Carbon Capture and Storage Advocates Navigate Political Landscape at CERA Week
Key Ideas
  • Backers of Carbon Capture and Storage (CCS) are aligning with Trump's energy goals to safeguard US climate policies.
  • CCS's potential growth hinges on the survival of the 45Q US tax credit, crucial for economic viability in the absence of carbon pricing.
  • Challenges in CCS progress include significant capital investment, community outreach, and slow policy development for storage facilities.
  • Advocates highlight the economic significance of CCS, especially in industries like oil production where it can enhance output and recovery rates.
During the CERA Week energy conference, proponents of Carbon Capture and Storage (CCS) highlighted the industry's potential growth, underscoring its alignment with President Trump's energy development goals to protect US climate policies. The Carbon Capture Coalition, composed of various stakeholders, emphasized the importance of the 45Q US tax credit for over 275 CCS projects in the US, stating that the projects heavily rely on this incentive for their economic viability due to the absence of a carbon pricing structure in the country. However, the progress of CCS has been slow, attributed to factors like the high capital investment required, community concerns over potential environmental risks, and the delayed policy development for industrial-scaled storage facilities. Despite these challenges, advocates believe there is a growing opportunity in decarbonizing hard-to-abate sectors, driven by European mandates and consumer willingness to pay premiums for sustainable products like 'green' steel and concrete. The connection between CCS and oil production is notable, with companies like Occidental Petroleum utilizing carbon dioxide gas for enhanced oil recovery. Advocates like Vicki Hollub stress the importance of maintaining and potentially adjusting the 45Q tax credit to incentivize carbon dioxide use in enhanced oil recovery, highlighting the economic benefits and oil output advancements facilitated by CCS. This strategic alignment with the current political landscape aims to promote CCS as a significant climate mitigation strategy and economic driver in the US energy industry.
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