Technology that captures carbon emissions from power plants may finally get a breakthrough as deep-pocketed tech companies try to meet climate goals while powering the AI race.

Why it matters: It could help make natural gas electricity cleaner, but it's long been too expensive. The AI boom could change that.

Driving the news: At least five projects under consideration across the U.S. would capture carbon dioxide emissions from natural gas plants connected to data centers, according to company statements, news coverage and independent reports.

• What's more, multiple interviews with top executives in both energy and AI sectors indicate the technology is under active discussion.

What they're saying: Big tech companies "will be the leaders in demonstrating carbon capture," said KR Sridhar, co-founder and CEO of Bloom Energy, a maker of fuel cell units that generate power with natural gas.

• "I strongly believe carbon capture use and storage will be the only way we will decarbonize the planet in a big way over the next two decades," Sridhar said.
• Bloom is in early talks with "many of the hyperscalers" about deploying carbon capture, but Sridhar said the company won't talk about it publicly until next year.

Between the lines: Oil and gas companies have led much of the early development of carbon capture, but high costs have limited its deployment.

• Big tech companies, meanwhile, are largely sticking to their climate goals even as AI drives a surge in power demand — and political support for climate action weakens.
• That tension, combined with deep balance sheets, could finally push carbon capture toward broader use.

The intrigue: "We have not yet announced a project ... but we're pursuing a bunch of opportunities," said Cully Cavness, co-founder and president of data center developer Crusoe. "Ultimately, it's an economics question."

• Federal subsidies help but don't close the gap, he added: "Soon we'll be able to share something."

Reality check: The industry has been saying for many years that this technology would commercialize widely.

• In fact, no natural gas plants operating in the U.S. have carbon capture equipment right now.

"To be sure, it's still a technology that has a long way to go before it can be commercialized at scale," said Michael Terrell, head of advanced energy at Google. "And we're committed to helping get it there."

How it works: A recent analysis by consulting firm BCG found that natural gas plants with carbon capture were the only option that scored consistently well across cost, speed, scalability and emissions among eight power sources.

Yes, but: A federal tax credit — currently set to expire in 2033 — is key to making projects viable. Upfront capital costs also remain high.

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📈 Oil prices have surged back above $100 per barrel after President Trump said the U.S. will impose a naval blockade on Iran — a plan announced several hours after peace talks in Pakistan ended in failure.

• What we're watching: Pakistani, Egyptian and Turkish mediators will continue talks with the U.S. and Iran in the coming days in an effort to bridge the remaining gaps and reach a deal to end the war, according to a regional source and a U.S. official, Axios' Barak Ravid reports.

💵 The "triple shock" from changes to energy affordability and availability, food price increases, and GDP downturns could push over 30 million more people into poverty, the UN Development Programme warned today. Full report

✈️ Via the FT, "European airports face 'systemic' shortages of jet fuel if the Strait of Hormuz is not fully reopened within three weeks, the industry has warned."

🇺🇸 Trump is touting U.S. oil as an alternative to supplies dependent on the strait. But even higher U.S. exports will offset just a fraction of the disruption. Full story.

🇨🇳 New reports in AP, the WSJ and the NYT dive deeply into something we explored early in the crisis: China's upside. It's the dominant supplier of renewables, EVs and battery tech that could see faster adoption.

Battery recycler Ascend Elements' bankruptcy filing Thursday underscores how one of the hottest low-carbon sectors is now one of the hardest.

Why it matters: When the EV boom fizzled, so did recycling.

Context: Ascend Elements and rival Redwood Materials were the two leading startups in battery recycling, raising $1.1 billion and $4.3 billion respectively, per PitchBook, to make fresh EV batteries from dead ones.

Threat level: Their growth depended on a boom in EV sales — which never took hold.

• Automakers, which once expected they'd depend on recycled batteries to keep pace with EV demand, didn't have reason to buy as many.
• Even if they did, EV batteries are lasting longer than anticipated.

Yes, but: Redwood Materials last year launched Redwood Energy to sell recycled batteries to support data centers and electricity networks.

Talk to our sales team about Axios Pro Deals to unlock the whole story — and for a steady diet of scoops and smart analysis.

Microsoft is telling some CO2 removal startups that it's pausing new purchasing deals, Heatmap first reported and industry sources confirmed to Axios.

• Bloomberg and the Carbon Herald also reported the move.

Why it matters: The tech giant has been by far the largest buyer of credits for removing CO2 from the atmosphere using various emerging technologies.

State of play: "We continually review and assess our carbon removal portfolio along with market conditions for the optimal balance on our path to carbon negative," Microsoft said in a statement to Axios.

Threat level: It could be a setback for startups looking to commercialize and scale removal methods.

• But Ben Rubin of the Carbon Business Council credits Microsoft with being "foundational in scaling" the industry by sending early market demand signals and using a science-based approach.
• "No forward action will erase that impact," he said of the pause, noting Microsoft has helped build a market "supported by a broader set of actors."

What we're watching: It's unclear if Microsoft could still increase its investment in existing projects or when it might resume credit purchases, Heatmap reported.

🏭 Ara Partners, a private equity firm focused on industrial decarbonization, has acquired Sedron Technologies and agreed to invest up to $500 million in the company's waste processing operations. Go deeper

🛠️ Eclipse, a VC firm focused on physical sectors like manufacturing, energy and transportation, raised $1.31 billion across two funds. Go deeper

🚕 Terawatt Infrastructure plans to raise up to $1.5 billion in equity and debt to develop dozens of U.S. charging sites for autonomous electric vehicles. Go deeper

🛫 Sustainable aviation fuel startup Sora Fuel has raised $14.6 million, co-led by Spero Ventures and Inspired Capital. Go deeper

⚛️ Energy Capital Partners announced it has acquired EnergySolutions, a nuclear fuel services provider, for an undisclosed price. Go deeper

That's the share of electric vehicle "consideration" last month on the online auto shopping market Edmunds, the company said.

Why it matters: The number — meaning the share of people who checked out EV listings, reviews, etc. — is fresh evidence that the U.S. gasoline price surge might help depressed EV sales.

• The tally was up from 9.6% in February.

The bottom line: The Sept. 30, 2025, expiration of federal EV tax credits — a provision of the GOP budget law — is still a massive headwind.

• U.S. EV sales were down 27% in the first quarter of 2026 compared to the first three months of 2025, per Cox Automotive data released Friday.

Disclosure: Cox Automotive and Axios are both owned by Cox Enterprises.

"A lot is being made of the disconnect between futures and physical oil markets ... the scarier disconnect is between oil markets and broader equity/capital/fx markets, which remain mostly unfazed. A freight train is coming for the global economy via fuel prices and availability."