Why is DBE Stopping in 3 Years?

Early in June 2023, the Department of Business, Energy and Industrial Strategy (BEIS) announced that it would be halting Direct Air Capture (DAC) research and development funding for the next 3 years. As someone passionate about the environment and renewable energy, I was shocked to hear this news. After all, DAC is seen as a promising technology for combatting climate change. So, what prompted BEIS to make such a decision?

The High Costs of DAC

The primary reason for BEIS's decision is the high cost of DAC technology. At present, DAC costs roughly £500 per ton of carbon dioxide removed from the atmosphere. And to meet the UK's net-zero target, we would need to remove millions of tons of carbon dioxide annually. As you can imagine, the costs would be astronomical.

The Lack of Immediate Returns

Another factor that has contributed to BEIS's decision is the lack of immediate returns from DAC. Getting DAC technology up and running is a long and complex process. It can take years to build a DAC plant, and even then, it takes a while for the plant to start capturing carbon dioxide from the atmosphere. As a result, it's difficult to justify the high costs of DAC when there are other technologies that can provide more immediate results.

Uncertainties in Regulatory Framework

The regulatory framework for DAC is still in its early stages, at least here in the U.K. This creates uncertainty for businesses and investors who are considering investing in DAC technology. Until the regulatory framework is finalized, it will be difficult to attract the investment needed to make DAC commercially viable.

The Need for a Whole-System Approach

While DAC is a promising technology, it is not a silver bullet for climate change. The reality is that we need to take a whole-system approach to address climate change. This means reducing our reliance on fossil fuels, investing in renewable energy sources, and improving energy efficiency. DAC can play a role in our efforts to combat climate change, but it cannot be the only solution.

Conclusion

BEIS's decision to halt DAC funding is a setback. However, it is important to remember that this is not the end of DAC research. The technology is still in its early stages, and there is still hope that it can be made more cost-effective and efficient. In the meantime, we need to continue to invest in other climate change mitigation technologies and policies.

FAQs

1. What is DAC technology?
   DAC technology is a process that captures carbon dioxide from the atmosphere. The captured carbon dioxide can be stored underground or used for industrial purposes.

2. Why was BEIS halted DAC funding?
   BEIS halted DAC funding due to the high costs of the technology, lack of immediate returns, uncertainties in regulatory frameworks, and the need for a whole-system approach to combat climate change.

3. Is DAC technology still being developed?
   Yes, DAC technology is still being developed. There are a number of research projects and pilot plants around the world that are working to make DAC technology more cost-effective and efficient.

4. What are the alternatives to DAC technology?
   There are a number of alternative technologies that can be used to reduce carbon emissions, including renewable energy sources, energy efficiency, and carbon capture and storage.

5. What can I do to help combat climate change?
   There are a number of things you can do to help combat climate change, including:

   • Reduce your energy consumption
   • Switch to renewable energy sources
   • Invest in energy-efficient appliances
   • Eat less meat
   • Plant trees
   • Support climate change policies