INTERVIEW: Data center boom drives European CCS power uptake: Carbon Clean

The surge in data center construction across Europe is driving demand for carbon capture technology as operators seek clean behind-the-meter power generation to bypass lengthy grid connection queues and meet decarbonization targets, Carbon Clean CEO Aniruddha Sharma told Platts, part of S&P Global Energy.

Data center developers are increasingly turning to on-site gas-fired generation paired with carbon capture systems to secure power supplies years faster than grid connections would allow, while meeting stringent decarbonization requirements in European jurisdictions, the CEO of the carbon capture technology company said in an interview July 16.

Grid connection approvals can take six to 10 years, making behind-the-meter generation with a decarbonization pathway the more attractive option for projects targeting near-term start dates, Sharma said.

"It's almost impossibly hard to get a 200-megawatt behind-the-meter gas power development approved in 2027 if you don't have some kind of carbon capture thinking behind it," he said.

The economics are compelling for London data centers, where behind-the-meter power with gas or diesel generation paired with carbon capture will be cheaper than grid power costs when factoring in carbon prices and avoided network fees, he said.

The UK is targeting a decarbonized power system by 2030, and while analysts largely agree that the aspiration will not be met, the direction of travel is clear.

No new gas-fired generation was awarded in the country's latest capacity market auction, with 364 MW of combined-cycle gas turbine capacity exiting the auction.

However, committing to gas supply for power is not without risks. The European gas market has experienced two major disruptions and price shocks over the last five years, and a lack of grid connections could reduce power supply optionality.

Platts assessed month-ahead UK NBP gas prices at Eur56.68/MWh ($64.71/MWh) July 20, up from about Eur30/MWh before the start of the US-Israel war with Iran began at the end of February.

Centrifugal capture technology

Carbon Clean's centrifugal capture technology offers a significantly smaller physical footprint than conventional carbon capture systems, addressing permitting challenges and local opposition that can delay projects, Sharma said.

The company's prefabricated modular system can reduce the unit footprint by 50% and reduce equipment size by 10 times compared with established conventional technologies, the company says. The technology uses chemical-capture principles in a centrifugal design that reduces facility size and enables rapid deployment.

"When you have that kind of size reduction, you can build everything inside the box," Sharma said. "All you have to do is go to the site and integrate it."

A demonstration plant at ADNOC's Ruwais facility in the UAE, capturing 10 metric tons/day of CO2, was built on site in four days using three shipping containers, Sharma said. After 4,000 hours of testing, the unit was relocated to Saudi Arabia, highlighting the system's mobility and scalability.

Carbon Clean's capture rates range 90%-92%, with potential for higher performance, depending on customer requirements, Sharma said. Some companies can achieve net-zero emissions when combined with biomass fuels that provide negative emissions, he added.

Energy consumption varies by capture sector, with gas turbines producing 3.5%-4% CO2 concentration compared with 20% for cement production. The technology uses on-site heat and reduces regeneration temperatures during the capture process, Sharma said.

The company manufactures its next-generation technology in the UK, positioning carbon capture as a significant manufacturing opportunity for the country, leveraging existing oil and gas and North Sea expertise, he said.

Infrastructure requirements

CCS requires three key elements to scale successfully: policy certainty, long-term regulatory stability, and support to get initial projects operational, Sharma said. "Just those three things would actually make it happen."

Pipeline and terminal access to carbon storage sites has emerged as the primary constraint for projects, with most storage facilities expected to come online in the late 2020s and into the 2030s, Sharma said. Many data centers are planning locations near areas with excess power capacity or existing industrial connections to storage infrastructure.

Effective carbon pricing likely needs to reach the low three-digit range, though prices that are too high risk destroying demand and damaging the economy, Sharma said.

Platts assessed nearest December UK carbon allowances at GBP61.50/mt ($82.35/mt) on July 20.

The setback from Orsted's canceled FlagshipOne e-fuels project in Sweden -- for which Carbon Clean was to supply capture equipment -- provided valuable learning opportunities that can be applied to other developments, particularly as e-SAF mandates drive demand for sustainable aviation fuel, he said.

The company is also pursuing projects in India focused on methanol production, driven by the country's goal of increasing energy independence and reducing import dependency, Sharma said.

Effective carbon pricing likely needs to reach the low three-digit range, though prices that are too high risk, destroying demand and damaging the economy, he said.