Major players in the tech industry are increasingly focusing on gas-capture and carbon-capturing solutions

In the rapidly evolving landscape of renewable energy, a new player is emerging as a potential game-changer - gas-plus-Carbon Capture and Storage (CCS). This technology, which has yet to be deployed at a utility scale, is gaining traction, particularly among data center companies seeking to meet their urgent power needs while keeping their climate commitments.

Julio Friedmann, chief scientist at Carbon Direct, has been at the forefront of this development. He anticipates that hyperscalers, major tech companies with vast data center operations, will soon involve themselves in this promising technology. However, as of now, no hyperscalers have announced their involvement in these plants.

One of the most significant projects on the horizon is NET Power's 370MW gas-plus-CCS plant in Texas, scheduled to begin operations in 2029. Meanwhile, the 742-megawatt Net Zero Teesside Power project in Yorkshire, England, aims to be the world's first gas-plus-CCS project, planning to start operations in 2028.

Exxon is also jumping on the bandwagon, planning a 1.5-GW grid-islanded gas-plus-CCS project for a data center, set to be completed by 2029.

The appeal of gas-plus-CCS lies in its efficiency. Gas-fired generation can be designed and built in as little as 18 months, with the addition of CCS adding 18 to 36 months, if all three stages of planning - carbon capture, transportation, and sequestration - happen simultaneously. This is a significant advantage over nuclear power, which can take much longer to construct.

Moreover, the cost of carbon capture for gas-fired generation is much less per megawatt hour than adding it to coal, despite gas's lower flue concentrations of CO2. Retrofitting an existing plant with CCS is also cheaper, with costs ranging from $40 to $70 per megawatt-hour.

However, there are uncertainties surrounding the U.S. tax credit for carbon capture (45Q), and the permitting of carbon dioxide wells and pipeline infrastructure. Recent challenges in the gas market, such as project cancellations and equipment backlogs, may also complicate the deployment of gas-plus-CCS.

Despite these challenges, the potential benefits are too significant to ignore. The LCOE (Levelized Cost of Energy) of gas-plus-CCS can be competitive with wind, solar, and batteries, and in many markets, it just beats nuclear cold.

Julio Friedmann has been fielding numerous inquiries about this topic and is in discussions with almost all of the hyperscalers. It seems that the future of low-carbon power may well be tied to gas-plus-CCS, and we can expect to see more announcements from hyperscalers in the coming months.

Major players in the tech industry are increasingly focusing on gas-capture and carbon-capturing solutions