NEW ORLEANS - Encore CO2, a Baton Rouge-based climate tech startup, continues to solidify its position in carbon management and utilization after the company announced in Dec. last year that it was awarded a prestigious Small Business Innovative Research (SBIR) grant from the National Science Foundation (NSF) to support its groundbreaking work in electrolytic conversion of carbon dioxide (CO2).
Encore’s innovative electrolyzer technology transforms CO2 and water into ethanol or acetic acid (vinegar). Ethanol is widely used in fuels, disinfectants, and even spirits, while acetic acid serves as a feedstock for producing proteins and medicines. These innovations exemplify how recycling CO2 can provide sustainable alternatives to traditional carbon sequestration.
Encore CO2’s growth aligns with a broader effort to position Louisiana as a hub for energy and climate technology innovation. Last year Newlab, in partnership with Greater New Orleans, Inc. (GNO, Inc.), Shell, Battelle, Carbonvert, and Louisiana State University, launched two U.S. Department of Energy (DOE)-funded programs under the Energy Program for Innovation Clusters (EPIC) initiative. These programs accelerate the commercialization of carbon management and clean hydrogen technologies. The startups selected represent a range of technologies across the carbon management and clean hydrogen value chains:
- Airhive - Highly efficient direct air capture design leveraging a novel fluidization process.
- Arculus Solutions - Robotically-deployed natural gas pipeline coating to safely transport hydrogen or carbon dioxide.
- Banyu Carbon - Sunlight-driven, energy-efficient removal of CO2 from seawater and river water.
- Encore CO2 - Electrochemical conversion of CO2 into valuable carbon-based products.
- Mantel Capture - Point-source carbon capture based on molten borate that combines the benefits of liquid-phase and high-temperature operation.
- Molten Industries - Methane pyrolysis to produce low-cost, clean hydrogen and battery-grade graphite.
- Parallel Carbon - Simultaneous direct air capture and electrolytic production of clean hydrogen.
- RepAir Carbon - Fully electric, zero-heat and solvent-free direct air capture.
- Vaulted - Geologic sequestration of organic waste biomass for durable carbon removal.
Carbon dioxide (CO2) accounts for approximately 76% of total greenhouse gas emissions, with other significant contributors including methane and nitrous oxide. These gases are released during the burning of fossil fuels and the production of materials such as steel, cement, and plastics. The largest source of greenhouse gas emissions comes from the combustion of fossil fuels—coal, natural gas, and oil—for electricity generation, heating, and transportation.
In Louisiana, the chemical industry alone accounts for about one-third of all industrial activity. With its extensive economic output based in industrial technologies, along with a growing demand for sustainable products, Louisiana is well-positioned to become a leader in low-emission manufacturing.
Despite these advancements, Louisiana faces challenges balancing innovation with local community concerns. While companies like Encore CO2 emphasize recycling CO2 into useful products, many corporations are focused on storing CO2 underground to reduce emissions and qualify for federal tax credits of up to $85 per ton.
In Allen Parish, for example, Occidental Petroleum’s plan to develop a 68-square-mile carbon sequestration hub has met resistance from residents concerned about the risks of storing CO2 beneath their land and the impacts it might have on water sources.
Companies like the Toronto-based Woodland Biofuels is investing $1.35 billion to establish the world’s largest carbon-negative renewable natural gas and ultra-green hydrogen facility at the Globalplex multimodal facility at the Port of South Louisiana. Using waste biomass to produce biofuels the facility plans to remove hundreds of thousands of tons of carbon dioxide annually and store it underground.
Louisiana state legislators are caught between the massive economic benefits of carbon sequestration and concerns from residents. They are considering all options including exploring new revenue-sharing frameworks and fees to ensure local governments benefit from carbon capture projects. Currently, parishes receive 30% of revenue from CCS projects on state land, but projects on private land, such as Occidental’s, provide no direct benefits to local governments. The Louisiana House Natural Resources and Environment Committee recently debated proposals for new revenue-sharing structures and policymakers are expected to revisit these issues and consider potential legislation to address them in the spring legislative session.
The combined efforts of startups like Encore CO2, strategic partners through the EPIC programs, and federal and state initiatives are positioning Louisiana to take advantage of investment and talent in carbon management and clean hydrogen. As the state navigates complex challenges surrounding CCS and carbon utilization, startups like Encore CO2’s work highlights a sustainable path forward, offering solutions that address climate concerns while also fostering local economic growth.
