Is hyperscaler demand finally giving CCS its moment?
Interchange Recharged
Wood Mackenzie
4.8 • 535 Ratings
🗓️ 24 February 2026
⏱️ 49 minutes
🧾️ Download transcript
Summary
Carbon capture and storage has long been framed as a clean technology that’s forever five years away. Bridget van Dorsten speaks with Tim Vail, CEO of ION Clean Energy, to explore why a surge in AI data-centre demand is reshaping the market for decarbonised gas – and how viable a solution it really is.
Tim argues we’ve entered a buyer-led era for carbon capture, driven by hyperscalers like Amazon, Google and Microsoft who need 24/7 power fast - but are still committed to climate and decarbonization goals. That creates a new question for the energy transition: can natural gas + CCS deliver competitive renewable energy-level carbon intensity, while supporting grid resilience and scaling quickly enough for near-term energy projects?
A big part of the conversation is about measurement and credibility. Tim explains how “carbon intensity” has to be assessed across the full value chain - from wellhead to electrons - including methane leakage. The rise of methane monitoring (ground, aircraft and satellite) and verification systems are helping utilities and buyers prove emissions performance, which is increasingly essential for energy finance, green finance, and corporate reporting. How does it work?
Plus, Tim and Bridget debate the economics. Hyperscalers don’t buy “dollars per ton of CO₂ captured” - they buy power. Tim breaks down what CCS can add on a $/MWh basis, how incentives like the US 45Q tax credit can influence the cost, and why execution (getting projects financed and to final investment decision) is now the real bottleneck. Along the way, Bridget and Tim place CCS in the broader clean firm competition set, including nuclear, hydrogen, geothermal, and solar energy plus batteries, and what this means for future energy predictions and energy policy.
The big question: is CCS at last moving from concept to commercial scale - not because the chemistry suddenly changed, but because demand, verification, and project finance finally might be aligning?
About Interchange Recharged
Interchange Recharged is the Wood Mackenzie podcast exploring the technologies, markets and energy policy decisions shaping the future of energy - from clean tech and clean technology to infrastructure, grid resilience, and the financing models behind the next wave of decarbonisation.
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Transcript
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| 0:00.0 | I know we can get these plants built. The policy is there. We can build big businesses and provide decarbonized power. |
| 0:09.0 | All of us can be successful in the space because the demand is so great. The challenge is, it's just these are big projects, big dollars associated with them. |
| 0:17.7 | How do we get them done? How do we execute on not building the project, |
| 0:23.2 | but really developing it and financing it? There are solutions for them and they're cost |
| 0:28.2 | effective. They're cheaper than what they've been paying for decades now. So why wouldn't |
| 0:34.2 | they move forward and maintain their goals? |
| 0:43.9 | Wood McKenzie's Solar Energy and Storage Summit is back in Denver on the 29th and 30th of April 26. It's co-located with the brand new North American Power and Renewables Forum, |
| 0:49.7 | which features senior speakers from across the U.S. power sector. |
| 0:53.6 | Come and join over 450 senior leaders from U.S. power sector. Come and join over 450 senior leaders |
| 0:56.3 | from U.S. power developers, utilities, and independent power producers to tackle the industry's |
| 1:02.7 | biggest challenges. From navigating life after tax credits to capturing the load growth boom, |
| 1:08.9 | discover how the energy mix is evolving and how the U.S. |
| 1:11.9 | is going to meet that power demand. |
| 1:14.2 | Seats are limited, so register now at woodmack.com. |
| 1:21.3 | Welcome back to the interchange recharged. |
| 1:23.9 | I'm your host, Bridget Van Dorsden. |
| 1:26.0 | And today we're going to talk about carbon capture, a technology that's perpetually five years away. |
| 1:32.3 | But today's guest says something has fundamentally changed and that there are finally |
| 1:37.4 | buyers willing to pay for it. |
| 1:39.5 | And those buyers are the hyperscalor industry, the Amazon, Google, and Microsoft that we've been talking about |
| 1:45.3 | on the show, who all need massive amounts of clean, firm power for AI data centers, and they need it |
| 1:51.6 | now. Whether you like it or not, natural gas is a strong contender that can scale fast enough |
... |
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