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New wave of CCS activity: Ten large-scale projects announced
New wave of CCS activity: Ten large-scale projects announced

29th October 2019 - Washington DC

Washington, DC – The Global CCS Institute, a think tank, announced that ten large-scale carbon capture and storage (CCS) facilities were verified and added to its database. “There are now 51 CCS facilities globally – 19 in operation, four under construction, and 28 in various stages of development with an estimated combined capture capacity of 96 million tonnes of CO2 per annum”, said Brad Page, CEO, Global CCS Institute. “We are thrilled to see this new momentum of CCS project announcements globally. Eight of the ten facilities added are in the US, where policy confidence has resulted in increased project activity”, he adds.

The Global CCS Institute identifies and tracks large-scale CCS projects around the world.

The new US projects cover applications such as ammonia production, ethanol production, power, direct air capture, and integrated commercial storage hubs. CO2 storage hubs, which can store large amounts of CO2, remove barriers to CCS investment and help to bring down costs.

“These carbon capture and geologic storage projects across multiple industries and different regions of the country underscore how the revamped federal 45Q tax credit, coupled in some cases with DOE funding for engineering, is stimulating early project development and investment,” said Brad Crabtree, Vice President for Carbon Management at the Great Plains Institute and director of the Carbon Capture Coalition. “This is just the beginning—we will see even more projects emerge as soon as the U.S. Treasury comes out with its long-delayed guidance on the 45Q credit.”

The US-based projects are the result of a combination of sustained government support for CCS deployment and progressive incentive mechanisms triggering private sector action. These include the 45Q tax credit and the eligibility of CCS to receive credits under California’s Low Carbon Fuel Standard (LCFS). The project update also comes on the heels of the US Department of Energy announcing $110 million in federal funding for CCS, including support for Front-End Engineering Design (FEED) Studies for nine CCS projects.

“CCUS plays an important role in reducing emissions and in carbon dioxide removal in the Intergovernmental Panel on Climate Change’s pathways that can limit warming to 1.5-2.0 degrees Celsius. I am encouraged that a diverse set of projects are moving forward across a variety of sectors and applications”, said Karl Hausker, Senior Fellow, World Resources Institute Climate Program.

Two of the projects added were announced by Oxy Low Carbon Ventures, which already operates the Century Plant CCS facility. They include capturing the CO2 from two ethanol facilities, as well as the largest direct air capture project to date, aimed at capturing 1 Mtpa of CO2. The projects are expected to be designed to be eligible for both 45Q and the LCFS. In addition to the projects it is leading, the company also announced a letter of intent for a CO2 offtake agreement with a carbon-negative fuel production facility recently.

“We’re excited to expand our existing carbon capture project plans,” said OLCV President Richard Jackson. “Development of carbon capture, utilization and storage technologies is core to Oxy Low Carbon Ventures’ mission to advance a low carbon economy, and these new projects will open a pathway to producing fully carbon-neutral or even net-negative fuels.”

The global project pipeline also includes important technology developments including what could become the first large-scale direct air capture (DAC) project, as well as what could become the first large-scale CCS application on a natural gas power plant with the UK-based Clean Gas Project. In the Middle East, Abu Dhabi National Oil Company (ADNOC) is adding a second CCS plant to its portfolio. The company is also operating the first CCS project on a steel plant. CCS, which is seen as vital to achieving climate goals, enjoys broad and diverse support.

“It's exciting to see the growing project pipeline for CCS projects both in the US and around the globe. Our hope is that these new projects will demonstrate the importance of investment in CCS and its vital role in creating jobs and sustaining communities”, said Cecile Conroy, Director Government Affairs Department, International Brotherhood of Boilermakers.

This new wave of CCS projects update comes ahead of the release of the Global Status of CCS 2019 Report on December 9 at COP25. The report is the Global CCS Institute’s annual, flagship report and details progress, policies and projects on CCS globally.

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Lee Beck (Washington DC): +1 202 677 9053 lee.beck@globalccsinstitute.com
Annya Schneider (Brussels): +32 255 03972 annya.schneider@globalccsinstitute.com
Lucy Temple-Smith (Melbourne): +61 466 982 068 lucy.temple-smith@globalccsinstitute.com

About the Global CCS Institute: The Global CCS Institute is an international think tank whose mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security. For more information, visit www.globalccsinstitute.com

US Enacts Landmark CO2 Storage Policy
US Enacts Landmark CO2 Storage Policy

12th February 2018 - Washington DC

Early Friday morning, the US Congress approved the most significant pro-carbon capture and storage (CCS) national policy in a decade, a tax credit for CO2 storage, known as 45Q for its section number in the US tax code. The new law is widely expected to stimulate the development of new CCS projects.

The policy change culminates a six-year effort broadly supported by stakeholders in the US and members of both political parties. Institute members Great Plains Institute and the Clean Air Task Force led an advocacy coalition with strong support from Occidental Petroleum, ClearPath and Cloud Peak Energy.

Global CCS Institute CEO, Brad Page, said project developers strongly believe the 45Q program dramatically improves the future CCS financing picture.

“We believe the intersection of better economics with the exciting technology advancements that the US Department of Energy has supported and developed will accelerate the critical deployment of CCS in North America.”

”Financial instruments have always been an essential part of getting any new clean technology deployed and this is the kind of incentive that is needed.”

While government incentives and subsidies dating back to 1992 have pushed a rapid rise in US wind and solar energy, US national support for CCS came later and with more limited application.

A CO2 storage tax credit beginning at $US10 per metric tonne was enacted only in 2009 and capped at 75 million metric tons. With that limit effectively now reached, project development in North America has stalled as developers and stakeholders awaited action by the US to reconsider policy.

The new law both extends and expands upon the original.

Firstly, it includes no cap on storage available for the credit, providing more certainty for projects that may take years to plan and develop.

Secondly, over time the law increases values for geological storage to US$50 per ton and for utilization such as enhanced oil recovery to US$35 per ton.

Thirdly, it lowers the eligibility threshold from 500,000 to 100,000 tonnes of CO2 stored on an annual basis. The higher level in the existing law has prevented smaller industrial projects from using the credit.

Mr Page said the Institute believes the new 45Q law can be a win on all counts.

“This is potentially a boon for business, for global CCS deployment, for energy security, and certainly for the climate.  Its sponsors in the US Congress are to be commended for their tireless work as are stakeholders and our Institute members.”

For more information, please contact:

Antonios Papaspiropoulos (Melbourne): +61 401 944 478  antonios.papaspiropoulos@globalccsinstitute.com

Lucy Temple-Smith (Melbourne): +61 466 982 068  lucy.temple-smith@globalccsinstitute.com

Annya Schneider (Brussels): +32 25503972  annya.schneider@globalccsinstitute.com

About the Global CCS Institute: Our mission is to accelerate the deployment of carbon capture and storage (CCS), a vital technology to tackle climate change and provide energy security. Working with and on behalf of our Members, we drive the adoption of CCS as quickly and cost effectively as possible by sharing expertise, building capacity and providing advice and support so that this vital technology can play its part in reducing greenhouse gas emissions. Our diverse international membership consists of governments, global corporations, small companies, research bodies and nongovernment organisations, committed to CCS as an integral part of a low-carbon future. We are headquartered in Melbourne, Australia with regional offices in Washington DC, Brussels, Beijing and Tokyo. For more information, visit www.globalccsinstitute.com

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