who voted third-party in the 2024 election (8%) than the general population (just under 2%), although that response could also include people who didn’t vote. (Alas, the data can’t quite confirm how many in this group are libertarian.)
What’s perhaps most interesting: This group overwhelmingly believes that artificial intelligence will make their lives better. And in heartening news for climate advocates, they are even more likely to support a given data center project if it is powered by renewables.
I was going to joke that the profile is essentially a newly retired engineering dad — except that, to my surprise, these data center YIMBYs are far less gender imbalanced than the American engineering profession. (They’re also less gender-imbalanced than American Tesla owners.) So I’ll leave it at that.