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Google’s Carbon Capture Gamble: A High-Stakes Bet on Clean Energy

Google bolsters support for its global workforce with additional products

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Google has committed to purchasing electricity from a 400-megawatt natural gas power plant in Decatur, Illinois, marking its first corporate agreement to support a carbon capture and storage (CCS) project. Developed by Low Carbon Infrastructure, the facility aims to capture approximately 90% of its CO2 emissions, injecting them into deep underground storage formations. This move aligns with Google’s strategy to power its Midwest data centers with cleaner energy sources amid rising demands from AI’s emissions.

The Decatur plant’s proximity to Archer Daniels Midland’s (ADM) ethanol facility, which already employs CO2 capture, presents a unique opportunity for integrated carbon management. Google plans to purchase most of the electricity generated, while ADM will utilize some of the plant’s steam and power. The project is expected to commence operations in the early 2030s, creating approximately 750 full-time jobs during development and sustaining several permanent positions thereafter.

However, the broader CCS landscape presents challenges. A recent study of 13 CCS facilities revealed that many fall short of expectations. For instance, an ExxonMobil plant in Wyoming captures 36% less CO2 than anticipated, and a 115-megawatt facility in Canada captures only half of its projected emissions. These discrepancies raise questions about the scalability and reliability of CCS technology.

Moreover, CCS addresses only a portion of the environmental impact of natural gas. Methane leaks throughout the supply chain can significantly undermine the benefits of carbon capture. Even with a 2% leakage rate, burning natural gas can be as detrimental as coal in terms of greenhouse gas emissions over a 20-year period.

Despite these concerns, Google’s investment reflects a broader industry trend towards diversified energy portfolios. In addition to CCS, the company has secured agreements for nuclear fusion and hydropower projects, aiming to meet its goal of 24/7 carbon-free energy by 2030. While the efficacy of CCS remains debated, Google’s commitment underscores the urgency of exploring various avenues to achieve sustainable energy solutions.

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Manuela Tecchio

With over eight years of experience in newsrooms like CNN and Globo, Manuela is a specialized business and finance journalist, trained by FGV and Insper. She has covered the sector across Latin America and Europe, and edits FintechScoop since its founding.