The latest extension and expansion of a tax credit for carbon capture have many taking a second have a look at carbon seize applied sciences for many industries, together with energy plants.
Because the program is designed as a carrot (tax credit) quite than a stick (carbon tax), probably the most polluting vegetation have probably the most incentive to retrofit.
Provided that dynamic, will fossil fuel pursuits and environmental groups alike see this as a win-win?
In response to the Global CCS Institute, there are 17 giant Carbon Seize and Sequestration (CCS) units operating worldwide at the moment, with another 20 in various stages of development. Of these, 11 are in the U.S., and just one, Petra Nova, is linked to an influence plant. The other 10 U.S. amenities are associated with chemical manufacturing and natural fuel processing. Just one of the U.S. amenities sequesters CO2 for the long-term and the opposite 10 use or promote the CO2 for enhanced oil recovery (EOR).
The entire energy plant with CCS projects in the world make the most of put up-combustion capture (the CO2 is removed after the fuel is burned), while some future crops are considering pre-combustion or oxy-fuel combustion seize methods, every their very own relative advantages and disadvantages.
Passed as part of the Federal price range, the tax credits are meant for energy crops and industrial services that seize and sequester CO2 (or sell it for enhanced oil recovery, EOR) that might otherwise be emitted. Each will receive up to $50 or $35/MT for 12 years.
These credits have acquired little fanfare, however they've potential to radically change the economics of some energy crops, and may put some back in the black.
Using publically available datasets, we discover that there are 27 present coal and pure gas combined cycle (NGCC) energy vegetation within the U.S. within 10 miles of current CO2 pipelines. While retrofit applications (or new builds) might be found in different places, shut proximity to existing infrastructure offers some cost advantages.
The power vegetation are separated by region and type, with about 6,700 MW of Coal Sales Online
plants between Oklahoma and Wyoming, and about 11,500 MW of NGCC plants within the New Mexico/Oklahoma/Texas/Louisiana region. If all of those power plants were to retrofit their existing amenities and capture 90% of the CO2 they emit, they might maintain about 1 gigaton of CO2 out of the environment over the 12-12 months credit lifetime, although different types of emissions might still be a problem.
The map below shows current CO2 pipelines in red, current coal energy plants (with 10 miles of the pipelines) in orange, and current NGCC energy vegetation in blue. The dimensions of the bubble signifies the nameplate capability of the ability plant.