NEW YORK, Oct 23 (Reuters) - Google has
entered into the first corporate agreement to buy electricity
from a U.S. power plant using carbon capture and storage in a
deal to help fuel its data centers in the country's Midwest
region, the technology company said on Thursday.
Big Tech's plans to expand technologies like generative
artificial intelligence, which will require vast amounts of
electricity, have butted up against the realities of a U.S.
power grid running short on supplies.
That has led to a flurry of announcements in recent months
by companies like Google to help fund the development of new and
expanded power plants across the country.
Google's recent deals have included purchasing electricity
from advanced nuclear reactors, geothermal and hydropower. It is
also working with the biggest U.S. power grid, PJM
Interconnection, which covers the world's largest concentration
of data centers, to speed up the connection of new power
supplies.
Google's latest power offtake agreement involves a
400-megawatt power plant in Decatur, Illinois, which will be
developed by privately held Low Carbon Infrastructure. It is
expected to produce power using carbon capture, which involves
trapping about 90% of CO2 emissions and injecting them
underground, in the early 2030s.
Google did not disclose the financial terms of the deal.
Natural gas-fired power that is produced while capturing and
storing carbon dioxide had been missing from the equation, said
Michael Terrell, head of Advanced Energy at Google.
"We've been really focused on advancing all these new
technologies for around-the-clock clean technologies and this is
an important piece of the puzzle," Terrell said. "It's a very
important technology that the world needs."
The Broadwing project will be built at an existing
industrial site operated by agribusiness company Archer Daniels
Midland ( ADM ), which has been injecting carbon dioxide
underground from ethanol production since 2017. ADM will also
have the ability to purchase power from the operation, which
will initially deliver electricity to the grid.
Google and Low Carbon Infrastructure said they plan to
pursue additional CCS facilities in the United States, though
they did not disclose specific locations or timelines.
Carbon capture and storage has been promoted by the
International Energy Agency and the Intergovernmental Panel on
Climate Change as a tool to reduce emissions from fossil
fuel-based power and heavy industry. However, critics have
questioned its cost, scalability and long-term effectiveness.