Serving data center load with carbon capture

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Apr 17, 2025

Julio Friedmann, the Chief Scientist at Carbon Direct and a self-proclaimed carbon wrangler, discusses the intricate balance between tech's growing energy needs and climate goals. He advocates for carbon capture and storage (CCS) as a potential game-changer for data centers powered by natural gas. The conversation highlights the surprising economics of CCS, the challenges of building CO2 infrastructure, and the support from big companies like Meta. Julio also addresses the uncertain political landscape surrounding CCS investments and its future role in clean energy.

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INSIGHT

Hyperscalers Prioritize Speed

Hyperscalers prioritize speed, cost, and carbon reduction, with speed being most critical for data center energy supply decisions.
This urgency drives large multi-gigawatt natural gas capacity announcements despite turbine backlogs and price hikes.

INSIGHT

First Natural Gas CCS Project

Carbon capture technology is mature globally with 40 facilities, but none currently serve natural gas power generation.
The UK Teesside project is the first new natural gas plant under construction with integrated CCS, aiming to start in 2026.

INSIGHT

Cost Dynamics of Gas CCS

Capturing CO2 from natural gas flue gas is costlier per ton than coal due to lower concentration, but cheaper per megawatt hour added.
Natural gas's high energy content means CCS adds less to total power cost than coal with CCS.

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Big tech’s data center construction boom is fueling a flurry of natural gas development, despite the fuel’s challenges, and it’s complicating big tech’s climate goals. But carbon capture and storage (CCS) could mitigate emissions from those new plants, and hyperscalers could secure low-carbon power while meeting their needs for speed and reliability.

So how could natural gas with CCS serve data center loads?

In this episode, Shayle talks to Julio Friedmann, chief scientist at Carbon Direct, who recently co-authored a couple pieces on the topic. Despite recent high profile cancellations of natural gas projects, Julio makes the case that gas-plus-CCS has attractive advantages, provided the carbon capture actually happens. Shayle and Julio cover topics like:

The surprisingly attractive economics, even at lower flue concentrations
Where it may compete with renewables, storage, and nuclear
The challenges of siting CO2 infrastructure and uncertainty around the 45Q tax credit
Whether “CCS-ready” kicks mitigation down the road, like H2 blending
Big tech companies like Meta that are signaling interest, but not taking action
The range of CCS technologies and the manufacturers jockeying to supply them
CCS’s uncertain political future in the U.S.

Recommended resources:

Carbon Direct: Carbon Capture for Natural Gas-Fired Power Generation

Carbon Direct: Carbon capture for natural gas-fired power generation: An opportunity for hyperscalers

Latitude Media: Where does gas fit in the puzzle of powering AI?

Latitude Media: High costs, delays prompt withdrawal of five more Texas gas plants

Latitude Media: Hydrogen-ready’ power plants aren’t actually ready for hydrogen

Latitude Media: Engie’s pulled project highlights the worsening economics of gas

Credits: Hosted by Shayle Kann. Produced and edited by Daniel Woldorff. Original music and engineering by Sean Marquand. Stephen Lacey is executive editor.

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