Several US CCS projects reported to be waiting on tax guidelines before being announced
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Combustion Industry News Editor
Forbes has reported that there several carbon capture and storage projects waiting to be announced in the US subject to tax guidance being issued by the country’s Internal Revenue Service on exactly how credits for carbon capture and storage will be accounted for. The ‘Section 45Q’ credits, named after a clause in the federal budget, offer up to US$35/metric tonne of CO2 captured and used for enhanced oil recovery, and up to US$50/tonne of sequestration otherwise, and thus offer a significant financial incentive for deployment of CCS. Senior staff at the Global CCS Institute have some knowledge of the types of projects being developed, and have spoken of shared transport and storage infrastructure, carbon capture and storage from industry (including cement), and also direct air capture ‘at scale’. New business models are also emerging, according to the GCCSI. Janet Peace of the Center for Climate and Energy Solutions told Forbes that the expected group of projects are “exciting. It’s not where we need to be—I’m not going to say it is, because it isn’t. We certainly need more policies, we need more actors, we need more emphasis. I mean, it’s exciting, and we’re starting.” The IRS is expected to release its 45Q guidance “any day now”, and then projects are expected to be announced in the six to twelve months following. It will indeed be an exciting time for CCS, and if the US begins to lead on the technology, the effects will ripple worldwide.