The Future of Carbon Capture: Balancing Economic Viability and Climate Leadership
Key Ideas
- Supporters at CERA Week believe Carbon Capture and Storage (CCS) industry growth is imminent, pinned on the survival of key tax credits.
- The Carbon Capture Coalition emphasizes the importance of the 45Q US tax credit for over 275 CCS projects in the US to continue.
- CCS faces challenges with slow progress due to hefty capital investments, community outreach concerns, and differing approaches to carbon pricing.
- CCS proponents highlight the potential for CCS to become a significant US business, leveraging existing pipelines and geographic space for storage.
At the recent CERA Week energy conference, advocates for Carbon Capture and Storage (CCS) expressed optimism about the industry's future growth, subject to the continuation of crucial tax credits. Led by the Carbon Capture Coalition, stakeholders highlight the necessity of the 45Q US tax credit to sustain over 275 CCS projects across the United States. While CCS is viewed as a promising climate mitigation strategy, challenges like substantial capital requirements and community resistance persist. The industry's progress has been slower than expected, partly due to various carbon pricing mechanisms. Despite setbacks, industry experts see potential in the US market for CCS, citing ample storage space and existing pipelines. The connection between CCS and oil production presents a unique dynamic, where carbon dioxide is utilized to enhance oil recovery, emphasizing the economic value of CCS. Advocates like Occidental Petroleum's CEO Vicki Hollub stress the importance of maintaining and adjusting tax credits to ensure parity between storage and enhanced oil recovery credits. Overall, the sentiment surrounding CCS at CERA Week is positive, with a push for policy support to drive economic viability and climate leadership in the industry.
Topics
Middle East
Energy Industry
CCS
Lobbying
Climate Policy
Tax Credit
Carbon Pricing
Oil Production
Environmental Activism
Latest News