Texas DAC Hub Runs on 100% Wind in Global First

Texas just became home to a carbon removal first. Return Carbon and Verified Carbon announced Project Concho, a direct air capture hub in Tom Green County that will run entirely on wind energy. This marks the first time a DAC facility anywhere in the world will operate 100% on wind power, combining two clean technologies in a way that could reshape how carbon removal projects get built and funded.

The facility targets 50,000 tons of CO2 removal annually before 2030, with plans to scale up to 500,000 tons per year. That's roughly equivalent to taking 108,000 gas-powered cars off the road each year at full capacity. The captured carbon gets stored permanently underground through onsite geological sequestration, and the project will generate verified carbon credits for the voluntary carbon market.

How the Wind-DAC Partnership Works

What makes Project Concho unusual is the partnership structure. Greenalia, a Spanish renewable energy producer, will build and operate a dedicated wind farm specifically for the DAC hub. This setup solves two problems at once: the DAC facility gets guaranteed access to low-cost renewable power, while the wind farm gets a reliable customer that buys energy even when grid prices drop.

The companies structured a unique Power Purchase Agreement that allows the DAC facility to optimize energy use around price fluctuations. When electricity prices spike on the grid, Greenalia can redirect power away from the DAC hub to sell at premium rates. When prices drop, the DAC facility ramps up operations using cheap wind energy.

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Why Texas Makes Sense for Wind-Powered DAC

Texas brings three advantages that make it ideal for this kind of project. First, the state leads the nation in wind energy production, with wind currently representing nearly 30% of total electricity generation.

Second, Texas has extensive geological formations suitable for permanent CO2 storage, particularly in the Gulf Coast region.

Third, the state's regulatory environment and existing oil and gas infrastructure provide a foundation for carbon management projects.

The Concho Valley location specifically offers strong, consistent wind resources and suitable geology for carbon sequestration. Local landowners will benefit from new revenue streams through [carbon storage](https://decarbonfuse.com/posts/carbon-sequestration-in-texas-a-new-era-for-co2-storage) agreements while maintaining traditional land uses like ranching and agriculture.

What This Means for DAC Economics

Energy costs represent one of the biggest barriers to scaling direct air capture. Most DAC facilities today spend between $600 and $1,000 per ton of CO2 removed, with energy accounting for a significant portion of that cost. The industry needs to reach $100 per ton to become commercially viable at scale without heavy subsidies.

By securing dedicated renewable power at stable prices through the PPA structure, Project Concho addresses this challenge directly. The flexible offtake agreement means the wind farm gets built with a guaranteed customer, reducing financial risk for Greenalia. In return, the DAC facility locks in predictable energy costs, which is critical for calculating the economics of carbon credit sales.

The Technology Behind Project Concho

Skytree will supply the DAC equipment for Project Concho, using its Stratus system in a connected array. The company's technology originated from carbon scrubbers used on the International Space Station and has been adapted for large-scale atmospheric carbon removal. The modular design allows units to be added incrementally as the project scales from 50,000 to 500,000 tons annually.

Skytree's system continuously optimizes energy consumption while maintaining CO2 capture efficiency. The 24/7 operational capability and modular approach made it a logical choice for a phased buildout like Project Concho, where capacity will grow over time as carbon credit sales increase and additional wind capacity comes online.

Storage and Verification

Verified Carbon brings geological expertise to the project, with founding members who have contributed to more than 35 different carbon capture and storage projects. The company originated from the University of Texas at Austin and specializes in subsurface characterization and landowner partnerships for carbon sequestration.

The onsite geological storage means captured CO2 gets permanently sequestered without requiring long-distance pipeline transport. This reduces project costs and complexity while ensuring the carbon removal is verifiable and permanent, which matters for carbon credit quality and pricing.

Project Phase	Timeline	Annual Capacity
Phase 1 (Initial Operations)	Before 2030	50,000 tons CO2
Phase 2 (Full Scale)	Post-2030	500,000 tons CO2
Equivalent Impact at Full Scale	Annual	~108,000 cars removed from roads

Local Impact and Economic Benefits

Project Concho creates new economic opportunities for Concho Valley landowners beyond traditional agricultural activities. Through carbon sequestration agreements, local property owners gain passive revenue streams while continuing to use their land for ranching or farming. This dual-use approach makes carbon storage more attractive to rural communities that depend on land-based income.

The project also fits into Texas's broader push to become a carbon management hub. With the state's extensive wind resources, suitable geology for CO2 storage, and established energy infrastructure, Texas is positioning itself as a center for both direct air capture and carbon storage projects.

What Comes Next for Wind-DAC Projects

Project Concho establishes a blueprint that other developers can follow. The wind-DAC partnership model solves the energy cost challenge that has limited DAC deployment, while the modular approach allows projects to start small and scale up as carbon credit markets mature. Other regions with strong wind resources and suitable geology, like Wyoming, North Dakota, and parts of the Midwest, could adopt similar approaches.

The project also demonstrates how renewable energy developers can find new revenue streams beyond selling power to the grid. As carbon removal becomes increasingly important for corporate climate commitments and potential future regulations, wind farms paired with DAC facilities could become more common across the United States.

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The Growing DAC Landscape

Project Concho joins a growing number of large-scale carbon capture projects in development across North America. The U.S. Department of Energy's Regional Direct Air Capture Hubs program has committed $3.5 billion to establish multiple facilities capable of removing millions of tons of CO2 annually. Meanwhile, companies like Occidental Petroleum, Climeworks, and Carbon Engineering are racing to bring gigaton-scale DAC facilities online by 2030.

The difference with Project Concho is the dedicated wind power integration. Most existing DAC projects either draw power from the grid or use other renewable sources like geothermal or solar. The 100% wind-powered approach could prove more cost-effective in regions where wind resources are abundant and reliable.

A New Model for Carbon Removal

Project Concho represents more than just another DAC facility. It shows how renewable energy projects and carbon removal can work together in ways that improve the economics of both. The wind farm gets a stable customer that buys power even during low-demand periods, while the DAC facility gets access to low-cost renewable energy that makes carbon removal more affordable.

As carbon markets mature and more companies commit to net-zero targets, the demand for high-quality carbon removal credits will grow. Projects that can deliver verified, permanent carbon removal at competitive prices will be well-positioned to scale. The question now is whether the Project Concho model gets replicated across other wind-rich regions, potentially accelerating both renewable energy deployment and atmospheric carbon removal.