DAC remains too expensive
High costs threaten DAC potential – BCG
Paradigm shift by governments and other stakeholders needed to bring down costs and unlock investment in key carbon removal technology, says Boston Consulting Group
Direct air capture (DAC) is in danger of failing to fulfil its potential as a carbon removal technology because of its high cost and comparatively low levels of support from governments and other players, management consultancy Boston Consulting Group (BCG) says. For the technology to be widely adopted, the cost of DAC—including final storage of CO₂— will need to fall from $600–1,000/t of CO₂ today to below $200/t, and ideally closer to $100/t by 2050, BCG says in a recent whitepaper. “Solving this challenge will require a paradigm shift,” BCG says. “We believe that reducing DAC costs to $150/t of CO₂ or below is achievable, but getting there is going to be a stretch. Reaching this target de
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